Evergreen DevCo Sells 310 Units in Denver for $142M

Evergreen DevCo has sold the Outlook Clear Creek Apartments in Wheat Ridge, Colorado to Seagate Colorado Partners for $142 million. Located at 4040 Clear Creek Drive, the 310-unit new construction property was completed this year. The new ownership has rebranded the property as Clear Creek Crossing Apartments.

The development was the first in the 110-acre Clear Creek Crossing mixed-use development, a coveted location that overlaps three of metro Denver’s most supply-constrained submarkets, which include Wheat Ridge, Golden and Lakewood, according to Dave Martin of NorthMarq’s Denver investment sales team, who represented the seller in the deal along with Brian Mooney. SCL Health Lutheran Medical Campus, which is scheduled to open in 2024, will anchor Clear Creek Crossing.

On a sprawling 12.5 acres, Clear Creek Crossing Apartments has a mix of one- and two-bedroom floorplans in several two- and four-story buildings, and the units feature picket backsplashes in the kitchen, deep farm undermount sinks, spacious closets and walk-in showers. The property has one of the largest outdoor pool/recreation areas in the market.

Denver has been an attractive growth market for the last several years, and it did not lose its allure during the pandemic. Capital continues to hunt for apartment deals. In October NAV REIT JLL Income Property Trust has acquired Pinecone Apartments, a 13-building, 195-unit apartment community in the Denver suburb of Fort Collins. The property has historically strong occupancy, with a current availability rate of only 3%. Fort Collins is ranked third on La Salle Research & Strategy’s small apartment market analysis. The submarket benefits from a limited new construction pipeline, a low long-term vacancy rate of 4.3% and annualized apartment rent growth of 4% over the last 15 years.

And in September, Kennedy Wilson has expanded its Denver apartment portfolio with the purchase of Griffis Marston Lake, a 332-unit apartment complex, for $134 million. The purchase brings the firm’s total multifamily portfolio to 32,000 units. Kennedy Wilson purchased the property with $62 million of equity and a 10-year, $76 million loan at a fixed-rate of 2.7%. The $134 million purchase price does not include closing costs. The firm also plans to invest an additional $6 million to upgrade the interiors and common area amenities. Immediately following the transaction, the property is expected to add $5 million of initial net operating income.