The insurance company is a subsidiary of Prudential Financial Inc.
PREI also signed a pre-sale contract to acquire the to-be-constructed Jefferson Park at Lowry Phase II.
When the second part of the sale is completed, the total transaction will rival JPI's record $78.7 million sale of Jefferson at Meridian in 2001, according to Tim McEntee, president and managing partners of JPI's Central Division.
The Lowry sale is the first major multifamily real estate sale in the Denver area since the terrorist attacks of Sept. 11. McEntee says the price of the project was discounted by more than $1 million after Sept. 11.
JPI broke ground on the second phase and it should be completed within 12 to 15 months. About 25% of the 204 units in the second phase will be townhome-style apartments.
JPI will complete the construction before Prudential buys it. The sales price for phase II wasn't revealed, but it is expected to be in the $26 million to $28 million range.
"The fact that Jefferson Park at Lowry Phase II pre-sold before construction even began underscores the fact that good infill locations and luxury multifamily will sell, even during a recession," McEntee says.
When construction of Jefferson Park at Lowry Phase II is completed, JPI will have developed three phases at the site of the old Lowry Air Force Base in east Denver. Thefirst of these, Jefferson Estates at Lowry, sold in 2000 to AMLI Residential.
Jefferson Park at Lowry Phase I and Phase II are the second and third JPI developments at the site. Jeff Hawks and Doug Andrews of Grubb & Ellis sold all of the communities.
Since 1994, JPI has built and sold more than 2,500 units in the Denver area.
With completion of this current sale, JPI's sole multifamily holding in Denver is Jefferson at Aspen Ridge, now under construction and opening in the summer of 2002. JPI anticipates starting deals in LoDo and the Denver Technology Center area in 2002 and is actively pursuing additional infill/urban locations to be built.
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