January 6-January 19, 2016 —
COLORADO REAL ESTATE JOURNAL
— Page 31
Multifamily
by John Rebchook
Jackson Square Properties
paid $63.3 million to the Lynde
Co. for the Bluffs at Castle Rock
and the Aurora-based Centre
Pointe East apartment commu-
nities.
The properties were mar-
keted separately and unpriced.
Prospective buyers had an
option to buy them as a port-
folio. They were listed by Ter-
rance Hunt, Shane Ozment, Jeff
Hawks and Doug Andrews of
ARA Newmark.
The sales price equates to
$147,897 per unit.
Together, the two communi-
ties have a total of 428 units.
The Bluffs at Castle Rock was
99 percent occupied at the time
of sale, while Center Pointe
East was 96 percent occupied.
Lynd, based in San Antonio,
is a family of real estate com-
panies, which individually and
through different ownership
structures engages in the busi-
ness of management, owner-
ship and development of mul-
tihousing assets.
Jackson Square, based in San
Francisco, owns more than
3,000 units in the metro Denver
area.
The Bluffs at Castle Rock, a
Class B asset, was constructed
in 1998 and is located at 483
Scott Blvd. in Castle Rock.
Eighty-eight of the 220 units
have been “lightly” renovated
and are achieving rent premi-
ums. “We had a tremendous
amount of interest and compe-
tition for The Bluffs at Castle
Rock,” Ozment said.
“We received over 20 offers
and took almost half of those to
a best and final, due to pricing
being extremely crowded at the
top,” he continued.
“This was a true value-add
opportunity that has seen mini-
mal renovations to select units.
The buyer believes in the strong
underlying fundamentals of
the Castle Rock market and
the lack of new supply being
built,” according to Ozment.
Center Pointe East also is a
value-add opportunity.
It is a Class B asset, accord-
ing to Ozment. Center Pointe
East is at 15490 E. Center Ave.
in Aurora.
The 208-unit, 1999-construct-
ed property sold for $31.1 mil-
lion and the 75 units the seller
partially renovated are also
achieving rent premiums.
Jackson Square has the oppor-
tunity to continue the renova-
tion program and capitalize on
the proximity of Center Pointe
East to the massive Fitzsimons
Life Sciences medical campus,
according to Ozment.
The community is only 10
minutes from Fitzsimons Inno-
vation Campus, an integrat-
ed, state-of-the-art bioscience
development.
The 578-acre campus is
undergoing a $4.3 billion trans-
formation and at build-out
will comprise over 18 million
square feet and have 43,000
high-paying jobs.
Many of the workers are
expected to rent, rather than
buy a home, especially when
they are first hired.
Other News
n
A Denver-based limited
liability company,
3120 W.
Iliff Ave.,
paid $4.8 million to
Williamsberg Apartments
of
Denver LLC
for the 56-unit
Williamsberg apartment com-
munity at 3120 W. Iliff Ave. in
Denver.
The building, constructed in
1983, sold for a 7.5 cap rate. The
sales price equates to $84,251
per unit and $127 per square
foot.
John Laratta
of
Berkadia
brokered the deal.
Laratta called the sale a “clas-
sic value-add opportunity” for
a building that needed a mod-
erate renovation.
The buyer expects to spend
$3,000 to $5,000 to upgrade
each unit, which is projected to
result in a double-digit return,
Laratta said.
n
An unidentified buyer paid
$1.71 million, or $114,00 per
unit and $155.55 per sf, for a
15-unit apartment building at
1900-1960 Upham St. in Lake-
wood.
The all-brick property, con-
structed in 1963, has slightly
less than 30,000 sf of land with
two separate apartment build-
ings in a quiet area.
“The out-of-state buyer had
been looking very seriously for
a few months at much larger
assets in more urban locations;
however, the lack of inventory
and compressed returns made
him re-evaluate markets and
price points,” said
Robert Law-
son,
senior adviser at
Pinnacle
Real Estate Advisors,
who rep-
resented the buyer in the trans-
action.
“As soon as this opportu-
nity came up, we submitted
a quick, 45-day close with an
above-asking-price offer and a
nonrefundable earnest money
contingency to make sure the
seller knew we were serious,”
Lawson said.
n
An unidentified buyer paid
$810,000 for a seven-unit apart-
ment building at 5791 S. Pearl
Centre Point East in Aurora was purchased by the Lynde Co.
The Bluffs at Castle Rock recently sold.
Beartrax is a general contractor with specific focus
on interior and exterior re-development of
multi-family properties.
