Page 32 —
COLORADO REAL ESTATE JOURNAL
— February 4-February 17, 2015
Multifamily
by John Rebchook
A San Francisco-based com-
pany recently paid $53.55 mil-
lion for a 408-unit apartment
community in Lakewood.
Fowler PropertyAcquisitions,
which operates a portfolio of
about 22,500 apartment units
valued at $2.3 billion, bought
Elevate at Red Rocks at 13105
W. Second Place.
The seller was Fairfield Resi-
dential of San Diego.
DavidMartin and PamKoster
of Moran & Co. listed and mar-
keted the community.
“We received a lot of interest
in it,” Koster said.
‘”We ended up receiving
about 20 bids
on it,” she
said.
The com-
m u n i t y ,
which is near
Red Rocks
C o m m u -
nity College,
was built in
two phases,
Koster said.
The first phase was in 1981
and the second in 1999, she
said.
“It was a value-add play, but
at two different levels because
of the different time frames of
construction,” Koster said.
The older phase, she said,
needs more extensive upgrad-
ing than the newer phase.
FPA was extremely familiar
with the area and they like the
Lakewood market, she said.
“They own Westhills, which
is virtually next door, so buying
Elevate at Red Rocks made a lot
of sense for them,” she said.
Westhills has 400 units, giv-
ing FPA a critical mass of more
than 800 units in one location,
she noted.
Koster said Lakewood is
increasingly popular to real
estate investors.
“When you look at the rental
submarket, you are 15 minutes
from downtown.
“While the newer product in
downtown is getting $2 per
square foot, in Lakewood a lot
of properties are available for
$1.25 per square foot,” Koster
said.
The west side also is an
extremely tight apartment mar-
ket, with few vacancies, she
said.
The low vacancy rate allows
owners to raise rates, especially
after they upgrade units, like
FPA plans at Elevate at Red
Rocks.
Some of the newer projects
in Lakewood are getting about
$1.80 per sf, Koster said.
Not only is Lakewood an
easy commute to Denver, either
by car or light rail, but also she
said the area is its own employ-
ment center.
“You look at that market area
and there are health care jobs,
government jobs and retail
jobs,” she said.
“Investors feel like the west
side is a very stable market,”
Koster said.
FPA paid $131,572 per unit
and $142 per sf for the Elevate
at Red Rocks.
“Blended, I think they paid
below replacement cost, when
you consider the age differ-
ence between the two phases,”
Koster said.
Other News
n
Kennedy Wilson
of Bev-
erly Hills paid $20.75 million
for the 143-unit Villas at Holly
apartment community at 6760
S. Glencoe St. in Centennial.
This was part of an area port-
folio sold by
DiNapoli Capital
Partners LLC
of San Jose, Cali-
fornia.
ARA
brokers
Jeff Hawks,
Doug Andrews, Terrance Hunt
and
Shane Ozment
listed and
marketed the community on
behalf of DiNapoli.
n
An unidentified buyer paid
$980,000 for an eight-unit apart-
ment building at 3030 Williams
St. in Denver.
The sale price for the building
in the Whittier neighborhood
equates to $122,500 per unit.
Kyle Malnati
and
Greg John-
son
of
Madison Commercial
Properties
brokered the sale.
“The sellers purchased this
property from the previous
owner in 2013 for just $425,000
and immediately began doing
impactful interior renovations,”
said Malnati.
After owning the property
for less than 18 months, they
decided to sell.
“It’s incredible, really,” Mal-
nati said.
“The sellers more than dou-
bled their initial investment
in little time by executing a
fantastic renovation plan,” he
said.
The renovations paid off not
only as far as getting a high
price, but also as far as a quick
sale.
“We knew it wouldn’t take
long to find the right buyer to
seize this opportunity, and we
were right,” Johnson said.
“The buyer, who plans to self-
manage the property, is thrilled
to have added this to his grow-
ing central Denver portfolio,”
Johnson said.
n
An unidentified buyer paid
$650,000 for the York Mobile
Home Park at 4765 York St. in
Denver.
The park includes 17 single-
wide trailers and a single-fami-
ly home. The purchase equates
to $36,111 per space.
Josh Newell,
a senior adviser
at
Pinnacle Real Estate Advi-
sors LLC,
handled the transac-
tion.
n
An unidentified local buyer
paid $420,000, or $105,000 per
unit and $128.67 per square
foot, for a four-unit apartment
building at 3744 Vance St. in
Wheat Ridge.
The property was construct-
ed in 1959.
Newell
and
Zane Wells,
an
associate adviser at
Pinnacle,
represented the buyer in the
transaction.
s
FPA bought Elevate at Red Rocks.
Pam Koster
