SteelWave Acquires Development Sites in Southern California and Colorado with Plans to Build More Than 500 Residences
FOSTER CITY, CA – April 27, 2016 – SteelWave, a full-service commercial, residential and mixed-use real estate management, operating company and investment management firm, announced it has acquired two multi-family development sites in Aurora, CO and Westchester, CA.
“This is a new chapter for our firm. We’re not abandoning what we’ve done so well in the commercial arena for the past 40+ years, but rather we’re adding to it by broadening our scope,” said Barry DiRaimondo, Steelwave’s CEO. “In today’s world there is a confluence of ‘live, work, play,’ and the idea of mixing residential alongside commercial in a single project is compelling. It’s creating value by adding multi-use capabilities to projects that used to stand alone.”
SteelWave, formerly Legacy Partners Commercial, was for years traditionally focused in the commercial realm. However, since last year when they separated from Legacy Partners to launch SteelWave, the firm has moved full steam ahead in to the residential-multi-family arena.
Future deals will be location driven, with the firm targeting its existing markets: Seattle, Portland, the San Francisco Bay Area, Los Angeles, Orange County, San Diego, Denver and Austin.
SteelWave’s first residential development acquisition includes 1.2 acres in Westchester, CA, located at La Tijera and 74th Street, just west of Interstate 405 near the Los Angeles International Airport.
SteelWave expects to break ground in May with completion anticipated in the first quarter of 2018. The project will include 140 one- and two-bedroom units, a pool, a club/sports bar and a state-of-the art gym. It will also include 13 below market units to help support the broader LA Basin’s need for affordable housing.
In addition to the site in Westchester, SteelWave acquired 15 acres in Aurora, Colorado for the development of 424 market rate apartments. Development costs will be approximately $100M. The company’s equity partner is Junius Real Estate Partners (a JPMorgan subsidiary).
“Aurora, Colorado needs more housing and our transit oriented project will bring a best in class apartment community to serve the area’s expanding workforce,” said DiRaimondo.
The development will target individuals and families employed by nearby companies: Fitzsimons Medical Center (45,000 employees), Denver Tech Center (75,000 employees) and Buckley Airforce base (17,000 employees). The site is also located directly adjacent to the newly constructed Iliff Station train station that will provide quick access to all parts of the Denver Metro area. Construction is slated to begin in June.
SteelWave has formed a strategic alliance with the Cavallari Group out of Los Angeles to execute the entitlement and development of these two projects. More projects will likely follow as part of this alliance.
SteelWave is a full-service commercial, residential and mixed-use real estate management, operating company and investment management firm. SteelWave and its predecessor companies, Legacy Partners Commercial and Lincoln Property West, have been active in commercial real estate for 44 years. As a vertically integrated leader in the industry, we source, entitle, design, finance, develop, renovate, lease, manage and sell real estate investments on behalf of many well-known institutional clients. Since its inception, SteelWave has acquired, developed or managed over 125 million square feet of commercial property in the western United States. For more information, please visit http://www.steelwavellc.com.
About The Cavallari Group
The Cavallari Group, headed by President & CEO Dennis Cavallari, develops and procures entitlement approvals for residential land and multifamily properties in the western US. Previously, Mr. Cavallari was the lead development partner in Southern California for SteelWave’s former sister company, Legacy Partners Residential. During his time with Legacy, Mr. Cavallari was responsible for developing some of the most noteworthy luxury apartment communities in all of Southern California. Prior to his tenure at Legacy, Mr. Cavallari was based in Denver, Colorado as a partner in charge of development for JPI, a national apartment community developer. Preceding JPI, Mr. Cavallari was a partner on the east coast running the northeast office of the former national apartment development group, Property Company of America. To date, Mr. Cavallari has overseen the development of 6,000 units in the western United States at a cost of $1.5 billion.