The Elaine Apartments

The Elaine Apartments
The Elaine Apartments

1424 N Pennsylvania Ave., Denver, CO

The Elaine Apartments

23 units 
Redevelopment
Date Acquired: December, 2020
Date Sold: October, 2022
Status: Executed, Stabilized & Sold

The Elaine Apartments is a 23-unit pre-war building located in Denver’s Capitol Hill neighborhood. Built in 1926 and situated on a quaint tree-lined street, The Elaine exemplifies the true historic charm of Capitol Hill. ZS implemented a substantial rehabilitation program, renovating common areas, units and building systems. ZS incorporated a blend of both modern and classic elements while maintaining the quintessential allure of Capitol Hill and the timeless architecture of the pre-war property. ZS closed on the property for approximately $4.1M in December, 2020 and completed the project ahead of schedule for approximately $5.1M. ZS sold the property in October, 2022 for $6.9M, representing a gross IRR of approximately 27% and equity multiple of 1.55X in 21.5 months. 

The Ernest

The Ernest Apartments from ZS Capital Partners
The Ernest

661 N Pearl St., Denver, CO

The Ernest

11 units
Redevelopment
Date Acquired: April, 2021
Status: Executed and Stabilized 

The Ernest is an 11-unit property located in the bustling Governor’s Park neighborhood of Denver, Colorado. Just two blocks from the park and a short walk to Trader Joe’s and 6th Ave. restaurants and shops, the property offers an amenity rich location. The building’s ivy façade, quiet street and boutique nature are just some of the reasons why residents are happy to call the Ernest home. ZS has fully executed the value-add business, substantially renovating all the building units and interiors. ZS has drawn inspiration from the neighborhood and its rich history for its renovation plan and the property was fully upgraded and stabilized with 14 months of acquisitions, ahead of schedule and on budget.

Lyric No. 39

Lyric 39
Lyric No. 39

4390 W 39th Ave., Denver, CO

Lyric 39

39 units + 4,200SF of retail
Mixed-Use New Development
Date Acquired: January 2022
Status: Complete

Lyric No. 39 is a new construction, 39-unit property located on the southeast corner of 39th Ave. and Tennyson St. in the Berkeley neighborhood of Denver. The 6-story elevator property is comprised of 39 luxury residences (16-2BR, 13-1BR and 10-ST) with 4,200 sf of ground-floor retail along Tennyson St. and 44 enclosed parking spots. Abundant light and views, modern finishes and efficient layouts along with a thoughtfully curated lobby, common areas and roof terrace make this property one of the most desirable multifamily residences in the Berkely neighborhood. Of the 39 units, 25 have outdoor space, further elevating desirability from a renter perspective. Berkeley’s vibrant retail corridor along Tennyson Street provides residents with easy access to some of Denver’s best dining, shops and entertainment options. The property is a 10-minute drive from downtown Denver and adjacent to both I-70 and I-25, with easy access to Boulder and the mountains.

Wash Park Supply

300 E Alameda
300 E Alameda
A rendering of the future Wash Park Supply
Wash Park Supply

300 E Alameda Ave. Denver, CO

300 E Alameda

20,000SF
Renovation
Date Acquired: May, 2022
Status: In progress

Wash Park Supply is a retail center located in Denver’s West Washington Park neighborhood. Built in 1962 as a Safeway grocery store, the property was most recently home to a gym and three restaurants and currently sits vacant. Located on the southwest corner of Alameda Ave. and Logan St., the highly trafficked center will be renovated and repositioned to accommodate a variety of new retail offerings. The renovation is expected to be completed in Q4 2022 and retail stores are slated to open as early as Q2 2023. With several leases currently in negotiation, the property is generating significant interest from a wide variety of users.

Vacant West Wash Park retail property sells for $8M

Wash Park Supply

A vacant retail building at the edge of West Wash Park has sold.

Elkco Properties, which was founded in 1985, and the recently-formed ZS Capital Partners paid $8.3 million last week for the 20,000-square-foot building at 300 E. Alameda Ave., which was originally built in 1962 as a Safeway and has since been divided into four units.

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Newly-Formed Investment Firm Acquires First Retail Property with ELKCO Properties

300 E Alameda

Veteran real estate investors Spencer Pariser and Derek Conn have announced the merger of their respective firms, Strat Ventures and Zeme Capital. Now operating under ZS Capital Partners, the new firm, in partnership with ELKCO Properties, recently closed on the acquisition of 300 East Alameda Ave., a 20,000-square-foot retail center in the heart of Denver’s West Washington Park neighborhood, in an off-market transaction for $8.3 million.

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Strat Ventures and Zeme Capital Acquire Six-Story Mixed-Use Property for $20.4M

Lyric 39 at night

Strat Ventures and Zeme Capital Acquire Six-Story Mixed-Use Property for $20.4M

Purchase of Lyric No. 39 Marks First Partnership Between Firms

DENVER  (Jan. 27, 2021) – Real estate investment firms Strat Ventures and Zeme Capital recently closed on the acquisition of Lyric No. 39, a six-story mixed-use development in Denver’s Berkeley neighborhood, for $20.4 million. The transaction marks the first partnership between the firms and first deal for Zeme Capital, founded by Managing Principal Derek Conn. Lyric No. 39 is Strat Ventures’ fourth investment in Denver in 13 months and largest to date.

“Lyric No. 39 provides a unique opportunity for residents and retailers to be in the heart of the Berkeley neighborhood,” said Spencer Pariser, founder and CEO of Strat Ventures. “We specialize in identifying assets that carry an outsized potential for success, and Lyric No. 39 undoubtedly meets all our investment criteria. We’re excited to make a lasting impact on this neighborhood for years to come, delivering a high-quality differentiated product on such a prominent corner in a growing Denver neighborhood with strong renter demographics.”

Located on the southeast corner of 39th Avenue and Tennyson Street, Lyric No. 39 offers 39 high-end studio, one-bedroom and two-bedroom apartment homes. The building includes 4,185 square feet of ground-floor retail, a rooftop terrace, structured parking for residents, modern and tasteful finishes and appliances, and unobstructed views of the Rocky Mountains and downtown Denver. The unit mix was meticulously designed to ensure larger-than-average unit sizes, which include double vanities in every primary bathroom and washers and dryers in each unit. Additionally, 25 of the 39 units have their own private outdoor space.

“This is the first of many transactions for Zeme Capital, and I’m honored to work with such great partners,” said Conn. “Our partnership plans to hold the asset for the long term as we believe in the Berkeley neighborhood’s continued strength as a magnet for new and existing Coloradans. This neighborhood is less than ten minutes from downtown Denver with accessibility to both I-70 and I-25. Its walkable retail district along Tennyson Street is hard to find outside of the CBD and provides residents with a variety of dining, shopping and entertainment options.”

Despite the popularity of the neighborhood, the supply of multifamily housing in Berkeley is limited. The concentration of multifamily construction in downtown Denver, combined with the zoning constraints in and around Tennyson Street, have directly impacted growth in the area. Lyric No. 39 is one of the few new multifamily developments in Berkeley.

Pariser and Conn were quick to seize this unique off-market opportunity. The two have known each other for years and have found a strong working relationship based on complementary skillsets and shared values. Both of their firms are rapidly expanding and exploring multifamily, industrial and retail opportunities in the Front Range of Colorado.

In 2021, Strat Ventures acquired The Elaine Apartments at 1424 Pennsylvania Ave., The Ernest at 661 North Pearl St. and 335 North Sherman St. Strat’s portfolio is now comprised of 107 multifamily units in Denver. Conn recently founded Zeme Capital following his tenure at Etkin Johnson Real Estate Partners, which culminated in the complete disposition of assets and associated winddown of the organization in 2021. Conn was involved in more than $1 billion worth of transactions for the company over the past three years.

Securing a three-year, floating-rate, non-recourse bridge loan through First Bank for the borrowers, the JLL Capital Markets team was led by Senior Managing Director Eric Tupler and Managing Director Tony Nargi. JLL Senior Director Robert Bratley represented the seller.

“We had very strong lender interest in Lyric No. 39 given the unique asset quality, incredible location and strong local sponsorship,” said Nargi. “Strat and Zeme both have extremely bright futures ahead of them, and it was a pleasure to work with them on this exceptional pre-stabilized transaction.”

Construction of Lyric No. 39 was substantially completed in Q4 2021. Residential and retail leasing efforts are underway with Christina Freyer Walker from Colorado & Company and Sam Zaitz and Jeff Feldman from JLL, respectively.

For more information, please visit lyric39.com.