Colorado Apartments Change Hands
- Jul 07, 2016
Thornton, Colo.—Redwood Capital Advisors has acquired Newport Village, a 220-unit community in Thornton, Colo., from Seagate Colorado Newport Associates LLC.
Constructed in 1988, Seagate originally acquired the property in March of 2013, and since has invested more than $1.73 million to upgrade the community’s swimming pool, landscaping, exterior paint and siding repairs, balcony replacement and approximately 25 percent of the unit interiors.
“Newport Village was a well-located asset that we identified as prime candidate for our value add program,” Trent Isgrig, Seagate Colorado Partner’s principal, told MHN. “There was significant opportunity to push rents by way of new management and a capital infusion to address deferred maintenance, improve amenities and upgrade select units.”
Located at 8901 Colorado Boulevard, the garden style apartments offer 220 one- and two-bedroom units situated in more than 30 buildings. There are 100 town homes spread over 25 buildings and five, three-story buildings which contain 120 flat-style units.
On-site amenities include a leasing office, outdoor heated swimming pool with spa, barbeque grills, playground, dog park and walking trails.
“We purchased the property in 2013 from a lender that had foreclosed on the previous owner,” Isgrig said. “We invested in excess of $1.73 million curing deferred maintenance, upgrading amenities and renovating approximately 25 percent of the unit interiors. All of which resulted in net rent increases of more than 31 percent during our period of ownership.”
The property is just 15 minutes from Denver, and has access to employment corridors from both Interstate 76 and 25.
According to Marcus & Millichap’s Summer 2016 Multifamily Market Report, the pace of robust demand for rental housing in the area will remain consistent with the past six years. The report forecasts that new renters will continue to flow into the apartment market evident by the further decline of the unemployment rate to six percent among individuals age 20 to 34, as this segment has a high propensity to rent.
David Martin and Pamela Koster of Moran & Company represented Seagate Colorado Newport in the transaction.