Turner Acquires Denver-Area Workforce Housing
These 1980s-vintage properties last changed hands in 2018.
Turner Impact Capital has entered the Denver market with the acquisition of two workforce housing communities in suburban Aurora, Colo. Totaling 353 units, the purchases are the most recent by Turner Multifamily Impact Fund III to both preserve workforce housing and provide investors with risk-adjusted returns.
The two multifamily properties are the 165-unit Silverbrook and the 188-unit Canterra at Fitzsimons. With an address at 15403 E. 1st Ave. in Aurora, Silverbrook is a garden-style community located on seven acres. It features nine three-story residential buildings.
Constructed in 1984, the Silverbook offers one- and two-bedroom apartments featuring open kitchens with upgraded cabinets, in-unit washers/dryers and private balconies or patios. The community includes a pool, basketball court, fitness center and outdoor grilling area.
The Silverbrook lasted traded hands in October 2018 for $30.7 million, according to Yardi Matrix data. It was acquired by CapitaLand as part of a larger 16-property portfolio transaction. The community is 99 percent occupied.
Located at 358 Potomac Way in Aurora, Canterra at Fitzsimons is also a garden-style community, but incorporates two 12-story residential buildings. Features and finishes of the one- and two-bedroom units include fully appointed “peek-a-boo kitchens,” wood-style flooring and carpeting, in-unit washers/dryers and private balconies or patios.
The community was completed in 1985. Canterra Fitzsimons includes a pool, clubhouse, covered parking and outdoor barbeque spaces.
The last sales price for Canterra Fitzsimons, registered in October 2018, was $30.1 million, according to the same data. It was part of the same portfolio sale, acquired by CapitaLand from Starwood Capital Group. The community is 97 percent occupied.
Meeting the criteria
Both the apartment communities meet the Turner Multifamily Impact Fund III’s criteria of delivering affordable workforce housing in densely populated and diverse areas near employment hubs. Residents typically earn up to 80 percent of Area Median Income. They include teachers, police officers, healthcare workers and others.
These renters typically have earnings too high to qualify for subsidized housing but find it difficult to afford higher-cost housing proximate to employment centers. Turner Impact intends to begin offering customized enrichment programs in education, health and safety to improve the quality of life and satisfaction of the communities’ residents.
Situated 10 miles southeast of Downtown Denver, Aurora is the third-largest Colorado city. Along with neighboring Denver and Lakewood, Aurora enjoys a healthy job market. The two workforce communities are near major employers Amazon, the Denver International Airport, HealthONE and CenturyLink.
Employment and population expansion are two of the main factors aiding in Denver’s recent rent growth rebound. On a trailing three-month basis through July, average advertised asking rents rose 0.5 percent to $1,960. Development activity was also strong in the metro, yet new construction decelerated.
Another workforce housing community, also in Aurora, changed hands earlier this year. The Advenir Del Arte Apartments, featuring 351 units, traded for $70.5 million. Now rebranded as The Joliet at Lowry, the property consists of 17 three-story buildings completed in 1986.
