Calibrate Real Estate is proud to announce the sale of 2444 S. York St., a 31-unit apartment building in the DU neighborhood of Denver, CO. After persevering through a failed transaction a few months ago due to a perceived environmental problem that proved to be a non-issue. A Phase I report recommended a Phase II with soil samples, but an uncertain economic outlook in the fall of 2022 lead to the first transaction’s demise. Calibrate encouraged the Seller to pay for a Phase II even though there wasn’t a Buyer waiting in the wings, because we knew that we would need to overcome this objection.
Thanks to a great friendship and familiarity with several different agents at Pinnacle Real Estate Advisors, we were able to get the property back under contract with Pinnacle’s out of state buyer on President’s Day weekend. The purchaser is a “family office” that brought new equity into the deal (not motivated by a 1031 exchange) and they were able to contribute a 54% down payment at closing! The Buyer was technically capable of buying the property all-cash, so assuming the existing loan balance with a 4.5-year remaining term at 3.55% interest rate was very attractive. This rate is, obviously, impossible to find in the current interest rate environment, and the loan balance allowed the Buyer to retain capital for near term unit renovations.
Calibrate Real Estate has consistently demonstrated that they are one of the most cooperative multifamily brokerage firms in Denver. It was a pleasure to work with Mike Krebsbach and Kenny Clarke at Pinnacle Real Estate Advisors. We appreciate their positive efforts in ensuring a smooth transaction, which we come to expect having worked with their brokerage company on many sales over the years. The building will be managed by BRC Management going forward.
