Denver apartments sell for $31.1 million
Elterra Investments traded out of a trio of smaller central Denver apartment properties and into the 78-unit Garfield Park apartments.
The private, local investor paid $18.9 million for Garfield Park, located at 1300 and 1325 Garfield St. in Denver’s Congress Park neighborhood.
Robert Bratley of CBRE represented Elterra Investments in the acquisition as well as its disposition of the three-property portfolio.
“The buyer purchased Garfield Park through a 1031 exchange after successfully completing the sale of their three-property central Denver portfolio at the end of March. Despite the inherent challenges related to COVID-19, the timing worked out well, and Elterra Investments was able to increase its unit count substantially,” said Bratley.
Garfield Park, constructed in 1965, comprises a mix of studio, one- and two-bedroom units.
The community also features a fitness center, courtyard, laundry and leasing facilities. It is less than a block from National Jewish Health and within a couple blocks of Sprouts Farmers Market as well as Congress Park bars and restaurants.
The buyer plans to renovate all of the units with high-end finishes and get them to market level. A handful of units already were renovated at the time of sale as were the common areas.
Additionally, Bratley negotiated for Cornerstone Apartment Services to take over management during the contract and filled several vacancies prior to the sale. The property was 93% leased at the time of closing. Elterra sold to a large, local investment group the three-property portfolio. The 51-unit portfolio comprised the 27-unit Park Lafayette community at 950 Lafayette St.; the 12-unit 1120 York property at 1120 York St; and 1136 York, the 12-unit community at 1136 York St.
The properties sold for $12.2 million.
“The impact of COVID-19 became a reality a couple of weeks before closing on this portfolio. Fortunately, everyone worked together. Strong, proven buyers like this will be a commodity in the coming months as we all try to weather this period of uncertainty,” said Bratley.
Over the past few years, the seller had renovated most of the units in the portfolio.
Park Lafayette, one block west of Cheesman Park, includes quartz countertops, new cabinets, stainless steel appliances and plank flooring. The community also has a pool, lounge area with a gas fire pit and barbecue grill.
The York Street properties are located across Chessman Park to the east and a block from the Denver Botanic Gardens.
Featured in CREJ’s May 6-19, 2020, issue