Tenants of Zia Sunnyside have a new landlord.
Completed in January 2021, the 434-unit apartment complex at 4055 Inca St. was sold last week to San Antonio-based Kairoi Residential for $161 million, or $371,000 a unit. David Potarf, Dan Woodward, Matt Barnett and Jake Young of Walker & Dunlop represented the seller in the transaction.
“It was on the market for a little while,” Potarf said. “We found a local group to buy it, understands the quality location and product and how it’s an up-and-coming area. North LoHi is how I would kind of describe it.”
Its developer, Golden-based Confluence Cos., sold the entire project, which sits on 2.33 acres of land and has 295,661 square feet of rentable space spread across two buildings. There are two retail tenants, a cafe and yoga studio, both on leases of around 10 years. The average apartment at the complex is 681 square feet, according to the listing brochure. It is 95 percent leased.
Zia occupies about a city block’s worth of space and sits adjacent to a pedestrian bridge leading to RTD’s 41st and Fox commuter rail station and the Fox Island neighborhood.
“The location is really the story,” Potarf said. “It’s that first light rail stop, and then that whole Fox Park redevelopment that’s going to go on just north of the property will be walking distance to where the future World Trade Center and all kinds of retail and offices are going to be. So, long term, it’s going to be getting better and better and better.”
The complex broke ground in 2018 and originally was set to be split between 314 apartments and 120 condos. That plan was scrapped in 2020 in favor of all apartments.
“There were zero buyers,” said Tim Walsh, president of Confluence Cos. “We had listed starting a year before the COVID pandemic, had virtually no traction and then COVID happened and the market completely dried up.”
Today, the condo market continues to be quiet, Walsh added.
“The sad reality is, it’s still expensive to build condos in Colorado because of all the frivolous construction defect claims that occur,” Walsh said. “No matter how much attention to detail you pay and as close to perfect as you can get, on a project there’s always going to be lawyers and groups that try to find issues because that’s their business model.”
Kairoi lists 12 apartment complexes in the Denver area on its website. The firm is building another at 1150 E. Colfax Ave., the former site of a Ramada hotel.
Kairoi was also pursuing a residential tower at the edge of LoDo. But the property’s owner told BusinessDen last week that his ground lease deal with the company had been terminated.