JV Acquires Denver Community for $140M
- Oct 08, 2020
A joint venture between Urban American and Madison International Realty has acquired Marquis at the Parkway, a 460-unit community in Denver. The property sold for $140 million, or about $304,348 per unit, according to Yardi Matrix data. CWS Capital Partners and Consolidated Investment Group sold the property, with Newmark Knight Frank representing the sellers.
Built in 1982, the community is located at 1170 Galapago St. in the Golden Triangle and Lincoln Park neighborhoods just south of downtown Denver. The property offers a mix of one- and two-bedroom units across three buildings of 10 stories. Amenities include a business center, fitness center and clubhouse, swimming pool and spa.
The community is adjacent to the Cherry Creek Trail and has walkability to neighborhood offerings from restaurants and breweries to specialty gyms. Marquis at the Parkway is also two blocks south of the 150-acre Auraria Campus, which serves more than 43,000 students at the University of Colorado Denver and other schools, and three blocks north of Denver Health, a major hospital.
NKF’s Vice Chairmen Shane Ozment and Terrance Hunt, along with Senior Transaction Manager Amanda Meldrum and Transaction Manager Craig Rattermann, represented the sellers of the property. Ozment noted in a statement that NKF began marketing the asset in March and used drone tours, digital marketing and virtual property and unit tours to overcome the challenges and travel limitations triggered by the pandemic.
The community will be operated by a subsidiary of Urban American, a company founded by Philip Eisenberg that owns and manages more than 7,000 apartments in New York, New Jersey, Texas and Colorado. Private equity firm Madison International Realty provides liquidity to real estate investors, focusing on existing properties and portfolios in the U.S., the U.K. and Europe.
Multifamily transaction activity in Denver came to a near-halt in the second quarter, with deal volume in January through July totaling $1 billion less than in the same period of 2019. Of the more than $1.6 billion in multifamily trades through July, about $1.4 billion occurred in the first two months of the year, according to the latest Yardi Matrix report.
Rent rates bounced back 0.1 percent through July on a trailing three-month basis through July, while the occupancy rate in stabilized properties declined to 94.0 percent as of June.