Penterra Plaza Partners LLC , a joint venture of the CEO of Kentwood Real Estate and an oil executive, has purchased the 32 remaining luxury residences at Penterra Plaza in the Denver Tech Center.
The seller was Simpson Housing LLLP . The acquisition, completed on Tuesday, encompasses a total of 60,573 finished square feet, including nine penthouse units, 1,724 square feet of street-level retail space, and the www.PenterraPlaza.com domain name.
The exact purchase price of the multi-million-dollar deal of the remaining high-rise units at Penterra Plaza was not disclosed. The purchase was made by a joint venture formed by Peter Niederman, CEO of Kentwood Real Estate, and Frank Hutto, an oil industry executive and investor. The acquisition was brokered by Chuck Gargotto, a broker at Kentwood Real Estate’s DTC office, on behalf of SHLP. Financing was arranged through Peter A. Smith, an assistant vice president of Steele Street Bank & Trust.
“This was a great opportunity to acquire truly remarkable residences in a building showcasing outstanding amenities in a Class A location,” said Niederman. “Our initial plan includes selling some of the units through Kentwood Real Estate and leasing some through DenverRental.com while the rental market remains strong. Penterra Plaza is among the most desirable luxury high rises in the region and offers a care-free lifestyle complimented by full concierge service, a business center with conference room, a state-of-the-art fitness facility, and extraordinary views.”
Stars align for buying opportunity
Given the shortage of “for-sale” units on the market and the strength of the rental market, Niederman believes the timing is perfect. “I couldn’t be more excited about this,” said Niederman. “These are never-lived in before units. They have never been occupied. I would have been much more nervous if we were doing a deal like this two years ago. With an improving economy, the strength of the rental market, and the shortage of home supply, I truly think our timing could not be better.”
Units that are for sale are priced from $300,000 to $1 million. They range in size from 1,111 square feet to 2,826 square feet. Previously, the units had been listed from about $300,000 to about $1.55 million. Monthly rents range from $1,600 to $4,000. The exact mix between for-sale units and rentals is still being determined.
Penterra Plaza was built in 2003 and includes 266 residential units, a seven-story office building, a three-story underground parking garage, and 21,310 square feet of retail space. The residential tower includes a community sun terrace, a game/television room, and a guest suite for visitors. The high-profile venue features a DTC location near light rail and the dining, as well as shopping and entertainment along the southeast corridor.
The luxury residences include gourmet kitchens appointed with slab granite countertops and stainless steel appliances, and sumptuous master suites and baths showcasing walk-in closets and jetted tubs. Each residence offers dramatic views, including the Rocky Mountains to the west, Cherry Creek State Park and Reservoir to the east, and Denver’s skyline to the north.
The retail space on the high-rise development’s first floor includes a McCormick & Schmick’s Seafood Restaurant. The retail space purchased in the acquisition will house DenverRental.com, a full-service leasing assistance and property management company.
SHLP, the developer of Penterra Plaza, is a fully integrated real estate firm that primarily focuses on multi-family property management and development.
“We are excited to provide financing for this terrific opportunity and to be associated with Mr. Niederman, Mr. Hutto, and Penterra Plaza Partners, LLC,” said Brian Wilkinson, president of Steele Street Bank & Trust.
For more information on the rental units, contact Cindy Lopez of DenverRental.com at 303-682-3900 or email at info@DenverRental.com. Interested parties can view the rental units online in mid-March by visiting this link.
Sales are being handled by Gargotto at 303-886-5303, email cgargotto@DenverRealEstate.com, and Larry Hotz at 303-877-9344, email lhotz@DenverRealEstate.com.
To see resale units available at Penterra Plaza, please visit this COhomefinder.com link.
Contact John Rebchook at JRCHOOK@gmail.com