HGI Pays $133M for Denver Portfolio
CBRE brokered the sale and structured the acquisition financing.
Harbor Group International has acquired two recently completed communities in metro Denver for $132.5 million. Developer The Garret Cos. sold the 434-unit portfolio. CBRE represented the seller in the transaction and arranged the acquisition financing. This deal brings HGI’s Denver footprint to 10 properties.
One of the assets in the portfolio is The Prospector Modern, a 238-unit community in Castle Rock, Colo. Completed last year, the garden-style property comprises 17 two- and three-story buildings across a 27.5-acre site. It encompasses one- to three-bedroom floorplans ranging from 760 to 1,381 square feet, according to Yardi Matrix data. It was 86.1 percent occupied as of December.
Common-area amenities include a swimming pool, lounge with billiards and arcade games, fitness center, dog park and indoor dog spa. Located at 3360 Esker Circle, the property is less than 3 miles from central Castle Rock and roughly 30 miles south of Denver via Interstate 25.
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Ladora Modern Apartments, the other property, also came online in 2023 on a 5.7-acre site. Its 14 residential buildings comprise one- to three-bedroom apartments averaging 1,024 square feet. Its common areas feature a swimming pool, spa, entertainment room, gas grills and dog park.
Located in Denver proper, at 18590 E. 61st Ave., Ladora Modern is some 17 miles from the city’s downtown. The community is also less than 8 miles from Denver International Airport, close to the Rocky Mountain Arsenal National Wildlife Refuge. It had an 84.7 percent occupancy rate as of December.
CBRE Vice Chairmen Terrance Hunt and Shane Ozment, along with Senior Vice Presidents Andy Hellman and Justin Hunt, represented The Garret Cos. in the sale. Additionally, the company’s Vice Chairmen Shawn Rosenthal and Brady O’Donnell, together with Executive Vice President Jason Gaccione, Associate Vice President Jake Salkovitz and Director Jill Haug, led the team that arranged the acquisition financing.
Denver multifamily investments drop
Throughout 2023, 45 properties totaling more than 7,500 units traded in Denver for a combined $2.65 billion, marking an average $325,893 per unit, according to Yardi Matrix information. Investments in the metro registered a significant drop compared to the previous year’s figures in which 18,830 units changed hands for $4.9 billion, at the higher price per unit of $330,282.
The largest transaction of last year in Denver closed in late December, when Griffis Residential acquired Platform Union Station for $125.5 million. The 287-unit luxury asset, located in the city’s downtown, was sold by Holland Partner Group.