Skyline Rentals Ltd. Reaps About $20.8 Mil in Summit View Village Sale

GOLDEN, CO-Skyline Rentals Ltd., a local real estate company, has paid nearly $20.8 million to Fairfield Lunnonhaus, LP of San Diego for the 258-unit Summit View Village apartment complex in Golden, a suburb west of Denver.

The price was one of the highest ever paid for an apartment complex of this vintage. “On the face of it, a price of $72,807 per unit for a ’70s built apartment complex appears high,” Chuck Sweeney, the listing and selling broker told GlobeSt.com. But the property has several things going for it, says Sweeney, a broker with the Denver office of Hendricks & Partners.

First, Fairfield recently spent more than $2 million on the renovation. It rests in the foothills of the mountains, with the kind of views people expect from Colorado. And, it has easy access to Downtown Denver’s Central Business District from E. 6th Avenue.

The project was nearly 100% leased when sold, with rents averaging $1.08 per sf. Units average 832 sf, bigger than average. Also, the Colorado Department of Transportation has just completed access ramps form C-470–a beltway around a portion of the metropolitan area at Johnson Road, which runs by the property and serves as the main road into Golden. As an added amenity, the city is planning to build a golf course across from the project.

The buyer has received a $15.6-million loan carrying an interest rate of about 7.6% from Arcs Commercial Mortgage from the San Francisco area, Sweeney says. There were several all-cash offers for the complex, he says.

“It shows there is a strong market for low-density, older, rehabbed property,” Sweeney sums up.