Centennial Land Purchased for Future Multifamily Development

An Indiana-based development firm has bought land outside Denver with plans for a multifamily development.

The Garrett Companies bought three parcels at 6901 South Havana Street in Centennial for $22.7 million, the Denver Business Journal. The 130,000-square-foot office building on the site previously served as offices for Centura Health, created by CommonSpirit Health and AdventHealth; the seller in the transaction was CommonSpirit Health, according to the Business Journal.

The Garrett Companies plans to build the Garrett Centennial Apartments, consisting of 368 units spread across 14 buildings on nearly 19 acres of land. The Garrett Centennial project would include amenities like a pool, spa, courtyard, playground, dog park and multiple grilling stations. An on-site clubhouse would boast a gym, a yoga studio, private work stations, a game room, a coffee lounge and a conference room.

The Garrett Centennial Apartments would rise in an area known as Midtown Centennial, which city officials hope to see transformed into a mixed-use neighborhood that could eventually serve as the city’s downtown, according to the Business Journals. City planners have outlined a long-term proposal to turn 800 acres of midcentury office parks and commercial developments into the new epicenter of the Denver suburb.

Earlier this month, Austin-based Buchanan Capital Partners, in partnership with Fort Worth-based real estate private equity manager Telis Group, announced its capitalization of the Centennial development in Buchanan’s second joint venture with The Garrett Companies.

Buchanan gravitated toward the Garrett Centennial project because it met “key criteria” including “an exceptional location in a top school district, discounted basis relative to recent comparable sales, dwindling supply pipeline and vertically integrated development partner with a differentiated unit mix,” Ford Albert, director of Buchanan Capital Partners, said. “Given Garrett’s attractive cost basis, [Buchanan Capital Partners] can conservatively underwrite lease-up rents at a significant discount to the submarket’s current rent levels.”

Construction of the Garrett Centennial Apartments isn’t the first time the three firms worked together on a multifamily development. Last year, The Garrett Companies, Buchanan Capital Partners and Telis Group collectively capitalized the Garrett Fillmore Apartments, a 196-unit multifamily project in Colorado Springs.

— Chris Malone Méndez