With interest in the greater Denver area from the coastal cities growing, Oakmont Properties has continued the trend with the purchase of a Colorado community from AG Spanos for $90 million.
The 286-unit Fusion 355 was built in 2019 at 355 Eldorado Blvd. in Broomfield, Colo. The community is split into studios, one-, two- and three-bedroom units that are equipped with washer and dryer, ceiling fans and arched ceilings. Fusion 355’s amenities include a fitness center, a yoga studio, a dog park, media and game rooms, bike storage, a heated pool with spa and deck, a community garden, private garages and 400 parking spaces. According to CBRE, Fusion totals 256,376 square feet of rentable space and was 85 percent leased at the time of the sale.
CBRE’s Dan Woodward, David Potarf and Matt Barnett from the Capital Markets team in Denver represented the seller and Marc Ross from CBRE’s Sacramento office represented Oakmont.
Ross said in prepared remarks that Oakmont saw Fusion 355 as an opportunity to expand its Denver footprint with a well-located community. The community is in Broomfield’s Interlocken neighborhood that is home to many technology, manufacturing and ski resort companies while also being less than 20 miles away from downtown Denver. Oakmont also purchased a recently completed 453-unit luxury community in Salt Lake City.
Dan Woodward, executive vice president at CBRE, said in prepared remarks that Fusion 355’s sale was another case of investment capital migration to Denver from the coastal markets. Woodward added in his prepared statement that investors are attracted to Denver’s slightly higher yields and a stable political and tax environment.
Barnett added to Woodward’s comments on Denver and told Multi-Housing News that the city’s multifamily market has grown considerably and that CBRE expects the trend to continue.
“Capital migration from coastal areas into Denver has been a trend for years but had been accelerating as rumors of rent control circulated and actual legislation followed,” Barnett told MHN. “The city has transformed from a secondary market to a primary one in recent years yet the cap rates have not yet compressed to coastal levels.”