RXR JV Receives $125M for Denver Mixed-Income Project
The transit-oriented development is taking shape in the city's River North Arts District.
RXR, alongside Halpern Real Estate Investments, Korman Communities and Invent Development Partners, have obtained $125 million in construction financing for AVE Station House, a 301-unit multifamily development in Denver.
The property, located at 4001 Walnut St., will rise 13 stories over the city’s River North Arts District. The developers broke ground in April of this year, and the community is expected to come online in 2028.
The financing consists of a $100 million senior loan provided by Madison Realty Capital and a $25 million mezzanine loan provided by an insurance company. RXR will develop the property, and will also serve as an equity investor in the project.
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AVE Station House will include 271 market-rate apartments and 30 affordable units, plus more than 6,200 square feet of ground-floor retail. The community will offer a mix of studios and one-, two-, and three-bedroom units that all have soft-close cabinetry, full-size washers and dryers, smart home technology and specially designed work-from-home spaces.
Common-area amenities at AVE Station House will include a rooftop pool and lounge, a fitness center, a spa with sauna and steam room and coworking spaces with private work pods and conference rooms. There will be a golf simulator and sports lounge, a pet spa and around 290 secured parking spaces. The transit-oriented property is within walking distance of a number of bars, galleries, boutiques and entertainment venues.
JLL Capital Markets’ Debt Advisory team, led by Senior Managing Directors Leon McBroom and Michael Gigliotti, Senior Director Will Haass and Associate Ellie Savage, represented the borrower. Paul Patafio of Hudson Realty Capital also represented the borrower in arranging financing for the project.
Denver’s strong supply growth
Denver’s multifamily fundamentals are soft due to strong recent supply growth, with rents dropping 3.6 percent year-over-year in April, according to Yardi Matrix. That figure differs vastly with the with 0.2 percent rise nationwide over the same period. The occupancy rate in stabilized properties decreased 90 basis points compared with last year, to 93.2 percent in March.
Even so, a number of rental projects are underway in the market. In May, GM Development obtained $130 million for the adaptive reuse of a former Veterans Affairs hospital campus in Denver. The project will create a mixed-use community with 493 apartments.
Late last year, Mill Creek Residential broke ground on Amavi Thornton, a single-family, build-to-rent community in northern metro Denver. When it comes online in 2027, the property will feature 162 two-, three- and four-bedroom townhouses.
