Avanath Acquires Affordable Asset in Denver
- Jul 28, 2017
Avanath Capital Management LLC has purchased Depot Square, a 71-unit affordable housing community located in Boulder, Colo. The company— which has already invested more than $1 billion in affordable housing properties throughout the U.S.—acquired the community for $13.6 million from local developer Pedersen Development, according to Yardi Matrix. Shane Ozment of ARA Newmark represented both the buyer and the seller in the transaction.
The Class A, LEED Gold certified property was built as a component of Boulder Junction, a 160-acre mixed-use, transit-oriented development which includes a 150-key hotel, a restaurant, five-story parking structure and an underground TRD bus station.
Depot Square consists of a four-story building consisting of one- and two-bedroom units averaging 810 square feet. Amenities include a fitness center, a business center, a community room, four laundry facilities and a total of 85 parking spaces. Avanath plans to implement light capital improvements and improve operational efficiencies to drive value and increase net operating income for the asset.
Located at 3195 Pearl Parkway, Depot Square is situated directly across the street from Google’s new 330,000-square-foot office campus, which is slated for completion by year-end. IBM Corp., Ball Aerospace, Lockheed Martin and Oracle are among other high-tech companies that are in close proximity of the property.
“As a newly-constructed affordable community within a mixed-use, transit-oriented development, Depot Square presented a compelling investment opportunity to capitalize on the demand for housing near major jobs, transit options, and retail amenities, while also maintaining affordability in one of the most cost-burdened markets in the state,” John Williams, president & CIO of Avanath, said in a prepared statement.
Image courtesy of Yardi Matrix