Value Added by Paradigm
Uptown – Land Assemblage – Joint Venture Development
Paradigm was engaged to analyze and complete the acquisition, syndication, and assemblage of property located at the intersection of Park and 17th Avenue in Uptown Denver.
The Challenge: Assemble and entitle three land parcels into a site large enough to attract an institutional development partner. Secure and negotiate a JV partnership with a national apartment developer to build a signature project that maximizes the site’s potential. Complete the development of a large institutional mixed-use project.
The Solution: The acquisition of initial 31,000 square foot lot and the non-contiguous parking lot lacked the site area needed to yield enough apartment units and attract an institutional apartment developer. Paradigm organized the acquisition of the adjacent 12,000 sf land parcel, and tackled the City of Denver requirements to abandon the connecting alley. These victories allowed for the successful assemblage, entitlement, and site plan approval of a single, contiguous parcel of approximately an acre. Paradigm also leveraged its existing network to locate and form a JV partnership with a national developer and provided development management services for the construction of the retail portion of the building.
The final mixed-use development has 190 single-family units varying from 535 sf studios to 1,527 sf 3-bedroom apartments, as well as 12,000 sf of retail space and 253 parking spaces. Paradigm now provides asset management services and has an ownership interest in the retail space.
Hance Ranch – Land and Vertical Development
Paradigm partnered to entitle and develop 7.18 acres of agricultural land at the last commuter rail station on the G-Line in Wheat Ridge.
The Challenge: Create a land plan that was profitable given the City’s constraints for development of the property. Negotiate these entitlement before the land owner required the property to be sold. Hedge the typical long-hold times associated with land transactions by locating an end-user.
The Solution: Before closing on the purchase of Hance Ranch, Paradigm secured all necessary entitlements to re-zone the property to higher density uses, re-platted the land into two separate parcels, and negotiated an agreement with a local homebuilder to purchase the north section of Hance Ranch for 157% of the total acquisition cost.
The final development plan included 63 townhomes on the north parcel, and 200 apartments on the south parcel. Paradigm played the primary role in handling pre-construction on the apartment parcel, including negotiating funding participation from the City of Wheat Ridge.
Co-Working Portfolio
Paradigm was engaged to provide development and portfolio management services for four properties: an existing co-working operation in the Country Club neighborhood, manage the adaptive re-use development of a 22,000 square-foot industrial building in the Golden Triangle neighborhood in Denver, evaluate the feasibility of a 40,000 square foot historic high school/convent in the Capitol Hill neighborhood, negotiate a lease to create a co-working space in most of a new office building in downtown Littleton . All of these building were intended to provide share workspace environments to office and small industrial users.
The Challenge: Balance the resources available to develop and successfully operate the portfolio. Manage the complexities and potential cost overruns associated with adaptive reuse development, analyze the benefits of Historic Tax Credit financing, and create a financial solution for all the co-working endeavors.
The Solution: Paradigm used its development systems to reign in cost creep related to the Golden Triangle project, while still preserving the project’s original vision. Paradigm procured the first ever Historic Tax Credits from the State of Colorado for redevelopment of an historic catholic convent; however, after complex sensitivity analysis, concluded that the historic property should be sold. Proceeds from the sale of the convent were available restructure the other equity investments and ensure a successful and profitable operations. Some of the proceeds were used to create co-working space in downtown Littleton. Completing this lease transaction was not possible without Paradigm’s analysis and strategic negotiations with landlord.