Apartment complex developer pays $27.5M for full city block in Denver’s RiNo neighborhood

The San Francisco-based multifamily developer, which spent $66 million on land along Brighton Boulevard across two deals in 2018 and 2019, made another big buy last week.

Apartment complex developer pays $27.5M for full city block in Denver’s RiNo neighborhood

Carmel Partners has increased what was already a massive bet on RiNo.

The San Francisco-based multifamily developer, which spent $66 million on land along Brighton Boulevard across two deals in 2018 and 2019, made another big buy last week.

Acting as CP VII Blake LLC, the firm paid $27.5 million for the city block formed by Blake and Walnut streets, and 33rd and 34th streets.

The block is 2.3 acres, according to property records, making the deal worth about $275 a square foot. The block is home to a number of industrial buildings.

The lots were sold by a number of entities associated with Jeff Oberg’s REA Development Corp. He purchased most of the block between 2015 and 2017, then secured the last parcel in January for $1.7 million. In total, he paid $11.96 million, or about $120 a square foot for the land.

Carmel hasn’t submitted any development plans to the city for the block it purchased. But Oberg secured certificates of demolition eligibility for all the structures earlier this year, paving the way for redevelopment.

The parcels are zoned for up to five stories but are within the 38th and Blake zoning overlay district, which allows developers to build taller than that if they meet certain requirements regarding income-restricted housing.

Oberg could not be reached for comment Thursday. Carmel Partners did not respond to multiple requests for comment.

In 2018, Carmel paid $30 million for a large site in the 3200 block of Brighton Boulevard and the 3300 block of Arkins Court. The firm is currently building one large apartment complex there called Drivetrain, and has proposed a second one called Drivetrain II.

In 2019, meanwhile, Carmel paid $36 million to buy the large parking lots at 3800 and 3900 N. Brighton Blvd. from Pepsi, which has a bottling facility across the street. It has yet to break ground on projects there.

Carmel has also developed apartment complexes elsewhere in Denver. The company recently sold its 403-unit The Henry complex at 201 E. Mississippi Ave. for $183.5 million.