Sloans apartment sells for $103 million

Castle Lanterra Properties paid $102.8 million for the 369-unit Alexan Sloan’s Lake apartment community, marking its first purchase in Denver.

CLP, based in New York City, purchased the 369-unit, newly constructed community at 1550 Raleigh St. from Trammell Crow Residential.

The community is in the Sloans, mixed-use development on the former St. Anthony’s Hospital campus across from Sloan’s Lake.

“The property’s location cannot be replicated,” said Elie Rieder, CLP founder and CEO.  “Sloan’s Lake Park is a unique recreational amenity that sets it apart from downtown properties, and provides a true live-work-play environment for residents.”  

The property is unique in the CLP portfolio in that it also includes a significant retail component. Alexan Sloan’s Lake has more than 8,800 square feet of ground floor, fully leased retail space, adding to the “neighborhood” feel of the community. Retail tenants include the recently opened Sloan’s Tap and Burger, a sister restaurant to the popular Highland Tap and Burger, and Cultura Fusion, a Latin-fusion concept restaurant backed by a successful restaurant group. In the immediate vicinity, Little Man Ice Cream, Starbucks, Seedstock Brewery, and an Alamo Drafthouse (a dine-in movie cineplex) are already open or coming soon.  

“We are very pleased to see the caliber of regional and national retailers who share our long term vision for this redevelopment site,” added CLP Managing Director, Austin Alexander. “The immediate impact will be increased foot traffic and marketing exposure for the property, but it is the expected market appreciation of this investment that we find most accretive”.

 Amenities of the community include:

•    A clubhouse and a resort-style pool;
• Media room and outdoor movie wall;
• State-of-the-art fitness center, spin and yoga facilities;
• Work from home offices and conference room.
• Bike repair room;
• And dog wash room

Units include top-end finishes including granite countertops, hardwood cabinets, stainless steel appliances and Sonos Bluetooth speakers. The community has 19 different studio, one-, and two-bedroom floor plans, with an average unit size of 744 square feet.

Alexan Sloan’s Lake is a four-block walk to a light rail station, providing access to downtown Denver and other major employment centers in the metropolitan area. The community is near several of Denver’s major thoroughfares, including West Colfax Ave., Interstate 25, and U.S. 6.

The purchase is a bit of a departure for CLP, which typically repositions value-add properties through capital improvements, often upgrading them to best-in-class status in their respective submarkets.

“Historically, our name and reputation has been closely associated with the value-add investment space,” Rieder said.

“However, with a brand new asset already at the top of its market, our strategy here is to implement CLP’s style of management while capitalizing not only on the core strength of the Denver market, but the accelerated growth of this particular submarket,” said Rieder.

“In many respects, Alexan Sloan’s Lake symbolizes the type of property we aspire to own,” Rieder said.

 Formed in 2009, Castle Lanterra Properties is a privately held real estate investment company focused on the acquisition and management of quality income producing multifamily properties within strategic growth markets throughout the US.. Castle Lanterra Properties currently owns and manages a portfolio of more than 8,300 units and a value in excess of $1 billion.

The property was listed and marketed by the ARA Newmark team of Jeff Hawks, Terrance Hunt, Doug Andrews, Shane Ozment and Chris Cowan.

 “The buyer was attracted to the unique opportunity to get in on the ‘ground floor’ of a rapidly emerging, infill redevelopment in Denver that has popular retail and is anchored by Sloan’s Lake Park,” according to Hunt.

.”Alexan Sloan’s Lake is part of a new trend that hit the metro Denver market this year. In 2016, there have been 23 multifamily sales of product built since 2010 which is more than double the number of newly built sales in the previous two years,” Hawks said.

Hunt said Alexan Sloan’s Lake is an example of the high-quality apartment communities being developed in Denver.

 “It is now a requirement for developers to offer unique finishes and a slew of community amenities but Alexan Sloan’s Lake provides luxury beyond the new ordinary,” Hunt said.

“Cutting-edge amenities and in-unit features at the property include an outdoor movie wall, fire bowls, a resort-stylepool, in-unit Sonos Bluetooth speakers and USB ports in kitchens and bedrooms. The asset is across the street from what could be considered its greatest amenity, Sloans Lake Park, Denver’s second largest park featuring a 177-acre lake that residents can enjoy with paddleboards and kayaks rented by the property.”