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COLORADO REAL ESTATE JOURNAL
— December 16, 2015-January 5, 2016
Multifamily
to fly from Denver to Bozeman,
Montana, where they sold two
properties.
But they didn’t mind.
“Bozeman is really a neat town
with a great vibe,” Hellman said.
Although much smaller than
Denver,Bozeman, hesaid, reminds
him a bit of Denver’s Union Sta-
tion neighborhood, crossed with
the charm of downtown Brecken-
ridge or Durango.
“Bozeman has really great res-
taurants and great bars,” Hellman
said.
“And skiing is out your back
door at Bridger Bowl and Big
Sky,” he said.
“AndwithMontana State being
right there, it is filled with young
people,” he said.
The biggest community they
listed was the 161-unit Mountain
View.
Mountain View was built in
1996 and the average unit size is
995 square feet.
Although a nondisclosure
agreement prevents him from
releasing the sales price, Moun-
tain View was listed at $22.5 mil-
lion.
“We ended up with 15 offers on
it,” Hellman said.
Prospective buyers were from
Colorado, Utah, California, North
Carolina and Texas.
The Utah-based seller had tried
to put some United States Depart-
ment of Housing and Urban
Development debt on the prop-
erty, but was unable to do so.
During that process, it received
an unsolicited offer for it.
“They called us for some advice
and we came with a bigger value
for it, even though apartments
are kind of hard to value in Boze-
man,” because the market is so
small and so few communities
trade hands, Hellman said.
“It’s hard to figure out what the
cap rate should be when hardly
anything ever sells,” and there is
no good database of transactions
like you would find in Denver.”
It is, however, an extremely
tight market.
“Basically, there is a fractional
vacancy rate,” Hellman said.
The other sale was for the
33-unit Blackmore Apartments.
It was listed at $4.1 million.
“It’s the oldest apartment build-
ing in Bozeman,” having been
built in 1913, Hellman said.
“It was designed by a very
famous architect, Fred Wilson,”
he said.
The building is on the National
Register of Historic Places.
“Being a 100-year-old building,
it needs some tender loving care,”
Hellman said.
They ended up receiving four
offers for Blackmore.
“The buyer is a private indi-
vidual out of North Carolina,”
he said.
Hellman said he would love to
do more deals in Bozeman.
Hellman said Bozeman’s apart-
ment market reminds him of
where Denver’s apartment mar-
ket was in 2012.
“I think the Bozemanmarket has
a lot of legs and a lot of running to
do,” Hellman said.
s
Gibraltar
Andy Hellman and Justin Hunt of ARA Newmark recently sold Mountain
View in Bozeman, Montana.
SM
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