Dealmaker: Transwestern Sells Apartments, Offices for $51M

Tucker, Michael

August 04, 2016

Transwestern, Houston, marketed Highlands Park Apartments in Denver and West Garrett Place, a two-building office property in Annapolis, Md. The properties sold for $52.1 million combined.   

Grand Peaks Properties, Denver, acquired the 125-unit Highlands Park Apartments for $40.2 million, or $322,000 per unit. Transwestern Senior Vice President Tom Wanberg and Broker Associate John Blackshire represented the sellers, developer Bruce Heitler and CorePower Yoga founder Trevor Tice.

"With its close proximity to downtown and the Lower Highland submarket, Highland Park Apartments will continue to benefit from solid long-term rental demand, high employment and population growth," Blackshire said.

Built in 2012 at 2424 West Caithness Place, Highland Park Apartments includes a 6,000-square-foot CorePower yoga studio and 6,000 square feet of office space on the ground floor. 

Blackshire said Grand Peaks plans to achieve higher rents by marketing to environmentally conscious renters and adding eco-friendly amenities such as a bike repair lounge and recycling valet. 

In Annapolis, Douglas Development Corp., Washington, D.C., purchased West Garrett Place, two contiguous office buildings totaling 71,000 square feet, for $11.9 million. Transwestern Managing Director Mark Glagola brokered the transaction. 

"This was a very strategic acquisition by Douglas Development in the historic West Street Corridor of Annapolis' central business district," Glagola said. "This burgeoning submarket is difficult to break into as a result of the restrictions on new development to preserve the character of original buildings."

The 93 percent leased property recently underwent an $800,000 capital improvement program and Glagola called the property well positioned for rent growth. Glagola said Douglas Development plans to reposition the building to take advantage of Annapolis' retail and office growth.

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