Allied Realty Services Inc., which also has a Denver regionaloffice, is constructing the 372-unit, 370,000-sf Retreat atWestcliff near US 36 at Church Ranch Road. "There's a real lack ofavailable sites along that corridor, so anytime a developer has asite to build on, it's a big deal," says Jeff Hawks, an apartmentbroker with Grubb & Ellis.

Dan Lipnick, managing director of Houston-based TransworldProperties Inc., which is providing $7.2 million in equity for theproject, agrees. "The Denver market has significant barriers toentry which, when combined with strong job growth and housingdemand, have made this a challenging but attractive deal," saysLipnick. About five years ago, Transworld teamed with Allied aboutto develop the Lodge at Willow Creek multifamily complex near thePark Meadows mall.

Jarett Minton, vice president of Transworld, says the complex'slocation--midway between downtown Denver and the InterlockenBusiness Center--"was a major factor in our investment decision"because it provides ready access to employment centers andrecreational offerings. Chase Bank is providing the constructionfinancing for the project, which will be comprised of apartmentswith an average 1,241 sf and a rental range of $830 to $1,950 permonth.