Two Nine North apartments in Boulder sell for $93.5M

BOULDER – Local developers have sold the Two Nine North apartments for $93.5 million to Two Nine North Inc., an entity representing the state of Florida’s Retirement System Trust Fund.

The deal closed Wednesday, according to Boulder developer Lou DellaCava. The seller was 2nd Level Investors LLC, a group led by DellaCava and Denver developer Darren Fisk that also included several other investors.

2nd Level developed the four-story, 238-unit complex, which opened in 2011. When ground broke in 2010, Two Nine North was projected to cost $60 million to build.

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Two Nine North, at 1955 30th St., sits just south of a group of properties that Fisk’s Forum Real Estate Group is partnering with another Denver firm on redeveloping into a large mixed-use project called Pearl Place at the southwest corner of 30th and Pearl streets.

DellaCava said the dynamics of the commercial real estate marketplace have been “frothy” the last couple of years as institutional investors have been aggressive in snatching up property.

He said Two Nine North’s former ownership group had 115 inquiries about the apartments when they went on the market. That included nine cash offers from large institutional investors.

“It’s obviously a very strong market,” said DellaCava, who is also a partner in the current redevelopment of the former Golden Buff Lodge hotel and Eads News and Smoke Shop site.

Two Nine North, when it was developed, was geared toward providing market-rate workforce, student and senior housing. DellaCava said the complex is 92.4-percent occupied, with about 62 percent of renters being members of the work force, 23.5 percent students and 6 percent retirees in addition to a few units reserved for employees and a couple leased as guest suites.

According to the Two Nine North website, rents there range from $1,743 per month for a one-bed, one-bath, 792-square-foot unit to $2,245 for a two-bed, two-bath, 1,179-square-foot unit.