CO Asset Commands $96M
- Dec 14, 2017
Oak Coast Properties has acquired Aurora Hills Apartments, a 47-building, 300-unit apartment community in Aurora, Colo., for $96 million.
“We have four properties, totaling about 2,400 units all around the Aurora market,” Roy Kim, Oak Coast Properties’ principal, told MHN. “This property was on our radar for quite a while and we felt we could increase the rents to get it up to market, especially given the larger average size in Aurora Hills, which is about 300 square feet bigger than most of the comps.”
Overall, this is Oak Coast Properties’ seventh acquisition in the Denver Metro area, upping its portfolio to 3,600 units total.
“This deal is very similar to many of the deals we have done,” Kim said. “We look to create values through operating efficiencies and bringing rents up to market.”
Inside the community
The property is situated on 48 acres and offers a collection of both two- and three-story buildings. Apartment units include one-, two- and three-bedrooms, with seven different floorplans available, the average size being 1,022 square feet. All units include brushed nickel lighting, central heat and air, a dishwasher and trash disposal. Many of the units offer new countertops, a private balcony or patio, stainless steel appliances, walk-in closets, wood-style flooring and updated cabinets.
Community amenities include an onsite fitness center, heated outdoor swimming pool, picnic areas with grill stations, splash park, sports fields, basketball court, volleyball court, tot lots, dog park clubhouse and a business center.
Aurora Hills Apartments will be managed by BLDG Management. At the time of the sale, the community was 94.8 percent leased.
Originally constructed in three phases between 1970 and 1974, the entire community recently underwent a renovation to many of its units. According to Kim, Oak Coast Properties will do an additional $2.5 million upgrade to include exterior repairs, roof maintenance and moisture protection, amenity improvements and additional work on mechanical, electrical and plumbing systems.
Located just north of downtown Denver, within Denver’s Lowry submarket, the property is close by many of the area’s top employment centers, including the University of Colorado’s Anschutz Medical Campus, Gaylord of the Rockies, Amazon’s Fulfillment Center, Walmart’s Ecommerce Distribution Center, Panasonic’s Regional Headquarters and Buckley Air Force Base. It’s also adjacent to the Highline Park and Ballfields and the Aurora Hills Golf Course.
“We’ve always like the Aurora market,” Kim said. “We feel there are strong drivers in the area and given the limited supply, we have seen the leasing trends going higher, and we feel we will see the same thing going on here.”
Aurora Hills Apartments offers easy access to Denver International Airport and to downtown Denver via the light rail.
Pensam Residential provided equity financing for the acquisition. HFF’s debt placement team of Charles Halladay, Lee Redmond and Brock Yaffe assisted in securing a $76.7 million supplemental loan for the buyer through Freddie Mac’s CME Program.
CBRE’s David Potarf, Dan Woodward, Matt Barnett, Brady O’Donnell and Brian Eisendrath represented the seller in the transaction.