134 acres not developed by DIA sell for $18 million at bankruptcy auction
A large undeveloped site near Denver International Airport has been sold into bankruptcy.
SAV Land Holdings West LLC purchased about 134 acres on the southeast corner of East 64th Avenue and Piccadilly Road in Aurora in late December for $18.1 million, according to public records.
The entire site is zoned for industrial and residential use and is in a federally designated Opportunity Zone, according to documents filed in the associated bankruptcy filing.
The purchasing entity lists an address that matches Minneapolis-based Sherman Associates, which did not respond to requests for comment on Friday.
Sherman Associates has developed numerous apartment complexes and some hotels and other commercial projects, according to its website. She has completed at least two local projects: the 50-unit “Phoenix on the Fax” apartment building at 7171 E. Colfax Ave. in Denver and the 255 Ascent apartments in Westminster.
The property near the airport was sold by Hilltop to DIA LLC, an affiliate of Sebastian Partners, a Denver-based real estate company led by Michael Graham.
Hilltop paid DIA $2.1 million in February 2018 for the site, also known as 22050 E. 64th Ave., records show. The Sebastian Partners website said the company planned to purchase an additional 150 acres to the south in 2019.
In the summer of 2019, Graham told the Denver Business Journal that he planned to build a planned community called Avelon on the site, with more than 1,000 lots for single-family homes and additional land reserved for apartments, hotels and spaces. commercial. It would all be anchored in an 8,000-seat amphitheater, Graham said at the time.
The purchase of the adjacent 150 acres, however, did not materialize. The land was instead snapped up in June 2020 by Glendale-based Westside Investment Partners for $3 million, records show.
And in June 2021, DIA’s Hilltop filed for Chapter 11 bankruptcy protection, declaring both assets and liabilities between $10 million and $50 million. Law firm Perkins Coie was the largest creditor, listed as owing $972,000 in attorney fees.
Reached by phone briefly on Friday, Graham said he had no time to speak.
Hilco Real Estate, which marketed the property during the bankruptcy process, said in a statement that the starting bid for the November virtual auction was $16.1 million. Seven bids were made during the auction, according to the company.
The sale to Sherman Associates closed 37 days after the auction ended. If the deal with Sherman were to fall through, the âbackup bidderâ chosen was PCCP Acquisition Holdings LLC, according to court records.