Denver Rental Property Commands $62M
- May 14, 2019
Gelt Inc., a Los Angeles-based firm, has acquired Cedar Run Apartments, a 384-unit community in Denver, Colo., for $62 million. The company purchased the centrally located asset from seller Maxx Properties.
The residential property is situated on 14 acres at 888 S. Oneida St., about 6 miles from downtown Denver. Built in 1970, Cedar Run Apartments underwent renovations between 2012 and 2017 and consists of nine buildings housing a mix of one- and two-bedroom units with an average size of 846 square feet.
Newmark Knight Frank Vice Chairmen Terrance Hunt and Shane Ozment represented the seller in the deal, while an NKF team of Mitch Clarfield and Ryan Greer provided a 10-year, full-term interest-only debt at 70 percent LTV and a 4.2 percent rate on behalf of the buyer through Freddie Mac’s Green-Up program.
Resident amenities at the property include a 27,000-square-foot clubhouse with two racquetball courts, an indoor pool, fitness center and conference room spaces. The community also offers two outdoor pools, three courtyards with picnic and barbecue areas, a playground, sand volleyball court and covered parking.
The new owner plans to upgrade unit interiors with new flooring, cabinets, hardware, lighting fixtures and countertops. Renovations are also planned for the leasing office, business center and gym at the property, with the addition of a dog park, package locker room and an additional barbecue area.
Denver’s multifamily market hit a peak in 2018, with 14,457 units coming online, according to a Yardi Matrix report. Meanwhile, strong job growth and an expanding economy are keeping the metro’s multifamily market humming.