Five Points Multifamily Project Being Repositioned To Market Rate
by John Rebchook, Colorado Real Estate Journal
Kyle Malnati is a big fan of the nonprofit Hope Communities.
Malnati, principal of Madison Commercial Properties Ltd., not only represents Hope Communities’ real estate needs, but also volunteers at the group, whose mission includes providing affordable housing to the poor and disenfranchised.
Recently, Malnati was the only broker involved in the $1.5 million sale of the Booker T. Washington apartments, a 33-unit project at Glenarm Place and 29th Street.
“It really is the Five Points area,” Malnati said. “I don’t think you need to shy away from saying something is in Five Points.
The buyers are very bullish about Five Points and are buying a lot of properties in the 80205 ZIP code.” The buying entity, Booker T LLC, is a group of local investors. The sales price equates to $45,454 per unit, at $78.71 per square foot. The units in the three-building project each have one bedroom. The mix is 18 one-bedroom units; 12 two-bedroom units; and three, three-bedroom units.
Malnati believes the oldest buildings in the development were built around the turn of the century and the newest was built in 1929. City records show what clearly are the oldest buildings being constructed in the 1950s, but Malnati is sure that is inaccurate. Often, records reflect a sale that took place at that time, rather than when it was built.
The buyers plan a major renovation, Malnati said.
‘It’s always an interesting conversation when a building moves from being affordable housing owned by a nonprofit to a market-rate building in the priv ate sector.’ – Kyle Malnati, Madison Commercial Properties Ltd. “It’s always an interesting conversation when a building moves from being affordable housing owned by a nonprofit to a market- rate building in the private sector,” Malnati said. “The new owners plan a very large, significant renovation. They are going to gut the units and turn them into really nice units. They are totally repositioning them in the marketplace. This also is a very good deal for Hope Communities. This is a very small asset for them.”
Indeed, this transaction represents a business decision for Hope Communities.
“They are in the process of selling their smaller assets and re-investing the proceeds into larger, more manageable units that offer economies of scale and make more sense for them.”
The lenders on this deal were Ryan Cowles and Chris Walters of Steele Street Bank & Trust and the title insurance was handled by Leigh Renfro, Colin Snody, Scott Bennetts, John Freyer Jr. And Sherri Goldstein of Land Title Guarantee