After just a year and half, a developer has sold the building he designed and built.
Chris Fulenwider last week sold a year-old Cap Hill apartment building at Emerson Street and 8th Avenue.
Illinois-based Inland Real Estate Group paid $11.5 million for The Emerson Lofts apartments, a 42-unit apartment building.
FarrellRES broker Frank Farrell and Berkadia broker John Laratta handled the deal on behalf of seller CF Studio.
“Emerson Lofts is located in the hottest submarket in Denver – there is no better apartment market for investment,” Farrell said. “It’s popular with renters because it’s close to downtown. Whether you look at downtown as a place for nightlife, entertainment or your job, it’s very convenient.”
Fulenwider – who is also the building’s architect – said he had been working on the project for about two years before opening it to its first tenants in July 2013.
The three-story building has 31 one-bedroom apartments, 10 two-bedrooms and a single three-bedroom unit. Most of the building’s tenants are young professionals, Fulenwider said, and it’s fully leased at about $2.60 per square foot.
Those lease rates overshot Fulenwider’s own estimates for the project. His initial plan was to keep Emerson Lofts as a long-term investment, but he listed it last summer to capitalize on a hot apartment sales market. The final sales price came to just less than $274,000 per unit.
“The market said the time was right,” he said.
Emerson Lofts made at least three Denver-area acquisitions for Inland over the past year. Farrell said the company popped on his radar after going on a $50 million shopping spree just before Emerson Lofts hit the market.
Last April, Inland paid $43.5 million for a 263-unit Aurora apartment complex. And In June the company bought the Waneka Marketplace shopping center in Boulder for almost $10 million.
Inland representatives did not return phone calls seeking comment on the Emerson Lofts acquisition by press time.