Buchanan Street Partners Makes $74M Colorado Purchase
- Sep 22, 2020
Buchanan Street Partners has expanded its Colorado multifamily holdings with the acquisition of The Vibe Apartments, a 276-unit, Class A+ community in Fort Collins, Colo., for $74 million from Milestone Development Group.
The sale price, which was $268,116 per unit and $306.79 per square foot, was a record for the Fort Collins market in Northern Colorado. The buyer assumed the sellers’ existing HUD loan, avoiding a prepayment penalty of approximately $4.5 million, or $16,000, per unit. The acquisition was Buchanan Street Partners’ second transaction with both Milestone Development and Newmark Knight Frank, which represented the seller. In February 2018, Buchanan Street Partners purchased Luna Bella, a newly-built Class A apartment community in Lafayette, Colo., for $60.3 million from Milestone Development. NKF Vice Chairmen Shane Ozment and Terrance Hunt represented Milestone Development in both transactions with Buchanan Street Partners.
The Vibe Apartments, built in 2018, consists of 12 buildings on 10 acres of land. It was 93 percent occupied at the time of the sale. The community is located at the south end of Fort Collins, which is the fastest growing area of the city. The population of Fort Collins has increased 60 percent since 2010. The Vibe is located in close proximity to employment centers in Northern Colorado, including the Harmony Business Corridor. According to NKF Research, there are about 1,200 businesses and 23,500 jobs along the corridor in numerous business parks. The Vibe is directly on the Route 16 bus line, providing connection to major retail and entertainment throughout Fort Collins.
Buchanan Street Partners said in a prepared statement the purchase is part of the firm’s multifamily investment strategy focusing on acquiring high-quality assets in markets with strong fundamentals. The firm now owns four assets in Colorado spread across the Front Range, including the 328-unit Creekside at Palmer Park Apartments in Colorado Springs purchased in December 2018 for $72.5 million from Griffis/Blessing.
The company plans modest operational changes to The Vibe to position it as a stabilized core asset that will benefit from the submarket’s positive fundamentals and long-term forecasted growth. Ozment and Hunt said the property has top-notch amenities, including a two-story, expansive clubhouse that has numerous indoor and outdoor components such as: a junior Olympic salt water lap pool and pool deck with eight natural gas barbecues and seating; spa, sauna and steam room; outdoor kitchen and dining area; seasonal car wash; large package concierge; pet wash; bike wash; fitness and yoga study with spin bikes; and a coffee shop.
The apartments have high-end amenities including plank flooring, oversized balconies with storage closets, stainless-steel appliances, granite countertops, tile backsplashes, spacious pantries and USB outlets.