Bentall Kennedy has acquired a 338-unit, LEED Gold-certified community in central Denver on behalf of its U.S. core fund for $109.6 million, according to Yardi Matrix data. Alameda Station, located at 275 South Cherokee St., was built in 2014 and is more than 94 percent occupied.
Private real estate investment firm IMT Capital sold the property to NewTower Trust Company, which serves as the trustee for Bentall Kennedy’s open-end MEPT Fund. IMT Capital had picked up the asset from Wood Partners for $84 million in October 2014, according to Yardi Matrix.
The most recent sale price amounts to more than $324,260 per unit for the Class A multifamily asset, which consists of three four-story buildings sitting on more than 5 acres. The property is located in the historic Baker neighborhood, just across the street from the Alameda light rail station, which provides rapid service north to downtown Denver and southeast to the Denver Tech Center.
Green living downtown
The luxury property’s units range from studios to three-bedroom layouts, each with a patio or deck. Alameda Station was built with certified “green” cabinetry, formaldehyde-free carpet and low-VOC paint and flooring.
Bentall Kennedy cited strong market conditions and the property’s strategic location in a prepared statement, adding that the investment aligned with its strategy of boosting its allocation of mid-rise, multifamily assets in primary markets driven by the knowledge economy.
Formed in 1982, the firm’s MEPT Fund is a commingled real estate equity vehicle that invests in a diversified portfolio of core institutional-quality assets in the U.S.
Robust multi market
Denver’s rapid economic expansion and steady population growth drove healthy absorption and rental demand in 2018, according to Yardi’s most recent market report. The briskly evolving information sector added 2,100 jobs, up 3.5 percent year-over-year.
Rental growth accelerated to 3.7 percent year-over-year through January, outpacing the national rate by 40 basis points. More than $4.6 billion in multifamily assets traded in Denver during the year, a significant slowdown from the 2016 cycle peak, but property values reached a cycle high of $241,039 per unit—56 percent higher than the national average.
Last month, Gelt Inc. purchased Cedar Run Apartments, a 384-unit community less than 5 miles east of Alameda Station, for $62 million.