Nuveen Real Estate has sold its Palomino Park Resort community in the largest single-asset apartment trade in Colorado’s history, for $435 million.
JLL arranged the sale of the community in Highlands Ranch, Colo., to an undisclosed buyer. The firm’s Matthew Lawton, Jordan Robbins and Pamela Koster represented Nuveen, while Andy Scott, Whitaker Johnson and Robert Bova secured nearly $282.8 million in financing for the buyer.
Palomino Park Resort was built in phases between 1996 and 2001 and was previously separated into three communities, according to Yardi Matrix data. Nuveen purchased the communities in December 2005 for $176 million from Koelbel & Co. and combined the three properties and rebranded them to Palomino Park Resort, according to Yardi Matrix data. During Nuveen’s ownership, Pinnacle was tapped in March 2018 to manage the community.
Located at 6700 Palomino Parkway, the 1,184-unit community offers one-, two- and three-bedroom floorplans that range in size from 727 to 1,485 square feet. The three communities have access to their own 4,000-square-foot clubhouses as well as The Colorado Club, a communal 26,000-square-foot recreation center that sits on a 30-acre park. The communities’ amenities include a jogging path, putting green, pool, lounge, fitness center, tennis courts and barbecue grills.
According to JLL, the new owner can still generate more value with the community as approximately 50 percent of the units have undergone varying levels of interior upgrades. The community also presents an opportunity to renovate the Colorado Club.
Palomino Park Resort is also located in a submarket with strong demographics and a large demand for high-quality rental housing, according to JLL. The community is located near a major Colorado employment node, the Southeast Business Corridor, that contains more than 33 million square feet of office space and has more than 240,000 employees.