Shortly after selling a four-property portfolio of 690 apartments in Grand Forks, N.D., for $42.5 million, IRET has redeployed the proceeds into the purchase of a 465-unit, Class A luxury community in a Denver submarket for $144.8 million.
IRET acquired Parkhouse Apartment Homes in Thornton, Colo., from Starlight Investments. Starlight had purchased the north Denver apartment community from Lennar Multifamily Communities in October 2017 for $121.6 million, according to Yardi Matrix. Located at 14310 Grant St., the 24.2-acre property was completed in 2016 and is near north Denver’s retail and employment corridors and east of Interstate 25.
The garden-style complex has 20 buildings with one-, two- and three-bedroom floorplans. Rents range from $1,336 to $2,222 with an average of $1,627, according to Yardi Matrix data. The apartments feature designer kitchens with islands, granite countertops, stainless steel appliances, nine- to 15-foot ceilings, hardwood-style flooring, full-size washers and dryers, and private patios or balconies.
Community amenities include two swimming pools and spas, outdoor kitchen with grills, community garden, playground, clubhouse, fitness center with cardio and yoga rooms, game room and resident lounges, business center. There are more than 900 parking spaces with direct access garages available in select three-bedroom units. The property has electric vehicle charging stations.
Mark Decker Jr., IRET’s CEO, said in prepared remarks the sale of the North Dakota portfolio enabled the firm to take advantage of the strong demand for multifamily product in secondary markets and use the proceeds to purchase a best-in-class community that will result in higher quality cash flow and better potential for growth. Decker noted the addition of Parkhouse Apartment Homes balances IRET’s existing Denver portfolio to 50/50 downtown and suburban and allows the firm to achieve critical mass in a key growth market.
In October, IRET acquired Lugano Cherry Creek, a 328-unit community in Denver, for $99.3 million, and FreightYard Townhomes & Flats, a 96-unit property in Minneapolis for $26 million. IRET had previously purchased Westend, a 390-unit upscale multifamily property near downtown Denver for $128.7 million.
More recently, in December IRET exited the Sioux Falls, S.D., and Sioux City, Iowa markets with the sale of 10 apartment communities consisting of 969 units for a total of $78 million.
Decker said IRET planned to be opportunistic with dispositions while expanding in its target markets of Minneapolis, Denver and Nashville, Tenn. Currently, IRET owns 67 apartment communities consisting of 11,910 apartment homes.