Apartment complex by Mile High fetches $145M; no residents yet

The Luxe at Mile High apartment complex sold for $145 million. Photo by Thomas Gounley.

One more massive multifamily deal — this one a bit atypical — snuck in before the champagne and fireworks.

On Dec. 31, the yet-to-open Luxe at Mile High complex at 3200 W. Colfax Ave. sold for $145 million to OZH Holding 2 LLC, according to public records.

The purchasing entity lists an office address corresponding to an Industrious coworking location in Bellevue, Washington.

The complex right by the Federal Boulevard/Colfax Avenue interchange has 382 units, according to Embrey’s website, making the deal worth $379,581 a unit. It was sold by San Antonio-based Embrey, which purchased the 4-acre site in December 2016 for $8.13 million, records show.

Most multifamily sales take place after residents move in, when the developer can show prospective buyers strong leasing numbers. That wasn’t the case at Luxe, however. The complex lacks a certificate of occupancy. A representative who answered the complex’s phone number Thursday said the first residents are expected to move in come February.

Newmark Knight Frank brokers Terrance Hunt and Shane Ozment represented the seller. Hunt, who declined to comment on the buyer, said the seller hired the pair after being contacted by interested parties.

“The original plan was to stabilize it and sell it down the road, but this came together,” he said.

Rents at Luxe at Mile High range from $1,635 a month for a 585-square-foot one bedroom to $3,125 for a 1,385-square-foot two bedroom, according to the complex’s website, which advertises tenants can get up to two months free.

Embrey’s local multifamily development portfolio also includes apartment complexes Encore at Boulevard One at 7180 Lowry Blvd. in Denver, Westerly at 8510 S. Oak Circle in Littleton and Canyons at Saddle Rock at 6850 S. Versailles Way in Aurora.

Luxe’s $145 million price is the fourth-highest multifamily sale of 2019, Hunt said. No. 1 was the $304 million sale of Union Denver, which also included a substantial retail component. No. 2 was the $177 million sale of three adjacent apartment complexes in unincorporated Arapahoe County, and No. 3 was the $172 million sale of Savoy at Dayton Station at 3645 S. Dallas St. in Aurora.

Hunt, who also represented the seller in the No. 2 and No. 3 sales, said he expects the hot market to continue into 2020.

“I think it should be a lot more of the same,” he said. “Tremendous interest.”

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