Pembrook Originates Acquisition, Renovation Financing for Denver-Area Apts.
- Feb 19, 2014
Lakewood, Colo.—Mountain Vista, a 257-unit multifamily property located in the Denver suburb of Lakewood, has obtained an $18.6 million bridge loan to facilitate its sale. The funding, originated by Pembrook Capital Management, will allow the as-yet unnamed buyer to acquire the property.
Besides acquisition, the buyer will undertake complete interior renovations to the apartment units, according to the lender. The funding will also enable to buyer to finalize various exterior renovations, including clubhouse/office construction, roof replacements, repairs to stair landings and catwalks, asphalt repairs, clubhouse equipment/furniture, and exterior paint.
Mountain Vista, located at 434-485 S. Wright Street, consists of two buildings. The larger of the two is Alpine Mountain Vista, a 137-unit garden property that features four two-story buildings. The other is Green Mountain Vista, a 120-unit garden property comprised of three two-story buildings. Mountain Vista is currently 98 percent occupied.
Investors have shown strong interest in Denver-area multifamily properties recently, with buyers especially keen to find properties near, or relatively near, the area’s growing light-rail system. Though not a transit-oriented property, Mountain Vista has fairly easy access to the Federal Center light rail station (along with the Denver Federal Center, which is the largest concentration of federal offices outside of Washington, DC).
According to investment specialist Marcus & Millichap, demand for multifamily units will be strong this year in greater Denver, since employment growth is at one of the fastest paces in the nation — nearly 50,000 jobs will be added by the end of 2014. Supply is up as well, with about 4,000 units under construction in the CBD alone. Metro-wide vacancies are expected to rise a little this year, but so will rents as new properties come on line.