Investors Snap Up Suburban Denver Apartments for $40M
- Feb 25, 2014
Thornton and Federal Heights, Colo.—Two Colorado apartment properties recently changed hands: the 140-unit Quail Ridge Apartments in Thornton and the 220-unit Hunters Cove Apartments in Federal Heights. ARA Denver-based principals Terrance Hunt, Shane Ozment, Jeff Hawks, and Doug Andrews represented the seller, Denver-based real estate investor RedPeak Properties, which sold to separate buyers.
Green Leaf Partners, a Danville, Calif.-based real estate investor, purchased the 1985-vintage Quail Ridge for $15.8 million, which is about $112,500 per unit or $148 per square foot. The property was 95 percent occupied at the time of closing. Thornton is a north suburb of Denver.
Walnut and Main, a Boulder, Colo.-based family real estate investment company, purchased the 1987-vintage Hunters Cove for $25 million, which is about $113,600 per unit, or $151 per square foot. Hunters Cove was also 95 percent occupied at the time of closing, and Federal Heights is also north of Denver.
According to Hunt, both buyers were seeking 1980s value-add opportunities in strong suburban submarkets, and both properties ought to benefit from the northern corridor’s continued growth, along with a strong market overall in metro Denver. Both buyers plan to continue renovations to the properties to drive rents.
Denver is currently one of the fastest-growing U.S. metros, especially in terms of job creation. According to investment specialist Marcus & Millichap, employment growth will add nearly 50,000 jobs to metro Denver by the end of 2014, and investors are anticipating strong household formation as a result. “Assets in need of repositioning are garnering strong investor interest and range in quality, amenities and size,” the company’s latest report on the Denver market notes.