Denver—Opportunistic investment firm The RADCO Cos. has grabbed a 512-unit community in the Denver suburb of Lakewood, Colo., for $95.3 million from a local developer. The sale of Parc Belmar represents the company’s entrée in Colorado and is the largest multifamily transaction in The Centennial State this year.
Now that the acquisition is complete, the company’s portfolio includes more than 6,5000 multifamily units in five cities in the Southeast and Midwest. RADCO financed the transaction through a mixture of Freddie Mac debt, preferred equity from The Related Cos., and its own privately funded equity.
The community is comprised of 33 buildings situated on 26.3 acres. RADCO plans to reposition the asset by undertaking a $1.2 million renovation of the clubhouse and leasing center, and will also upgrade units interiors with high-end finishes. The result will be a fresh-faced apartment community rebranded as Ashford Belmar.
“While Parc Belmar is already a strong performing Class B+ asset, RADCO will implement a $5 million capital improvement plan to bring this asset to a Class A level,” says Norman Radow, founder and CEO of The RADCO Cos. “The property is 95 percent occupied and since new apartment construction has been very limited over the past few years, we know the market will not only appreciate our improvements, but also embrace them. By all accounts, Denver is one of the best markets in the U.S.”
Amenities include an indoor Olympic-sized pool, a fitness center with yoga/Zumba, a lake, theater room, business center, steam room, sauna, dog spa and golf simulation.
In 2014, RADCO has already purchased five properties including nearly 1,400 units and requiring a capital investment of $170 million. The company has another four properties under contract that will close this summer. The firm also plans to pursue additional opportunities in the Denver market.
TruAmerica, Guardia and Allstate partner on 1,500 unit portfolio buy
Denver & Seattle—TruAmerica Multifamily, an investment firm founded by Robert Hart and The Guardian Life Insurance Company of America, has acquired a three-property multifamily portfolio from an affiliate of Berkshire Group for $229 million. The group partnered with Allstate Life Insurance Co. in the 1,514 unit portfolio which is the first acquisition between the three companies, and represents a new investment platform.
“On the heels of a momentous first year, we are excited to embark on this new venture with Allstate, starting with today’s acquisitions,” says Hart, president, CEO & Founder of TruAmerica Multifamily. “We are transitioning into more of a multifamily-oriented society and corporate America is taking note. Our new partnership with Allstate signifies our continued commitment to investing in opportunities that provide affordable, workforce housing to fulfill growing demands. Home ownership rates in the United States have declined to their lowest level in almost 20 years while rental demands from almost every age bracket continue to increase. Attractive existing and projected economic fundamentals in Seattle and Denver provide an excellent value-add investment opportunity for this Berkshire portfolio.”
Properties acquired include Berkshires at Lowry (Denver), Ronderosa Villas (Aurora, Colo.) and Carriages at Fairwood Downs (Renton, Wash.). The assets fit with TruAmerica’s investment strategy of targeting high-quality, valued-add workforce housing assets. Plans for upgrades are in the works.
“Guardian is thrilled with TruAmerica Multifamily’s success over the past year,” says Thomas G. Sorell, executive vice president and chief investment officer of Guardian. “Multifamily deals present attractive investment opportunities as they provide current income for our ongoing initiatives and diversification to our overall portfolio.”
GFI exclusively reps $6.5M sale of Brooklyn, N.Y., condo units
New York—GFI Realty Services Inc. announced the sale of a package of unsold condo units in 2781 Ocean Avenue, a seven-story elevator building located in the Sheepshead Bay section of Brooklyn for $6.5 million, or $155,000 a unit.
The package included 42 unsold residential condo units, three community facilities, a laundry room and 11 parking spaces. There are 20 free-market units and 22 rent-stabilized. The property is ideally situated blocks from Emmons Avenue, a commercial corridor which is lined with numerous restaurants, shops and lounges.
Erik Yankelovich, senior director of GFI Realty Services Inc. exclusively represented the buyer and seller in this transaction, both of whom are local investors.
“The seller converted the building to condominiums back in 2007 and was able to sell almost half of the units at very healthy retail pricing,” says Yankelovich. “The deal presents the buyer with the opportunity to upgrade the unsold units and either rent or sell them individually. This is a strong neighborhood with high demand for what are sizable units.”
The 69,586 square foot building was constructed in 1957 and is within close proximity to the Neck Road and Sheepshead Bay subway stations, which service the B and Q lines.