High-End Denver Property Scores $49M Loan

The community's residential section was 74 percent occupied at the time of the deal.
Aspire 7th & Grant. Image courtesy of JLL Capital Markets

JLL Capital Market has closed a $49 million acquisition loan for the 178-unit Aspire 7th & Grant in Denver.

To facilitate the off-market transaction, the firm’s Managing Director Leon McBroom worked on behalf of the buyer to secure a seven-year fixed-rate loan through Northwest Mutual Real Estate Investments. The Class A property’s residential component was at 74 percent occupancy at the time of the deal.

The property traded in April, when Clarion Partners bought it from Dinerstein Cos. for $92 million, or roughly $516,000 per unit, according to Yardi Matrix.

Completed last year, the asset is located at 670 N. Grant St. in Denver’s Capitol Hill submarket. Featuring a combination of studios and one- and two-bedroom floorplans averaging 882 square feet, the community also includes 3,898 square feet of ground-floor retail, of which roughly half is already leased.

The eight-story building includes subterranean parking, a sky terrace with outdoor fireplace, as well as a clubhouse and rooftop business center. Other amenities include a garden deck with swimming pool, fitness center, yoga room and indoor pet spa.

Upscale appetite in Denver

A total of 4,768 units in 22 properties worth $1.3 billion sold this year through April across metro Denver, with investors focusing primarily on the market’s upscale segment, a recent Yardi Matrix report points out.

What’s more, in the 12 months ending in April, 65 percent of the 86 properties that traded were upscale Lifestyle communities. Meanwhile, just 30 percent were working-class Renter-by-Necessity assets, while 5 percent were fully affordable properties, the same report shows.