The Lydian Sells For $54M To Minnesota Apartment Operator
The Lydian apartment complex at 2590 Welton St. in Denver’s Five Points neighborhood has sold for the second time in less than three years. Minneapolis-based multifamily investor Centerspace bought the 129-unit property for $54M in a deal that closed Oct. 1.
The purchase included the assumption of a $35M mortgage, according to a release from Centerspace. The assumed debt carries a 3.72% interest rate and matures in February 2027 but is interest-only until January 2032.
The Lydian last sold in early 2022 for $66M to Cohen Rojas Capital Partners.
In addition to the apartments, The Lydian includes 8K SF of ground-floor retail space and over 14K SF of coworking space. The project was completed by Denver-based Confluence Cos. in 2018 and is close to the 25th and Welton light rail stop. Twenty-two of the apartments are designated as income-restricted for people making 80% or less of the area median income.
The property sold for about $418K per unit, down from $551K per unit the last time it traded.
Denver’s multifamily market has experienced slowing and some flattening in rental rate growth over the last year, but it is still performing better than many of its peer cities.
However, Denver is dealing with its own version of the nationwide wave of deliveries in the last several months. A record 7,399 new units were delivered in the second quarter of 2024, according to the Apartment Association of Metro Denver.
