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June 17-June 30, 2015 — COLORADO REAL ESTATE JOURNAL — Page 5
by John Rebchook
Greystar Real Estate Partners of
San Francisco recently paid $63.8
million for the Riverton on the
Platte apartment community in
Sheridan, one of the latest deals
showing the continued strong
interest in the Denver-area apart-
ment market.
Greystar, one of the world’s
largest apartment management
companies, paid the equivalent of
$201,899 per unit for the 316-unit
apartment community at 3400 S.
Platte River Drive, just off South
Santa Fe Drive, near West Hamp-
denAvenue.
Records showthatWastachPre-
mier Communities, the seller, had
purchased the community, which
was built in 2009, for $48.25 mil-
lion, or $158,690 per unit.
In other words, Greystar paid
about 32 percent more than
Wastach.
Riverton on the Platte is a
unique property in that, while
constructed fairly recently, it also
has a big value-add component,
said Pat Stucker, who sold the
property with fellow JLL team
members Ray White and Travis
Hodge.
Wastach, he said, took 50 of
the units and outfitted them with
high-end finishes, such as gran-
ite countertops, wood floors and
upgraded cabinets.
“Even though it was built in
2009, it had a very nice value-add
component,” Stucker said.
Investors are especially inter-
ested in value-add deals, as the
value-add portion typically will
return a much greater gain than
the purchase of the units them-
selves.
Riverton on the Platte repre-
sented the best of both worlds,
in that it was relatively new con-
struction, as well as providing the
value-add component, Stucker
said.
That is pretty rare, he said.
“Every developer does it a lit-
tle different, but in general, the
newer product is built to higher-
quality finishes and you don’t
find differentiations in finishes
throughout the community,”
Stucker said.
In addition to the value-add
component, Riverton on the
Platte benefits from a great loca-
tion, he said.
For one thing, it isn’t threatened
by a lot of units, which could
drive down rents.
“I think that is an underserved
area as far as multifamily hous-
ing,” Stucker said.
“It is an area that doesn't have a
lot of new construction,” he said.
Also, renters benefit from
the River Point at Sheridan, an
821,230-square-foot retail center
that includes a Regal Cinemas
movie theater, Super Target, Cost-
co and other retailers.
“It’s a great retail center, right
out their doors,” Stucker said.
Riverton on the Platte also is
about a 15-minute drive from
downtown Denver and is across
the street from the Southwest
light-rail line.
“You can easily take light rail to
downtown,” Stucker said.
And for those who prefer to
bike, it is minutes form the South
Platte River trail. Another nearby
amenity is the Englewood Golf
Course.
“I think Riverton on the Platte
has attracted millennials and
other younger professionals who
like the easy access to downtown,
without having to pay down-
town rental rates,” Stucker said.
The average apartment rental
rate in that area is $1.40 per sf,
about half of what new down-
town Denver apartments are
charging.
It also has drawn older renters,
who also enjoy its location and
amenities.
“It has a very nice clubhouse
and a resort style swimming
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