Central Denver apts. trade for $140 million
A joint venture between Urban American and Madison International Realty purchased a “one-of-a-kind” asset – the largest value-add apartment community in central Denver.
The partnership paid a reported $140 million, or $304,348 per unit, for the Marquis at the Parkway, a 460-unit multifamily property at 1170 Galapago St. in Denver.
“Despite COVID-19-related challenges, the sellers and buyers did a fantastic job getting this deal across the finish line,” said Shane O z m e n t of Newmark Knight Frank who, with Terrance Hunt, Amanda Meldrum and Craig Ratterman, represented the sellers, Austin-based CWS Capital Partners and Denver-based Consolidated Investment Group.
“The sale of Marquis at the Parkway is another confirmation of the stability of Denver’s market,” Ozment continued. “We went to market in March and were faced with new challenges and travel limitations due to COVID-19. By utilizing creative mediums including drone tours, virtual property and unit tours and digital marketing, the results proved positive, even in these turbulent times. Denver continues to be a market that investors want to be in long term due to its tremendous market fundamentals.
“It’s a deal we will talk about for the rest of our careers.”
Built in 1982, Marquis at the Parkway is the largest value-add multifamily community in central Denver, according to the listing brokers.
“It’s a one-of-a-kind asset,” said Ozment, noting in the central Denver market there is not a value-add apartment property like this that allows a buyer to come in and make renovations, add nicer finishes and compete with newer assets.
The buyer is expected to do a full value-add program to the Marquis at the Parkway.
The seller had renovated 126 units and added washer and dryer hookups to 227 units, according to Ozment.
When the property was taken to market, it was 95% occupied.
It features a mix of one- and two-bedroom units that average 896 square feet.
Marquis at the Parkway is two blocks from the Auraria campus and three blocks from Denver Health; it also features walkability to neighborhood amenities, including restaurants, coffee shops, breweries, entertainment venues and specialty fitness concepts. The property also is adjacent to the Cherry Creek Trail.
“Madison is pleased to expand upon our multifamily joint venture with Urban American and grow our portfolio with this transaction in Denver, a market with a strong growth trajectory and fundamentals,” said Ronald Dickerman, Madison International Realty founder and president.
The complex will be operated by a subsidiary of Urban American Management. Urban American currently owns and manages more than 7,000 apartments in New York, New Jersey, Texas and Colorado.
Featured in the October 21-November 3, 2020, issue of CREJ