Cypress Real Estate Advisors JV Lands $67M Loan for Denver Development
- Sep 30, 2020
Developers Cypress Real Estate Advisors and Flywheel Capital have secured a $67 million construction loan from Pacific Western Bank to build The Cameron, a 361-unit, Class A luxury apartment community in Denver.
JLL Capital Markets, which represented CREA, arranged the five-year, floating-rate loan. Managing Director Campbell Roche and Senior Managing Director Eric Tupler led the JLL team.
CREA Principal Chase Hill and Development Associate Adam Wallace are working in partnership with Ben Hrouda, managing partner at Denver-based Flywheel Capital, to develop The Cameron on 2.9 acres. It will be the first phase in a two-phase build out of a larger 5.4-acre assemblage.
Located at 4545 E. Warren Ave. near the Colorado Station RTD light rail stop, The Cameron will be a five-story property with 30 studio, 239 one-bedroom and 92 two-bedroom apartments. Units will feature stainless-steel appliances, quartz countertops and spacious balconies. Select units will have vaulted ceilings. Community amenities will include a resort-style pool with cabanas and grilling stations, a two-story clubroom, courtyards, fitness center, business café and an eco-friendly recycling and waste reduction program.
Roche said in a prepared statement The Cameron will be capitalizing on its proximity to Colorado Station. He noted Hill and the CREA team have previously delivered best-in-class projects in the region including CIVIC Lofts in downtown Denver and The Alcott in Jefferson Park.
CREA, an Austin, Texas-based residential and mixed-use investment and development firm, develops and repositions properties in high-growth markets in the Southeast and Southwest. In addition to Austin and Denver, the firm focuses on Nashville, Tenn., and Raleigh, N.C. CREA has previously been active in Denver’s River North Art District (RiNo) neighborhood, where it built Yards at Denargo Market and the Crossing at Denargo Market with a total of 622 multifamily units. The firm states on its website it plans to build two additional multifamily projects in the neighborhood it created more than 10 years ago when it acquired a 30-acre site northeast of Coors Field that had been mostly industrial buildings. Also in Denver, CREA owns Gleneagles, a 562-unit Class A multifamily asset it acquired in 2008.
Denver has been one of the fastest growing major cities in the United States, with a population growth of 18 percent over the last decade. It is recognized as a millennial “boomtown” because of the city’s recent tech boom and the vast employment opportunities. The market has also remained stable throughout the pandemic with the multifamily market outperforming the national averages in both collections and occupancy.
The Yardi Matrix Multifamily Denver Report for Summer 2020 also noted fundamentals are holding up well compared to U.S. averages. Rent rates increased 0.1 percent on a trailing three-month basis through July to an overall average of $1,549, according to Yardi Matrix. The occupancy rate in stabilized properties was 94 percent as of June.