What's Old is New Again: Value-Add Capital Program Aims to Modernize Community Interiors
- Jan 18, 2012
Denver—CBRE Global Investors is taking the phrase “don’t judge a book by its cover” to heart. The real estate investment management firm has purchased Heritage Creek, a 324-unit garden-style apartment community built in the ‘90s, and it plans to initiate a value-add capital program to modernize the interiors.
The Denver-area community, which features 18 two- and tree-story garden-style buildings with one-, two- and three-bedroom units, will continuously have its apartments updated as people move in and out.
“[Heritage Creek is] has curb appeal and is still very fresh and modern,” Stephen Gullo, senior director, CBRE Global Investors, tells MHN. “For the interiors, well, it’s a 17-year-old property. We had an opportunity to enhance the appeal.”
According to Gullo, the unit modernization, which is being enacted to compete with other local apartment buildings, will include fixing the hardware in the bathrooms, as well as new countertops in the kitchen. The plumbing will also be fixed, and appliances will be upgraded.
Additionally, Gullo says there will be a stress on energy-efficient appliances being put into the units, including Energy Star washers and dryers.
Heritage Creek’s amenities include a clubroom and lounge, a business center, free Wi-Fi, a fitness center and a pool. Additionally, the community is located near schools and employment centers, which Gullo says will attract families and young professionals.
Ulimately, Gullo feels that the value-add capital program will help generate a lot more revenue.
“This is a very desirable area,” he says. “We can execute [this program] quite well and efficiently.”