Bascom, Oberndorf Pay $74M for Denver-Area Property

This asset previously traded in 2015 for $53.4 million.

Oberndorf Real Estate Management, formerly known as The Axton Group, and The Bascom Group have acquired Hearthstone at City Center, a 360-unit multifamily community in Aurora, Colo., for $74 million. The previous owner was Independence Realty Trust, according to Yardi Matrix data.

The asset previously traded in 2015 for $53.4 million, the same data source shows. In 2020, Independence Realty Trust financed the property with an undisclosed amount drawn from a $592.1 million line of credit held by Fannie Mae, due to mature in 2030.

Completed in 1982, the garden-style community comprises one-, two- and three-bedroom floorplans ranging from 720 to 1,500 square feet across 41 buildings. Apartments feature walk-in closets and private balconies or patios, along with washers and dryers and fireplaces for select layouts. Common-area amenities include a swimming pool, 10 laundry facilities, a basketball court, a fitness center, a sauna and a pet park, as well as outdoor grilling and picnic areas.

The buyers plan to implement an extensive value-add program. The renovations will include unit interior upgrades, along with improvements to amenity spaces such as the fitness center, leasing center and pool.

Located at 932 S. Helena Way, the 18.3-acre Hearthstone at City Center is roughly 12 miles west of downtown Denver and some 3 miles from the city center. The property is also 13 miles from Denver International Airport and less than 2 miles from the Town Center at Aurora shopping mall.

Denver multifamily investment still strong

The acquisition of Hearthstone at City Center was Bascom’s 37th in the state of Colorado and the 10th in Aurora. The deal also marks the company’s fourth addition to its portfolio this year, following the purchase of a 96-unit community in Santa Fe, N.M.

Throughout all of last year, 7,266 units changed hands in the Denver area for a total investment volume of $2.5 billion, Yardi Matrix information shows. The average price per unit clocked in at $320,997 at the end of 2023, down from the previous year’s $330,282 average.

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