Chicago-based apartment REIT re-enters Denver with $135M Uptown buy

The 12-story Alexan Uptown apartment complex at 1935 Logan St. in Denver sold for $134.97 million. (Thomas Gounley)

One of the nation’s largest owners of apartment units has re-entered the Denver market after less than three years away with a $134.97 million buy in Uptown.

Chicago-based real estate investment trust Equity Residential purchased the 12-story Alexan Uptown complex at 1935 Logan St. on Tuesday, according to county records.

The property was sold by Trammell Crow Residential, which completed the 372-unit project last September, according to the company’s website.

As of Thursday morning, Equity Residential had updated its online portfolio to include the Logan Street property and indicated that the complex is being renamed Radius Uptown. The portfolio does not include any other Denver properties.

According to the complex’s website, studios start at $1,523 a month, while one- and two-bedrooms start at $1,738 and $2,703, respectively.

As of the end of June, Equity Residential owned or was invested in 304 properties with 78,645 apartment units, according to an earnings report. The properties primarily are located in Boston, New York, Washington D.C., Seattle, San Francisco and Southern California.

Only Memphis-based Mid-America Apartment Communities and Greenwich, Connecticut-based Starwood Capital Group own more apartment units than Equity Residential, according to the National Multifamily Housing Council.

Equity Residential is familiar with Denver, but hasn’t had any holdings in the Mile High City since January 2016, when the firm sold 18 apartment complexes in Colorado to Starwood for $1.37 billion as part of a larger $5.3 billion deal.

Equity Residential CEO David Neithercut said last month in an earnings call that the company was under contract for two “recently built properties in close-in, highly walkable neighborhoods of Denver.” He said the company’s exit from the market in 2016 was “not market-related, but rather portfolio-related.”

“We’ve continued to carefully watch Denver, because it possesses many of the characteristics we look for in one of our markets, that being a highly educated workforce, strong growth and high-paying jobs and relatively high cost to single-family housing as a multiple of income,” Neithercut said last month. “And we think that with the new supply that has recently been and will soon be brought on line in Denver, there will be additional attractive opportunities to acquire assets that meet our investment criteria, as we rebuild a critical mass in the market.”

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