AvalonBay Communities and Mill Creek Residential are keeping the Denver market active with acquisitions and new development.
AvalonBay enters the metro market with the acquisition of The Lodge Denver West, a 252-unit apartment home community completed in 2016, located in Lakewood, Colorado. The Company acquired the community on September 1, 2017 for a purchase price of approximately $76.8 million. Mill Creek Residential plans to build an eight-story 250-unit complex in downtown Denver on the south side of Speer Boulevard and Grant Street. The developer purchased a 1.3-acre site for $10 million last week. The property includes a small office building.
AvalonBay's Chief Investment Officer Matt Birenbaum said the move to the Denver market is a natural progression for the company.
“We are excited to announce our entry into the Denver market with the acquisition of The Lodge Denver West,” he said. “Denver shares many of the best characteristics of our established core markets and has become an attractive region for well-educated workers in knowledge-based industries that are driving the 21st Century economy. We look forward to growing our presence in the greater Denver area over time, through a combination of acquisitions and new development activity.”
Mill Creek’s Brian Wynne said his firm has dubbed the project Modera West Wash Park, consistent with its nomenclature at other new apartment buildings around town.
“It was really a no-brainer,” Wynne said. “We think it’s really unique to be in an urban environment, but near a tree-lined, walkable neighborhood.”
The seller in the deal, which closed Sept. 1, is the Colorado Visiting Nurse Association. Mill Creek’s lender is Fifth Third Bank. John Winsted with JW Cos. brokered the sale.
Mill Creek’s plans call for a brick and glass façade, 241 apartment units, underground parking garage, fitness center and rooftop pool. The architect is Davis Partnership and the general contractor is Martines Palmeiro Construction.
The seller, which operates an office on the property, will move out on Dec. 1 so the multifamily developers can begin demolition. The hope is to start handing out keys to tenants in January 2020.
Modera West Wash Park will compete with new residential construction on the south side of Speer, including MyBlock and Country Club Towers.
The complex also adds a new neighborhood to the Mill Creek map. The firm is leasing 275 units at Modera Observatory Park near the University of Denver, has two projects underway in RiNo and 200 more units in Cap Hill.
As of June 30, 2017, AvalonBay owned or held a direct or indirect ownership interest in 287 apartment communities containing 83,123 apartment homes in 10 states and the District of Columbia. Some 23 of those communities are under development and nine communities are under redevelopment.
The Company is an equity REIT that develops, redevelops, acquires and manages apartment communities in leading metropolitan areas in New England, the New York/New Jersey Metro area, the Mid-Atlantic, the Pacific Northwest, and the Northern and Southern California regions of the United States.
Mill Creek Residential develops, builds, acquires and operates high-quality apartment communities in coast-to-coast. Since its start in 2011, the firm has developed more than 25,000 apartment homes across 90+ communities and acquired more than 3,500 apartment homes in some of the nation's best apartment markets. In 2017, Mill Creek expects to deliver an additional 5,000+ homes to its portfolio.
Reported by AvalonBay Press Release (Sept. 5, 2017) and BusinessDen (Sept. 5, 2017)
For detailed information on Avalon Bay Communities and Mill Creek Residential and contact information for all key personnel in both corporate and all regional offices refer to The Directory of Multifamily Builders & Developers and Online Database.