Big institutional money has snagged an early addition to the LoHi apartment construction boom.
The investment management arm of TIAA bought a 130-unit complex at the corner of Boulder and 16th streets last week for $46 million, Denver County records show.
Listing agent Terrance Hunt with ARA Newmark said Line 28 at LoHi’s proximity to Denver’s growing downtown office market is what put the property on the radar of institutional investors like TIAA, whose quarterly transaction volume is in the billions.
“You don’t always find big institutions like (TIAA) buying 130 units,” he said. “They recognize the long term viability of this asset at the base of the pedestrian bridge that connects you to downtown.”
TIAA, acting as TRPF Line 28 LLC, bought the apartments through TH Real Estate, an affiliate of the nonprofit’s investment management arm.
The seller is Holland Residential, which owned the property under the name Recap Holland Highland Bridge Investors.
The complex at 1560 Boulder St. includes sushi bar Mizu Izakaya. Hunt said that location – near LoHi favorites like Little Man Ice Cream, but in view of downtown – also drove the $359,000 per-unit price.
That number bests some other recent sales in downtown neighborhoods, like Via Apartments in Golden Triangle ($301,250 per unit) and Broadstone Cherry Creek ($340,314 per unit). But it doesn’t quite soar to Denver’s high watermark, a record $537,700 per-door sale last summer for the Joule, now called 1000 Speer, in Golden Triangle.
ARA Newmark pegs Line 28’s average apartment size at 698 square feet and average rent at $2,000 per month. Hunt said it was 5 percent vacant at the time the sale closed.
The Line 28 apartments, completed in 2012, were among the first for-rent buildings to rise in this section of LoHi, Hunt said.
“This was really the first true LoHi new apartment property,” he said. “The buildings immediately adjacent are all condos.”
And so Line 28 was a harbinger of more multifamily development to come, like nearby 2828 Zuni St. and Centric LoHi.