Following its value-add strategy in the Denver market, Oak Coast Properties has secured another property in Colorado. The company acquired ArtWalk Apartments at City Center, a 438-unit community in Englewood, Colo., for $123.5 million. JLL’s Jordan Robbins and Pamela Koster represented the undisclosed seller while Charles Halladay, Brock Yaffe, Rick Salinas and Matt Cimino arranged an $87 million Freddie Mac Optigo loan for Oak Coast’s acquisition. The new owner also tapped the Colorado-based Echelon Property Group to manage the community.
The suburban community’s units are split between one-, two- and three-bedroom floorplans that average 919 square feet. The ground floor of the mixed-use property has 15,329 square feet of retail space and amenities. ArtWalk Apartments’ amenities also include a business center, conference room, cyber cafe, clubhouse, courtyard with patio, fitness center, art studio and a pool and spa. The community is currently 95 percent occupied, according to Oak Coast.
Phil Nahas, managing partner at Oak Coast, said in prepared remarks that ArtWalk Apartments offers a more affordable alternative to living in central Denver where prices are much higher. Nahas added in his prepared statement that community was an attractive acquisition due to its quality and location within a supply-constrained market.
Located at 801 Englewood Parkway, ArtWalk Apartments is adjacent to the RTD Light Rail Englewood Station. The station provides residents with access to downtown Denver and nearby employment hubs through the C and D lines. Residents are also a short commute from local area’s major employers like the Swedish Medical Center, Craig Hospital, Porter Adventist Hospital and the University of Denver.
Roy Kim, a principal at Oak Coast, told Multi-Housing News that the previous owner completed renovations on a portion of the units and that Oak Coast will finish the enhancements to the remaining units, which include new countertops, flooring, carpets, appliances, light fixtures, cabinets, sinks and faucets, and painting. Alongside the unit enhancements, Oak Coast will be adding a dog park pet washing station, package lockers and adjustments to existing amenities in its $4.4 million renovation plan.
BULLISH ON DENVER’S MARKETS
The purchase of ArtWalk Apartments brings Oak Coast’s portfolio of mostly Class B and C multifamily assets to more than 4,608 units that total more than $1 billion in valuation. According to Oak Coast, the company is still bullish on rental housing in Colorado’s major metro markets due to the demand outpacing the supply.
Kim told MHN that Oak Coast will continue to be aggressive in pursuing acquisitions in Denver but will also be looking for opportunities in other submarkets. Kim also told MHN that the company is expecting to close on another Denver acquisition in mid-November.
Earlier this year, Oak Coast acquired a 200-unit community in August in Colorado Springs, Colo., for $37.3 million with the help of a $28.5 million Freddie Mac loan. And in September, the company also recently sold a 959-unit community in Denver for $163 million, which it first acquired in November 2016 for $129 million.