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Zocalo sells Cadence at Union Station

Highlights:

  • New apartment tower at Union Station selling.
  • Cadence Union Station has 219 units.
  • It was developed by Zocalo Community Development.
Cadence.

Cadence.

 Denver-based Zocalo Community Development and its Iowa-based partner, sold the 219-unit Cadence Union Station apartment building, officials announced today.

The buyer of Cadence, the first multifamily project to open in Denver’s emerging Union Station neighborhood, is an institutional client of Houston-based Invesco Real Estate. The sales price was not released, but records show it sold for $70 million.

Zocalo’s joint venture partner on Cadence is Principal Real Estate Investors, based in Des Moines.

Cadence, which welcomed its first residents in January, is already 20 percent leased.

The property was marketed to a small set of select buyers interested in owning the property for the long-term.

“We had a distinct advantage by being the first to build in the Union Station neighborhood, acquiring what’s arguably the best location and building an asset that we believe will show itself to be one of enduring value,” said David Zucker, Principal of Zocalo Community Development. “Invesco’s focus on the strength of Union Station, the location of Cadence and its quality are aligned with our development ethics,” Zucker continued.

“We sense in Invesco a shared commitment of stewardship, making them an apt purchaser of this incredible asset,” he added.

Zocalo will continue to manage and lease the property, which features  amenities including a 13th story rooftop pool and fitness center and a community jazz room, complete with baby grand piano and original, classic jazz album artwork.

“These features and community-creating spaces make Cadence a wonderfully unique property, immediately distinguishable for its character and quality,” said Susan Maxwell, Zocalo partner and director of real estate at Zocalo. “It’s an honor to continue to manage what we believe is Denver’s finest high-rise apartment for Invesco.”

The LEED Gold-registered building is located in the heart of the 20-acre Union Station redevelopment, which includes a 22-bay underground bus terminal, eight-track commuter rail station and the renovation of the historic Union Station, all of which are scheduled to open in July.

Cadence is equidistant between two sets of light rail tracks, only 250 feet from the station and a 30 second walk to the Denver International Airport rail line, where (once it opens in 2016), travelers will ultimately check their bags and pick them up at their final destination.

Cadence residents are also minutes by foot, bike or bus from some of the most exciting and sought-after restaurant districts in the country. The popular free Mall Shuttle also offers access to virtually all of downtown in only minutes.

“Invesco’s investment in Cadence underscores the transformational impact that the redevelopment of Denver Union Station into the multi-modal transportation hub will have for the entire Rocky Mountain region,” said Tami Door, president and CEO of the Downtown Denver Partnership.

“This transaction confirms what many developers have known for some time – an investment in Denver Union Station is a once in a lifetime opportunity that can’t be missed.”

Principal Real Estate Investors’ Green Property Fund provided the equity for the project.

This is Principal and Zocalo’s second of three joint ventures.  The first, Solera, sold in 2011 for what was then the highest price per unit in the state’s history.

In three months, the partners’ third joint venture will start at the northeast corner of Steele and First Avenue in Cherry Creek North.

Principal’s Green Property Fund focuses on the development of LEED properties.

Cadence, Zocalo’s fourth LEED property, delivers on Zocalo’s commitment to greater sustainable design and development by offering features like the Velo Room, a complete repair shop for bikes, skis and snowboards, one-to-one bike-to-auto parking, a focus on indoor air quality and heating, cooling and lighting system that will likely reduce resident utility costs by 50 percent.

Cadence is the fourth LEED multi-family project developed by Zocalo in Denver.

The company’s other high-rise apartments include 2020 Lawrence, a 231-unit development, in Denver’s Arapahoe Square neighborhood, and Solera, a 120-unit luxury project, which sold for a record price in October 2011.

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Have a story idea or real estate tip? Contact John Rebchook at  JRCHOOK@gmail.com. InsideRealEstateNews.com is sponsored by Universal Lending, Land Title Guarantee and 8z Real Estate. To read more articles by John Rebchook, subscribe to the Colorado Real Estate Journal.