This Week's Denver Deal Sheet: First Building In Final Phase Of Sun Valley's $500M Redevelopment Completed
The Denver Housing Authority said it has completed Joli, the first building in the final phase of the Sun Valley neighborhood redevelopment.
The project is the third part of DHA’s effort to transform historically underserved and high-poverty Sun Valley into a mixed-income community with new housing, food options, parks and other services.
Located near 10th Avenue and the South Platte Regional Trail, Joli includes 82 affordable residences, with units ranging from one to five bedrooms, and seven live-work townhomes. The building will also house The Food Incubator, an initiative designed to provide entrepreneurial education to residents.
The three-phase redevelopment is partially the result of a 2016 Department of Housing and Urban Development grant of $30M to DHA. The Denver City Council also approved $10.3M in tax share-back financing for the project.
Phase 1 included the Gateway North and South housing developments, while Phase 2 included Greenhaus, a 129-unit low-cost multifamily project.
When all is said and done, the project is expected to cost between $500M and $600M, according to the city.
Phase 3 also includes Sol, a 169-unit mixed-income community, and Flo, a 12-story high-rise for residents 55 and older and people with disabilities. Sol is set for completion later this year, while construction on Flo is ongoing.
A ribbon-cutting ceremony is scheduled for March 7.
SALES
JLL Capital Markets arranged the sale of Pine Grove Crossing, a 127-unit assisted living and memory care community in Parker for an undisclosed price. A real estate private equity group sold the property to an affiliate of Meridian Senior Living, which will operate it on behalf of an institutional investor.
LEASES
Newmark reported six transactions from Jan. 25 to Feb. 8. They include a 29K SF industrial lease extension to Advance Stores Co. at Rocky Mountain Business Center in Aurora, with JLL as the tenant representative; a 22K SF office sublease to Fortis Bank at One Belleview Station in Denver, with Savills acting as the sublandlord representative; and a 22K SF office lease to Holmes Murphy at Terrace Tower in Greenwood Village, with CBRE representing the landlord.
FINANCING
JLL Capital Markets arranged a $333M recapitalization of eight NexMetro build-to-rent assets across Arizona, Colorado and Texas. The deal included $65.9M in preferred equity from Stockbridge and $206M in assumable agency financing. This follows an earlier recapitalization of four NexMetro properties, bringing the total portfolio value to $620M.
THIS AND THAT
Re/Max Holdings reported $72.5M in revenue for Q4, down 5.4% year-over-year, while adjusted earnings before interest, taxes, depreciation and amortization rose 1.6% to $23.3M. The company’s total agent count increased 1.2% to 146,627, although the combined U.S. and Canada agent count declined 4.8% to 76,457. Motto Mortgage franchises dropped 8.5% to 225 offices.
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Maria Empanada opened its fourth Denver-area location at 2730 E. Colfax Ave. in the City Park neighborhood. The 500 SF space seats 25 people inside and includes an outdoor patio. This marks the restaurant’s first expansion since the pandemic.
