Allante Properties

Developer's Resume

Allante forms groups of like-minded investors

Allante Properties LLC, is a real estate investment company headquartered in Denver, Colorado that organizes groups of like-minded people to invest in income producing properties in the Denver area. This includes: New Development, Single Tenant Net Leases, Value Add opportunities and Short / Long Term Debt. We transact and manage various kinds of opportunities with different risk profiles in order to satisfy our investors' investment objectives. We build solid, long lasting relationships with our expanding group of investors through effective communication and transparent reporting. We strive to meet projected returns over the long term.

Allante believes in diversification and that each investor should include various real estate investments in its portfolio.

Allante recognizes that there are many diverse investments which are available for investors. Through diversification investors can achieve a risk-balanced portfolio which include various types of real estate and other investments.

Investing with Allante in Real Estate offers participation in cash flows and profit on resale on various projects, all with different risk profiles associated with the total projected return, depending on the specifics of each opportunity.

Currently, Allante is pursuing their strategy to design and build new urban apartments in walkable locations in Denver.  Allante’s design incorporates smaller units that rent for less and captures the demand of the Millennial renter who wants to live alone in the urban scene, convenient and walkable to restaurants, nightlife and shopping.

Allante incorporates other strategies to generate investor returns, including the acquisition of existing apartment and commercial properties, where Allante can use its management, construction, and finance experiences to optimize these opportunities.

The entrepreneurial spirit that defines Allante Properties remains evident in each property we acquire, develop and manage.  The Denver economy and its strong market fundamentals is a base upon which investors can build their portfolio of real estate investments.

  • Managing Partner Letter

    Founded in 2011, Allante Properties has become as a trusted sponsor upon whom smart, private investors can rely. Allante is now the champion of individual, private investors by opening up opportunities through group investing to acquire a portion of Allante's investments (with investment amounts from $100,000).

     

    Before "crowd funding" in real estate, it was clear to us that the market lacked opportunities for individual real estate investors. Historically, smaller, private investors participated in large “A”-rated real estate investments indirectly, through sponsors who accessed capital from large institutions. We recognized the need for smaller, private investors to gain access to quality developments and investment opportunities.  We are fulfilling the growing demand to meet this need in Denver, a top 10 city with strong economic fundamentals.

     

    Grounded firmly upon principles of honesty, integrity and transparency, we utilize the power of grouping individual investors to help them achieve their investment objectives of risk-adjusted returns through diversification. It is our mission to expand real estate investment options, so that our investors are better able to achieve diversification within our portfolio and achieve peace of mind.

     

    We are extremely thankful to our wonderful group of investors who propelled Allante Properties into a respected Denver real estate firm and enabled Allante Properties to quickly act upon exceptional opportunities.

     

    Allante Properties finds, creates and delivers investments with risk-adjusted returns for smaller, private investors. We invite prospective investors to consider Allante Properties as their “go-to” sponsor to help them achieve their real estate investment objectives. We look forward to working with you and for you!

     

     

    Darell SchmidtManager and PrincipalAllante Properties, LLCDaren SchmidtManager and PrincipalAllante Properties, LLC

    Click here for developer resumé.

  • Allante Team

    Darell Schmidt

    Manager

     

    Darell@AllanteProperties.com

    303-359-1210

    Daren Schmidt

    Manager

     

    Daren@AllanteProperties.com

    303-601-8149

    Matthew Gehrke, Esq.

    General Counsel

     

    mgehrke@gehrkelawfirm.com

    303-795-5500

    Fernanda Harmon

    Asset Manager

     

    Fernanda@AllanteProperties.com

    303-669-6371

    Linda Leiser

    Investor Relations

     

    Linda@AllanteProperties.com

    720-498-2039

    Jordan Meylan

    Director of Finance & Research

     

    Jordan@AllanteProperties.com

    719-322-5204

    Ryan Llewellyn

    Owner's Construction Rep

     

    Ryan@LCE-c.com

    720-998-2088

    Tyler Dulin

    Analyst & Project Coordinator

     

    Tyler@AllanteProperties.com

    970-343-0055

  • Completed Projects

    Fitzsimons Place

    Allante Properties purchased The Bahamas, in May of 2012. Comprised of 99 units, this acquisition presented a number of challenges including, 40% vacancy, 20 years of deferred maintenance, challenging tenant profile and below market rents. The prior owner had owned the property for 20-plus years and had not revisited it since the initial acquisition.

    Allante Properties saw these challenges as a tremendous opportunity. The area was seeing a renaissance with the multi-billion redevelopment of the former Fitzsimons Army Medical Center into a world-class medical campus, the largest of its kind in the country at the time. This massive redevelopment was beginning to spurn ancillary private redevelopment around the campus in the form or new apartments, retail, hotel, and office. At this time the entire Denver MSA was rebounding from the downturn, recovering lost jobs and boasting strong in-migration. These factors were putting upward pressure on rents and the business plan became clear.

    The property was purchased for $3,000,000 and re-branded to Fitzsimons Place. Starting the renovation in May of 2012 and finishing in May of 2014 the building was completed with $1,750,000 in capital invested in the units and the common areas. During this timeframe the property began to see drastic improvements in rental rates, NOI performance, and an improved tenant profile. Police interaction at the property decreased 90%. In June of 2014 the property stabilized at 97.9% occupancy and would not fall below 97% through the disposition of the property in February of 2015 at a sale price of $6,500,000.

    Annual Average Return for Investors on Fitzsimons Place 26.81%

     

    Highland Place

    Originally a run down 13,000 Sq. Ft. restaurant on approximately 40,000 Sq. Ft. of land, now developed Highland Place is a Mixed Use Apartment and Retail Development consisting of 68 Class A apartments and about 11,000 square feet of retail, located on the southeast corner of West 38th Avenue and Julian in one of Denver’s hottest neighborhoods, The Highlands.

    Highland Place has achieved great success in the market place. The asset rented quickly achieving rents above our pro forma and is maintaining occupancy above 95%. Our net operating income is generating a debt coverage ratio of 1.9 and continues to increase with rental increases. Our unit mix is diverse and includes micro units with 387 square feet, including a full kitchen and full size washer and dryers. They leased instantly along with a heavy mix of studio apartments that created a value proposition for the tenants. Complimented with one and two bedrooms, the entire lease-up period was achieved in 5 months after opening.

    The retail space, which has its own parking deck and 44 covered parking spaces, is fully leased with Bout Time Pub & Grub, Pacific Dental, H&R Block, Max Muscle and Fit 36. This location was considered pioneering just three years ago and is now main-stream with heavy development occurring up and down the West 38th Avenue corridor. With the property stabilized, Highland Place is expected to outperform Allante’s original projections.

    Highland Place was designed with top-notch interior finishes and an amenity package complete with a south-facing private courtyard (with a fire/water feature, intimate seating, landscaping and multiple barbeque grills – pictured at right)  and a Clubhouse. Highland Place has redefined mixed-use in this eclectic neighborhood and is expected to be in high-demand for the long term.

    According to a recent analysis, Highland Place ranked 6th in the United States for its online reputation assessment.  For more information about this ranking, and ORA™ Power Rankings, please visit https://www.jturnerresearch.com/about/what-is-ora-score.

     

  • Projects Under Construction

    Tennyson Place

    Tennyson Place is an 81 unit apartment development that is currently under construction at 39th and Tennyson in the Berkley neighborhood, one of Denver’s hottest and most walkable locations with many chef inspired local restaurateurs offering one of a kind drinks and creative dishes satisfying the most critical palate.    Finished  units will be available for occupancy in early summer 2017.

    The site was acquired in August of 2015 after completing an $8 Million equity raise from  private investors. In a five story building with two levels of underground parking, the design features an abundance of various sized studio apartments with a small number of one bedroom apartments.  This unit-mix correlates with tenant demand for more affordable priced units in a walkable urban location, as their size alone delivers affordability as much as 20% under the competition. Although these are smaller units than the typical units being built by competitive developers, Tennyson Place offers units a supreme location with rents below the competition.

    Daren Schmidt conducting Hard Hat Tour with Ron Tannery and Craig Blinkow

    Underground Parking Takes Shape in summer of 2016

    Eric Tuers and Shaun Cox of Community Banks of Colorado with Allante Team

    Emerson Place

    Emerson Place is an 85-unit apartment development that is currently under construction at 18th and Emerson in Denver’s Uptown neighborhood, one of Denver’s original neighborhoods with deep roots in the community. Today, the Uptown neighborhood is home to a power-packed variety of boutique shops, restaurants, designer fitness facilities, millennial startups, longstanding businesses and mature outdoor spaces.

    Emerson Place is expected to deliver finished units in June 2018. Its location, just east of downtown Denver, is also one block to the 17th Avenue Restaurant Row, with restaurants like Steuben’s, the Tavern, and Humbolt’s which is waiting to taste the palate of nearby residents.   And across Park Avenue is Saint Joseph Hospital, part of SCL Health, a no profit healthcare organization with a $2.3 billion health network.  The hospital just completed a $623 Million renovation in 2014, houses e65 private patient rooms in its 800,000 square foot facility with 2012 employees and 1413 medical staff.  And next door is Presbyterian St, Luke’s Medical Center, which has more than 1,000 specialists and primary care physicians housed in its 364,000 square feet.  It is flanked by Kaiser Permanente, which recently expanded their Uptown location.

     

  • FAQ

    I noticed that a Press Release was issued by the Colorado Division of Securities in September 2015 regarding a Cease and Desist Order for Tennyson Place, Allante, Darell and Daren Schmidt, and that The Denver Post and The Denver Business Journal had published stories.  Would you explain what this is all about?

    To start with, Allante was fully cooperative with the inquiry made by the Colorado Division of Securities and successfully resolved the matter in less than 60 days, prior to the issuance of the Press Release by the Colorado Division of Securities.  Unfortunately, Allante has received comments by investors that were confused by the Press Release.  This discussion is intended to state the facts more clearly for investors.

    Allante structures its development opportunities with special purpose entities which sell securities to raise capital for acquisition, planning, and construction.  Such securities are designed to qualify for exemption from registration under Regulation D of the SEC rules, which means that there are numerous laws which Allante must abide by, both at the state and federal levels.   The Colorado Division of Securities looked into and requested documents from three of our offerings and raised two issues that required our attention:

    1)  Allante, as manager of Tennyson Place, LLC, should have timely filed a Form D with the SEC (and transmitted a copy to the Colorado Division of Securities).

    2)  We initiated a note offering to investors with whom we had a pre-existing and substantial relationship, under the exemption of Rule 506(b). However, because there was ongoing advertising for a subsequent equity offering under Rule 506(c), we were advised that the two offerings would be deemed joined, which would disqualify our exemptions.

    Allante recognized these issues and with our desire to be compliant, took immediate action to resolve them.  The Form D was filed for Tennyson Place in September, 2015, and the investments made by the non-accredited investors in Tennyson Place in the Rule 506(b) offering were immediately returned to the investors, with interest, in August, 2015.  No investors were harmed.   Without admitting any wrongdoing, we volunteered to enter into a stipulated “cease and desist order” in which we agreed 1) not to offer or sell unregistered securities, 2) not to violate Colorado statues for securities that are being offered or sold, and 3) not to engage in any conduct in violation of the Colorado Securities Act (essentially the same rules which must be followed by all who sell securities).  We then proceeded with, and successfully closed, our $8 Million Tennyson Place Offering, with $14 Million of bank-loaned construction financing, and we timely broke ground in November, 2015.

    What is Allante Properties Goal?

    Allante’s Goal is to create above average cash flow and appreciation for our valued investors and Allante Properties with direct investments in Denver real estate, including the acquisition and construction of multifamily apartments, investment in existing and well located single and multi tenant retail properties.

     

    Why do you offer investment positions to private investors?

    We enjoy working with private investors and want to become their “Go To”  company for Denver real estate investments. We form groups of private investors, aggregating their capital, usually in increments of $100,000, to create massive purchasing power in our real estate investments.  Allante Properties shares the returns with these investors and often generates returns far greater than they could have achieved by investing their capital by themselves.  Allante manages the entire process without requiring any involvement from the investors.  No capital calls are required of investors.  They appreciate the opportunity, as most developers will not allow private investors into their deals. The returns we can generate for private investors is compelling and satisfying to them which creates a desire on their part to reinvest with Allante on future deals that Allante Properties brings to them.

     

    Why don’t you accept investment money from Wealthy Families or Institutions?

    The approval of the Jobs Act of 2012 now allows advertising and solicitation to locate investors for business opportunities.  This changed the playing field in September of 2013. The ability to advertise is allowing investors for the first time in 80 years to connect with sponsors and make direct investments, which provides the investors an opportunity to locate Allante Properties and Allante the ability to locate multiple investors.

    We see wealthy families and institutions as a hindrance to servicing the private individual investor.  They typically ignore this market segment of investors and are a middleman, taking large portions of profit and reducing returns to both the investors and Allante Properties.

     

    How, why and when did you start Allante Properties?

    The Schmidt’s founded Allante Properties in 2011.  After realizing that the Great Recession set in motion rising demand for apartments and limited supply.   These fundamentals generated enormous opportunities to invest in apartments. In 2009, Darell and Daren attended a gathering of apartment industry experts in Orlando, Florida. It was clear to industry stalwarts and us that apartments would quickly become the darling of the industry and that the forces creating excellent investment opportunities were in place.  And after reading Emerging Trends 2009, a publication from Urban Land Institute / Price Waterhouse Cooper that detailed the future opportunities for apartment investment, we decided to start investing in apartments.  We correlated the fundamental demand that was developing in Denver and immediately set in motion a plan to invest in apartments in Denver, both acquisitions of existing buildings and ground up new construction.

    Darell and Daren, you both are passionate about real estate and Darell, you have been in real estate development and investment since 1982 in Denver.  How does your passion and prior experience in real estate sales and development qualify you to guide investors into real estate investments today?

    Our experience is varied across the entire real estate spectrum, including brokerage where Darell obtained his status as a Certified Commercial Investment Member and counseled multiple parties on investing in income producing real estate, including apartments. Then Darell developed numerous income producing properties including shopping centers and office buildings where he earned a solid reputation at a young age.  Darell formed Falcon Homes in 1986 and built over 2700 homes in Denver.  Daren helped is father at Falcon, desiring himself to enter the real estate business.  Collectively, Darell and Daren have now developed over $881 Million in Denver real estate.  Our skills and contacts have developed over time and have demonstrated our capacity to bring all facets together to generate great returns in real estate investments.  These facts, coupled with our investors desire for risk-adjusted returns, have catapulted Allante Properties as the champion for the private investor.  Forming groups of like-minded investors has created enormous purchasing power that has served Allante and its private investors very well.

     

    Why Denver, Why Now?

    Simply stated, Denver has been discovered!  Its central geographic location is playing a huge role in its success.  Its extensive transportation infrastructure with Denver International Airport and its massive Light Rail lines has brought Denver into the 21st Century as the envy of all other cities.  Its climate and recreational opportunities in the mountain communities created an overwhelming demand for its one of a kind lifestyle.  Our professional sports teams including the Colorado Avalanche, Colorado Rockies, Denver Nuggets and the Denver Broncos who won Super Bowl 50, has attracted attention to Denver not only from around the United States but from around the world.  Denver is now considered an 18-hour city that is attracting employers that generate job opportunities for our highly educated work force.  Employment growth has been spectacular and its growing population base, led by the Millennial generation, has created unmet demand for housing of all types including rental apartments and for sale condos, town homes and single family.

     

    You both seem to be very entrepreneurial.  So, what is on the horizon for Allante Properties?

    We of course will continue to pursue acquisitions and new development for rental housing, which will include apartments and potentially townhome rentals to meet the rising demand for those who either don’t want to or can’t purchase a home.  We will also pursue the acquisition of single tenant retail and other commercial properties that show promising returns for Allante and its investors.

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Allante forms groups of like-minded investors

Allante Properties LLC, is a real estate investment company headquartered in Denver, Colorado that organizes groups of like-minded people to invest in income producing properties in the Denver area. This includes: New Development, Single Tenant Net Leases, Value Add opportunities and Short / Long Term Debt. We transact and manage various kinds of opportunities with different risk profiles in order to satisfy our investors' investment objectives. We build solid, long lasting relationships with our expanding group of investors through effective communication and transparent reporting. We strive to meet projected returns over the long term.

Allante believes in diversification and that each investor should include various real estate investments in its portfolio.

Allante recognizes that there are many diverse investments which are available for investors. Through diversification investors can achieve a risk-balanced portfolio which include various types of real estate and other investments.

Investing with Allante in Real Estate offers participation in cash flows and profit on resale on various projects, all with different risk profiles associated with the total projected return, depending on the specifics of each opportunity.

Currently, Allante is pursuing their strategy to design and build new urban apartments in walkable locations in Denver.  Allante’s design incorporates smaller units that rent for less and captures the demand of the Millennial renter who wants to live alone in the urban scene, convenient and walkable to restaurants, nightlife and shopping.

Allante incorporates other strategies to generate investor returns, including the acquisition of existing apartment and commercial properties, where Allante can use its management, construction, and finance experiences to optimize these opportunities.

The entrepreneurial spirit that defines Allante Properties remains evident in each property we acquire, develop and manage.  The Denver economy and its strong market fundamentals is a base upon which investors can build their portfolio of real estate investments.