A Denver real estate investment company teamed up with a Los Angeles firm to acquire three multifamily properties in a deal that the broker is calling one of the largest of its kind in metro Denver since 2016.
Officials from Denver-based BMC Investment and Oak Coast Properties, of L.A., said Thursday that they acquired three neighboring apartment buildings comprising 1,023 units near the Denver city limits in Arapahoe County for $177 million. Timberline, Woodhaven and Westwood apartments are east of South Quebec Street and north of East Yale Avenue in an unincorporated section of Arapahoe County, according to property records.
The plan is to renovate and rebrand the trio of buildings as “Ivy Crossing” on the 45-acre property. The apartment facility will be managed by BLDG Management, which oversees more than two dozen multifamily, mixed-use and commercial properties across metro Denver.
BMC officials plan to invest $5 million into the buildings, which were built between 1973 and 1977. Upgrades will focus on the buildings’ exteriors and amenity components, which haven’t been upgraded in more than four decades. The firm also plans to centralize a community leasing center, bring a shuttered 5,000-square-foot clubhouse back to life and update landscaping.
The facility includes a swimming pool and fitness center.
‘Last of its kind’ opportunity
The deal was brokered by Terrance Hunt and Shane Ozment of Newmark Knight Frank Multifamily. Hunt said the sale marked the largest number of units in a single trade and the largest multifamily transaction by dollar volume in metro Denver since September 2016.
It’s also the ninth and largest investment partnership between BMC and Oak Coast Properties.
HFF (NYSE: HF) arranged the 15-year, full-term, interest-only $120 million financing for the acquisition through Freddie Mac’s Optigo Social Impact initiative.
“Not only does it demonstrate our ability to execute an extremely complicated transaction — combining three properties into one to create one of the largest multifamily assets in Denver — but it also further solidifies the strong partnership between Oak Coast Properties, BMC Investments and BLDG Management,” Matt Joblon, CEO of BMC Investments, said in a statement.
Hunt, with NFK, called the sale, “a phenomenal opportunity — the last of its kind in the Denver metro area – to purchase legacy assets with such multifaceted upside potential.”
Two other apartment complexes in South Denver recently sold for $74.3 million and $72 million. New York-based The Praedium Group sold Helios, a 258-unit apartment complex at 7901 E. Belleview Ave., to BREIT MF East Belleview Avenue LLC, a corporation tied to Chicago real estate investment firm EQ Office, for $74.3 million. TruAmerica Multifamily acquired a 312-unit apartment complex at 3400 S. Lowell Blvd. for $72 million.
The apartments are located within the Cherry Creek School District, one of the top ranked districts in metro Denver — something that’s expected to be marketed when attracting new tenants. Ratings and review company Niche ranked the district No. 7 on its 2019 list of Colorado’s top school districts.
The buildings are less than two miles from RTD’s Yale Station light rail station. They’re also near the High Line Canal Trail.
Woodhaven Apartments were the first of the three buildings constructed in 1973 and were originally called the Latin Quarter and known as the highest-end luxury property in metro Denver at the time, Hunt said.