Centerspace Pays $54M for Denver Community
The property last changed hands in 2022 for $66.2 million.
Centerspace has acquired The Lydian, a 129-unit community in Denver. The Class A property changed hands for $54 million. Cohen Rojas Capital Partners was the previous owner, according to Yardi Matrix information.
The buyer financed the acquisition with the issuance of $14.5 million of common operating partnership units and assumed $35 million of mortgage debt that matures in February 2037.
The asset last traded in January 2022, when the previous ownership purchased the property from Palisade Partners for $66.2 million—or $513,178 per unit—the same source shows. USAA originated a $39 million loan for the acquisition.
The six-story building came online in 2018 and consists of studio, one-, two- and three-bedroom floorplans ranging from 532 to 1,563 square feet and 23,000 square feet of fully leased office and street-level retail space. A total of 22 units are affordable. Select layouts also feature private balconies or patios.
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Common-area amenities include a fitness center, a rooftop swimming pool with deck, a clubhouse and EV charging stations. Additionally, the community has barbecue grills and fire pits, a game room and an underground parking garage.
Located at 2590 Welton St., the transit-oriented mid-rise is near downtown Denver, in the Five Points neighborhood. The property is 25 miles from Denver International Airport.
Centerspace acquired its first Denver multifamily asset in 2017. Including this acquisition, the company’s local portfolio consists of nine communities totaling about 2,540 units.
Denver sees increase in multifamily transactions
As of September, Denver saw 47 communities—or 10,975 units—trading year-to-date for a combined $2.9 billion, according to Yardi Matrix information. This marks a significant increase from the 33 properties—or 6,505 apartments—that changed hands for $1.7 billion during that same period in 2023.
Last month, S2 Capital acquired Dartmouth Woods, a 201-unit community in South Lakewood, Colo. The garden-style property came online in 1990 and is set to undergo renovations.
Other notable deals in the area include BMC Investments’ purchase of Advenir Del Arte Apartments, a 351-unit workforce housing community in Aurora, Colo. Advenir sold the 1986-completed asset for $70.5 million.