JLL Capital Markets announced it secured a $49 million acquisition financing for the Aspire 7th & Grant, a newly constructed, luxury multihousing property with ground-floor retail located in the Capitol Hill submarket of Denver, Colorado.
JLL represented the borrower, an institutional fund, to secure the seven-year, fixed-rate loan through Northwestern Mutual Real Estate Investments.
The Aspire 7th & Grant apartments were completed in 2020 and total 178 studio, one- and two-bedroom units, averaging 882 square feet. The apartment units are currently 74 percent leased and the 3,898-square-foot attached retail is 47 percent leased, with the remaining commercial space currently available for lease. Units feature modern finishes, like high ceilings, oversized window and grand balconies, and high-end community amenities, including a sky terrace with an outdoor fireplace, chef-inspired kitchen with a dining area, 8th floor club area, rooftop business center, 2nd floor garden deck with a resort-style pool, state-of-the-art fitness center, yoga studio, indoor pet spa and grilling lounge.
The Class A property is situated in the Governor’s Park neighborhood of Capitol Hill at 670 N. Grant St., an area boasted for its premiere fining scene. Some of Denver’s most prominent restaurants led by renowned chefs are just steps away from the property. The property is also proximate to Speer Boulevard, Broadway and 6th Ave., Denver’s primary arteries, and allow access to Downtown Denver, Cherry Creek and Washington Park.
The Aspire 7th & Grant apartments are positioned in the densest submarket in Denver. According to JLL’s latest Multi-Housing Outlook, the Denver market held resilient, with today, rents around the same level as they were 18 months ago. For developers, opportunity is striking, with the report also stating that transaction activity is continuing upward momentum from Q4 2020, as investors acquired $1 billion of multi-housing assets in Q1 2021.
The JLL Capital Markets team representing the borrower was led by Managing Director Leon McBroom.
“This was an off-market acquisition and the property was still a ways from stabilizing to qualify as an agency financing,” says McBroom. “We were able to engage with insurance companies to underwrite and size proceeds based on stabilized metrics. As such, we were able to successfully secure the necessary acquisition financing that aligned with the borrower’s hold strategy.”
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge deliver best-in-class solutions for clients — whether investment sales advisory, debt placement, equity placement, or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.