(Read more on the multifamily market.)
BOULDER, CO-Denver-based MGL Partners and money partner Legacy Capital partners of Lyndhurst, OH have formed a joint venture to develop the Residences at Boulder Creek, an age-restricted apartment community here that will be hewn from an existing development. Known as Boulder Good Samaritan Village, the existing development includes a nine-story, 80-unit residential tower and an attached one-story wing.
The 2.1-acre property is located at 2525 Taft Dr. The JV, formed in May, expects to close on the property in August. The seller is Evangelical Lutheran Good Samaritan Society. The purchase price has not yet been disclosed.
The redevelopment plan calls for the nine-story, 80-foot tower to be gutted and refinished with larger units, and for the one-story building to be razed and replaced with a pair of three-story buildings with 63 additional units above ground floor parking. In addition, the façade of the tower will be re-skinned, the number of size of windows will increase.
The finished project will include 117 apartment homes for people over 60 years of age, 20,000 sf of common area and commercial/retail space. Amenities are slated to include a fill-service restaurant, a salon and spa, PrimeFit Gym (the Brain Fitness Program from Posit Science), a casual bistro/bar, a travel services boutique, a concierge a lobby and lounges.
A company source declined to speculate on rents, saying the company will evaluate the market when the product gets closer to delivery. Rents for similar product in the area range from $2,000 to $4,000 per month.
Demolition of the existing low-rise structure is scheduled for the end of the year. Project completion is slated for spring 2009. Legacy Capital Partners is putting up $7 million of the $7.9 million of equity that is being invested in the redevelopment. The operator will be Seattle-based Leisure Care, which already runs three other communities in Colorado.
MGL principal Greg Glade says the luxury nature of the product it is creating does not currently exist in Boulder. Moreover, "with Boulder's existing 55-foot height limit on new development, we have forged a position as the only community to be able to offer…views of the adjacent Flatiron Mountains in our 80-foot tower," Glade says. "What we will offer does not currently exist in Boulder, one of the top retirement destinations in the nation, and it cannot be replicated by future development."
The development's existing residents have been relocated with help from both MGL and Evangelical Lutheran Good Samaritan Society. Good Samaritan is selling in lieu of completing an estimated $6 million in work that would have been necessary just to keep it functioning.
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