Pinnacle Announces the Sale of Buchtel Park Apartments
Pinnacle Real Estate Advisors, LLC is pleased to announce the $46,250,000 sale of Buchtel Park Apartments, a 269-unit mid-rise garden style apartment community in Denver, Colorado. Located in the highly sought-after community of University Park at the corner of Buchtel Boulevard and Colorado Boulevard, Buchtel Park Apartments spans seven buildings and that were constructed in 1963 and 1971.
The Edwards Ethington Team and the Mitchell Krebsbach Team at Pinnacle Real Estate Advisors represented the seller, a local family who purchased the property in 1996 for $10.6 million as part of the Low Income Housing Tax Credit (LIHTC) program. Shortly after closing, the owners converted the affordable housing program units to market rate and have consistently maintained the property throughout their 21 years of ownership. They decided to sell given the exceptionally strong market fundamentals and in order to move their equity into several single tenant Triple Net (NNN) retail investment opportunities. The transition has enabled the family to reduce management responsibilities, defer capital gains, diversify the partnership holdings and substantially increase cash flow.
“The owners of Buchtel Park Apartments have had long-term success with the property,” said Tom Ethington, Principal of Pinnacle Real Estate Advisors. “They made a business decision to convert the equity held in Buchtel to focus on guaranteed, long-term leased, singed tenant assets. This will lock in the value application, diversify their portfolio, increase cash flow and significantly reduce their day-to-day management,” added Ethington.
RedPeak was selected as the winning bidder of Buchtel Park Apartments after the Edwards Ethington Team and Mitchell Krebsbach Team completed a comprehensive marketing campaign that reached over 5,300 investors nationwide and yielded over eighteen qualified offers. Their exceptional track record and strong market presence—along with their uniquely aggressive offer terms—all played a role in the selection of this buyer. RedPeak intends to invest time and dollars in this asset in an effort to continue raising rents to market.
“The amount of showings and offers that were conducted and received in such a short period of time of 3 weeks blew us away as brokers as well as our seller. We expected an incredibly high amount of interest in this asset given its value add potential and location however the sheer aggressiveness of the offers and their willingness to work with our seller’s 1031 exchange timing requirements was what took us a bit by surprise,” stated Michael Krebsbach, Senior Advisor.
The property is situated just 1.1 miles east of the University of Denver, a private university with just over 5,500 undergrad students and over 6,000 graduate school students. Colorado Boulevard boasts some of the most valuable real estate in the State of Colorado and is a primary north-south traffic corridor for the region. Cherry Creek Shopping Center is located just 3.9 miles to the North of Buchtel Park Apartments.