CCN land sale sets record

CCN, Cherry Creek North, land sets record.

SouthRock Partners pays $7.6 million for land in CCN, records show.

Price per square foot most ever paid for residential land in Denver.

CCN

Shown is the land in CCN that sold at a record price on a per square foot basis.

A Denver company has paid $7.6 million for a prime piece of real estate in Cherry Creek North.

SourceRock Partners LLP bought the 31,250-square-foot vacant land along Milwaukee Street between East Third and Fourth Avenues, according to public records.

The sale price equates to $243.20 per square foot, believed to be a record price for residential land sold in Denver.

Rollie Jordan, a broker with Kentwood Real Estate in Cherry Creek, sold the property, but declined to reveal either the sales price or the names of the buyers of the buyers or the sellers.

Denver Real Estate Watch found information about the transaction in public records. The deal closed on Aug. 8, but was not released until Thursday.

“This is the last big, parcel left in Cherry Creek North,” Jordan said.

“We call it beachfront property. It is near everything.”

Commercial land has sold for more per square foot than this property, she noted, but this appears to be the new high water mark for residential land.

She said the new owner has hired Haley Custom Homes to be the builder.

Jordan said it hasn’t yet been determined the type of units, size and price of the units.

The property is zoned G-RH-3, or General Urban, Row House, which allows 3-story buildings that would include townhomes, condominiums and flats.

“Haley Custom Homes, headed by Dan Fuller, is a great custom home builder,” Jordan said.

CCN

Rollie Jordan listed and sold the record-setting property in Cherry Creek North.

About a decade ago, another developer, Kobey Development Inc., which had purchased the land for $5.3 million, had planned 10 homes on the property, that were priced from $3.5 million to $6 million.

The units in what was called Residences at One Cherry Creek were to range in size from 3,500 square feet to 6,000 square feet, which equates to a sales price of $1,000 per square foot for the completed homes.

However, stalled during the Great Recession and never got off the ground.

In 2014, Kobey sold the property to Cherry Creek Investment for $5.795 million, according to public records. Cherry Creek Investment, in turn, sold it to SourceRock. SourcerRock’s principals also are executives with Marmik Oil, which moved its headquarters to Denver in 2013.

Marmik Oil, which has working interests or royalty interests in more than 500 oil wells, was founded by the late Charles H. Murphy Jr. in El Dorado, Arkansas, in 1952.

Murphy, who died in 2002 at the age of 82, also founded Murphy Oil, which today is a publicly traded company with a market cap of more than $4.5 billion.

The land sale is one for the record books, as far as residential property, according to John Winslow.

“That has got to be a record for residential land,” said Winslow, who was not involved in the deal, but has been closely tracking real estate in the Denver area for more than four decades.

CCN is the only submarket in Denver where that kind of sales price makes sense, he said.

“A developer can’t pay $250 per square foot anywhere else, not even in LoDo, the Golden Triangle or Highland, because Cherry Creek North is the only place where you can get the sale prices to justify spending that kind of money,” Winslow said.

“Cherry Creek North land is so valuable that is like a gold mine has been discovered there,” Winslow said.

Wade Murphy, a principal of SourceRock, said one of his partners, John Eddy, was the point man on the purchase, but Eddy was not immediately available to comment.

Eddy is on the board of Marmik and is responsible for strategic development of future exploration and infrastructure development.

Prior to joining SourceRock, Eddy was a partner with Meridian, a national public relations and consulting firm.

At Meridian, his clients included the Ford Motor Co., Wal-Mart, Exxon and the American Petroleum Institute.

Eddy also has served as a deputy White House liaison for the U.S. Department of Justice under President George W. Bush.

Have a story idea or real estate tip? Contact John Rebchook at JRCHOOK@gmail.com. DenverRealEstateWatch.com is sponsored by 8z Real Estate. To read more articles by John Rebchook, subscribe to the Colorado Real Estate Journal.

 

 

 

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John Rebchook

John Rebchook has more than 30 years of experience in writing and communications. As the Real Estate Editor for the Rocky Mountain News, he wrote about residential and commercial real estate for 26 years. He has won numerous awards for business stories and columns that he wrote, both as an individual and part of teams. In addition to real estate, he also covered economic development, banking and financing, the airlines, and cable TV for the Rocky. In addition, he was one of the original freelance writers for GlobeSt.com, covering commercial real estate for the Internet publication.

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