CREJ - Journal

42 / 100

Page 6AA — COLORADO REAL ESTATE JOURNAL — January 7-January 20, 2015
by John Rebchook
The Phoenix Realty Group
has paid $53.3 million for the
600-unit Chelsea Park apart-
ment community in Aurora.
The $88,833 per unit it paid
is believed to be one of the
highest prices paid for a 1970s
vintage apartment community
in Aurora.
The community, at 11850 E.
Maple Ave., was built in 1972.
It was sold by Bridge Realty
Capital of Murray, Utah, which
acquired it in 2012 for $37.4
million.
The CBRE team of David
Potarf, Dan Woodward and
Matt Barnett listed the com-
munity.
The Starwood Capital Group
of Greenwich, Connecticut,
provided the equity to Phoenix
in the purchase.
The sales price represents a
38.3 percent premium to what
Bridge paid: $66.87 per square
foot for the 559,760-sf property,
while Phoenix paid $92.21 per
sf, a 42.4 percent increase by
that metric.
“It had a loan assumption,
too,” Potarf said. “There was
a pretty sizeable prepay fee, so
really, the buyer ended up pay-
ing another $3 million,” which
put the actual price at about
$56 million.
Potarf said there was a great
deal of interest in the property.
“We received a lot of offers;
they were in double-digit fig-
ures,” Potarf said.
“The cap rate was right where
it was needed to be,” he said.
Phoenix, he said, liked the
units because they were larger
than you find in today’s mar-
ket, which makes them appeal-
ing to families.
“Also, it is on almost 50 acres,
so it really is a 50-acre cam-
pus,” Potarf said.
“That is really rare,” he said.
“There is really not anything
like it.”
Despite the price Phoenix
paid, it was still substantially
below replacement cost, he
said.
“If you add in that $3 mil-
lion, they paid over $90,000 per
unit, but that is still well below
replacement cost,” Potarf said.
“And, frankly, you couldn't
find another 50-acre parcel like
this one,” he said.
It also provides a value-add
opportunity, he said.
“Bridge renovated most of
the common space and the big-
ticket items and I think Phoenix
is going to continue to renovate
the apartments,” Potarf said.
Phoenix also liked the com-
munity’s proximity to Inter-
state 225 as well as a new light-
Environmental Site Assessments
Asbestos Surveys
Property Condition Assessments
Capital Needs Assessments
Colorado-based; national reputation; international
expertise
More than 85,000 professional inspections and
written reports since 1975
Compliant with ASTM standards
SM
1-800-248-1976
Commercial Real Estate
D u E D i l i g E n C E
Uninspected (or poorly inspected) property is
not an asset—it’s a liability. Call the west’s
leading commercial inspection firm today.
colorado | Texas | california | Wyoming | arizona | nevada
Multifamily
The 600-unit Chelsea Park sits on almost 50 acres in Aurora.