GM Development Sells Historic Denver Building for $6.25M

For the first time, a building in Denver leased to hospitality startup Sonder has sold.

JDSM 630 16th LLC purchased the 20-unit property at 630 E. 16th Ave., which Sonder operates as a hotel dubbed The Essex, for $6.25 million, according to public records.

The purchasing entity was formed by Denver attorney Don Conty, who said he was part of an ownership group that includes locals who already own apartment buildings in the area.

FirstBank provided financing for the deal. Nik MacCarter and Brandon Kaufman of Nexus represented both the buyer and seller.

The property was sold by Denver-based GM Development, which purchased it in December 2017 for $2.1 million. Prior to GM, the building was used as a hostel, which the city closed for fire code violations in 2016.

“We completely renovated the entire building up to the historical standards,” said GM principal Ben Gearhart, who added the firm is interested in similar opportunities.

In 2018, GM successfully applied to make the building — which records show dates to 1907 — a city landmark, which brought state and federal incentives.

Gearhart said he purchased the building with the idea to convert it into a mix of both traditional market-rate apartments and units rented on a short-term basis. But in late 2018, he said, he started talking with Sonder, which leased the building. Read more…

From BusinessDen.com: “Uptown building leased to hotel operator Sonder sells for $6.3M” by Thomas Gounley. Photo by Thomas Gounley.