Avanti Residential Buys Denver Asset for $31M
Northmarq facilitated the transaction.
Avanti Residential has acquired Park Cheesman Apartments, an 88-unit high-rise at 1177 Race Street in Denver, Colo. The company paid $31 million to the previous owner, listed as Arqitel, which acquired the property in 2019 for $30 million, according to Yardi Matrix data.
Originally developed in 1970, Park Cheesman is an 11-story concrete tower whose one- and two-bedroom residences average 877 square feet and include penthouse units with mountain and downtown skyline views. The building sits directly on Cheesman Park, next to the Denver Botanic Gardens.
Common-area amenities include a swimming pool, a fitness center and laundry facilities. There are 130 parking spaces, and detached garages are available for an extra fee. The East Colfax Bus Rapid Transit line, slated to open in 2027, will run three blocks north of the property.
Avanti financed the purchase by assuming the property’s existing fixed-rate loan from Nationwide Life Insurance Co., together with new supplemental financing from Nationwide. Brian Fisher, Senior Vice President of Debt & Equity at Northmarq, arranged the loan assumption and supplemental financing with Nationwide.
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Avanti Residential will manage the community directly. The company operates a property three blocks north of Cheesman Park and runs a centralized resident-services platform specifically for communities of this size.
No multifamily property of 20 or more units has been delivered within one mile of the site since 2020, according to the buyer, and none is under construction. There are also no developable parcels left on the park.
Denver multifamily market cools
Rents in Denver’s multifamily market were down 3.6 percent year-over-year in July, well below the 0.2 percent growth rate seen nationwide. The market’s occupancy rate came in at 93.5 percent as of June, below the 94.1 percent national figure.
More than 4,700 units delivered in the market year-to-date through July, and there are about 18,000 more under construction. Investment activity lagged, however, with transactions reaching $511 million, a 65.5 percent drop from the same period a year earlier.
Still, investors are doing some deals. In September, FPA Multifamily acquired a three-building, 237-unit multifamily portfolio in Denver. The properties, in the Observatory Park neighborhood of the city, had not changed hands in more than 50 years.
That same month, Michelson Organization acquired Peakline at Copperleaf, a 266-unit community in Aurora, Colo., for $72.5 million. 29th Street Capital sold the asset, which last traded in 2022.
