Security Properties, a national real estate investment, development and operating company, had expanded its Colorado multifamily holdings with the purchase of Highlands at Red Hawk, a 56-unit property in Castle Rock, Colo., for $16.5 million. The Seattle-based firm now owns 12 assets in Colorado totaling 2,393 units.
“The Highlands at Red Hawk is a quality addition to our growing Colorado portfolio. The boutique size of the property provided a unique opportunity for a long-term investment in an attractive location,” Tad Johnson, senior investment manager at Security Properties, said in a prepared statement. “This asset will be wholly owned by Security Properties, and Castle Rock remains a target submarket for future investment.”
The multifamily asset will be managed by Security Properties Residential, an affiliate of Security Properties.
Built in 2018, the Class A, garden-style community is situated on 4.55 acres. The units are spread out across five residential buildings and feature a variety of large, townhome-style floorplans. Each unit has direct-access garages, designer backsplashes, granite countertops, stainless steel appliances, in-unit full-size washers and dryers, and walk-in showers with custom tiles. Community amenities include a swimming pool, clubhouse, and dog wash station.
Castle Rock is located between Denver and Colorado Springs, Colo.—the state’s two biggest population centers—in Douglas County, the fifth wealthiest county in the U.S. In February of 2018, Security Properties teamed up with ReCap, a Reinsurance Group of America company, to acquire The Bluffs at Castle Rock, a 220-unit community, from Jackson Square Properties for $50 million. This was the joint venture’s sixth purchase.
Castle Rock’s population has increased by 39 percent between 2010 and 2018, adding more than 18,000 people and outpacing the tremendous growth in other parts of the Denver MSA. Already the 10th fastest-growing city in the U.S., Castle Rock is expected to grow an additional 34 percent by 2030. The city is particularly attractive to families. Located approximately 30 miles from downtown Denver, Castle Rock is about 40 miles from Denver International Airport and is also near the Southeast Business Corridor, which has more than 260,000 employees and 43 million square feet of office space.
Other Colorado transactions in recent months include the $41 million purchase of the 220-unit Willows at Printers Park in Colorado Springs in April and the recapitalization of Village Crest Apartments, a 120-unit affordable property in Commerce City, Colo., in May.
Late last month, Security Properties focused on Oregon, where it teamed with Japan-based Tokyu Land Corp. to acquire Sanctuary, a 182-unit, Class A community in Portland for $58.3 million. This was Security Properties’ 10th asset in the Portland MSA and Tokyu Land’s first investment in the city. In November, Security Properties added its ninth Portland MSA asset with the acquisition of Arbor Creek, a 440-unit Class B garden-style community in Beaverton, Ore., for $84.3 million.
Also in late December, Security Properties, in a joint venture with USAA Real Estate, sold a Seattle-area property—the 309-unit Sparc Apartments—for $150 million to a private investor, according to Yardi Matrix.
Image courtesy of Security Properties