Seattle company acquires Denver apartment building for $40.5M

A 105-unit apartment building in Denver’s Lower Highland neighborhood sold at the end of August for a hefty price.

Seattle-based Timberlane Partners, a real estate investment company, purchased the apartment building at 2828 Zuni St. on Aug. 30 for $40.5 million, records show.

“We are thrilled to add 2828 Zuni to our portfolio, as it represents a prime, well-located asset with significant potential for improvements,” said Dave Enslow, Timberlane co-founder and principal, in a statement.

The 10-year-old apartment building offers studio, one-bedroom and two-bedroom units. Building amenities include a fitness center, outdoor grilling area and garage parking. Timberlane expects to “significantly” enhance the apartment’s common areas and individual units, the company said.

2828 Zuni St. last sold to an institutional investor in 2015 for $32 million, or more than $304,000 per unit, according to public records.

Timberlane added 2828 Zuni St. to its portfolio due to the property’s proximity to “employment and quality of life hubs,” Enslow said. The apartment is located near North Speer Boulevard and Interstate 25 and within walking distance of Zuni Street Brewing Co. and restaurants like Linger and El Five.

2828 Zuni St. was purchased through Timberlane’s closed-end real estate fund, Timberlane Acquisition Fund (TAF). The $100 million fund, which closed in mid-April, is backed by ultra-high-net-worth investors, family offices and registered investment adviser firms. It is used to acquire multifamily assets.

The purchase of this LoHi apartment and TAF comes as the multifamily market struggles with the high cost of financing and as many real estate investment trusts are investing less capital into the market. TAF-funded acquisitions as of mid-April were secured at an estimated 30% discount to replacement cost, Timberlane told Denver Business Journal’s sister publication.

Founded in 2011, Timberlane has purchased and built more than $1 billion worth of real estate across the West Coast and Mountain West regions, according to the company.

Timberlane plans to continue expanding its portfolio across the Denver metro, Enslow said.