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.