Post Properties Signs $14 Million Pact for Low-Income Complex

Atlanta-based Post Properties Inc., a REIT specializing in developing and owning apartment complexes in urban infill areas, has signed a $14 million contract to buy the low-income East Village development in the Uptown neighborhood of Denver, just east of the Central Business District.

Post currently is building a $100 million, luxury apartment complex with about 900 units across the street from East Village, which houses some of the poorest people in Denver. Casden Properties Inc., a privately held firm based in Beverly Hills, CA., is the seller. Post has 60 days to complete due diligence before closing on East Village, at which time development plans will be decided, says C.L. Harmer, Post’s Denver spokeswoman. Post is facing more hurdles from neighborhood groups lobbying for fewer apartments in the immediate and citywide. Harmer says Post will initiate talks with East Village residents, city officials and other neighborhood groups.

The Denver Housing Authority, with the backing of Denver Mayor Wellington Webb, is in the process of condemning East Village in order to retain 199 subsidized units in the sprawling complex that covers 12.8 acres. A condemnation hearing is scheduled for Sept. 1. Based on its appraisal, the DHA is offering $6.07 million for the property, which houses 600 residents.

Earlier this year, Casden pulled out of a voucher program for subsidized housing. The dilapidated housing units, which now sit on valuable land, initially were built as housing for the 1976 Winter Olympics. The games never came about due to opposition from by then-CO. Gov. Richard Lamm.

Nationwide, Post Properties owns about 36,468 apartment units in 106 communities, including 5,382 units currently under development.