By Dees Stribling, Contributing Editor
Littleton, Colo.—Holland Partner Group has secured $38 million in acquisition financing to buy a multifamily property in Littleton, Colo., a suburb of Denver. The asset is Monterey Heights, a 332-unit apartment complex.
Dating from the early 2000s, the property includes one-, two- and three-bedroom units, with an average size of 937 square feet, and rents starting at $770 a month. Monterey Heights also features a clubhouse, fitness center, business center, pool and spa. Occupancy is 93 percent.
Holland Partners, based in Washington state, owns and manages more than 21,000 multifamily units in Washington state, Oregon, California, Colorado and Arizona. CBRE’s executive vice president Jim Rice and vice president Nick Santangelo arranged the financing, with was through Freddie Mac. The borrower used a 10-year, 3.69 percent fixed rate term with three years of interest-only and then 30-year amortization to finance the acquisition.
Metro Denver’s apartment market is quite tight, and expected to get tighter. Investment specialist Marcus & Millichap puts the 4Q12 vacancy rate in the market at 4 percent, compared with 5.4 percent at the end of 2011. At the end of 2012, asking rents were $932 per month, a 3.8 percent annual climb from 2011, and effective rents were $845 per month, a 4.4 percent increase compared with a year ago.
In 2012, a net of about 34,000 new jobs were created in metro Denver, compared with about 15,900 in 2011. Barring a major disruption in the national economy, job growth in the metro area is expected to continue, especially in some high-end industries such as aerospace, thus adding to demand for apartment properties, according to Marcus & Millichap.