ARA Brokers Sale by Lender of 1,398-Unit Portfolio in Denver
- Oct 15, 2010
Denver—ARA brokered the sale of three-property, 1,398-unit multifamily portfolio in metro Denver. The buyer, Jackson Square Partners, a California-based apartment investment group, purchased the portfolio for $62,000,000.
This is Jackson Square Partners’ first acquisition in the Colorado market. ARA Denver-based principals, Jeff Hawks, Doug Andrews, and Terrance Hunt, along with vice president, Shane Ozment represented an undisclosed lender in the transaction.
“Jackson Square Partners is a lot like many of our current buyers,” says Hawks. “We have had 240 offers from 119 different buyers over the last 18 months. Of those offers, one-third have been buyers who are experienced and qualified but have never owned apartments in the metro Denver market.”
“The record absorption of apartments, decreasing vacancy and increasing rents has lured many new buyers to the Colorado apartment market,” adds Andrews.
Built in 1984, Hickory Ridge is a 688-unit community located in Aurora, Colo. The property enjoys a great location with excellent visibility and convenient access to the Southeast Business Corridor, Denver International Airport (DIA), the Aurora City Center, Town Center at Aurora, Lowry, and the Fitzsimons Redevelopment. The property was purchased for $33,000,000, representing a price per unit of $47,965 and a price per square foot of $58.52.
The Lakes at Monaco Pointe, located in Denver, CO, sold for $17,000,000, representing a price per unit of $39,906 and a price per square foot of $55.78. Constructed in 1975, the property offers 426-units comprised of five rental buildings that range from three to five stories. The property is situated on over 15 acres and boasts an attractive unit mix. Located minutes from the Southeast Business Corridor, Cherry Creek and Denver University (DU), The Lakes at Monaco Pointe has a great central Denver location. Jackson Square Partners saw the potential to renovate the property and reposition it to take advantage of its location.
“Being just north of the Southeast Business Corridor and close to a light rail station really appeals to apartment renters,” says Andrews. “The rents in the Denver Technological Center (DTC) and along the light rail are rising and will continue to rise into the foreseeable future.”
Also located in Denver, The Lodge at Aspen Grove was the final acquisition in the portfolio. Jackson Square Partners purchased the property for $12,000,000, representing a price per unit of $42,254 and a price per square foot of $59.15. The Lodge at Aspen Grove is a well-designed community built in 1970. The property is situated conveniently between downtown Denver and the Southeast Business Corridor, two of Denver’s largest employment centers.
Jackson Square plans to continue the renovation started by the previous owner by upgrading and expanding the amenities of the community.
The metro Denver portfolio is the largest portfolio to sell in Colorado since the market’s downturn and one of the few portfolios to be foreclosed on, according to Hawks.