14 / 48
Page 14 —
COLORADO REAL ESTATE JOURNAL
— December 7-December 20, 2016
Caster estimates construction
costs will be about $300 per sf
when the building gets under
way, which would make the
core-and-shell roughly $24 mil-
lion.
Boulder Industry & Arts
Center is designed to be highly
sustainable.
While there are numer-
ous communal workspaces
in Boulder – Galvanize, Fuse,
Impact Hub, Intelligent Office,
PivotDesk, “There’s nothing
like this concept,” Caster said.
“It’s not the typical think tank
concept where you just come
in and rent a space. You can
actually have an office address
there, and we’ll also have some
form of restaurants as well, so
you never really have to leave
that space.”
Although it’s early in the
design process, Caster is
confident in the outcome. In
Coburn, “We hired a local firm
that knows Boulder very well,
and that’s going to give us
a finished product that most
people will be happy with,” he
said.
s
Communal
Continued from Page 1in the deal, but closely tracks
income-producing real estate in
the Denver area.
Value deals, such as this one,
always attract a lot of buyers,
and Pembrooke on the Green
was no exception.
“The current owner had reno-
vated less than 50 percent of
the units, which gives the new
buyer a real value-add oppor-
tunity,” Potarf noted.
The renovation of Pembrooke
on the Green will include:
• Extensive upgrades to land-
scaping and outdoor furniture;
• Parking lot, concrete, stair,
roof and gutter repairs; and
• Exterior upgrades, includ-
ing to the leasing office, pool,
clubhouses and laundry rooms,
and mechanical work, includ-
ing electrical and plumbing
work.
“Our capital improvements
to the community, along with
improved property manage-
ment and oversight, will allow
us to bring rents in line with
similar market-rate properties
in the region and drive addi-
tional ROI,” said Phillip Nahas,
Oak Coast Properties’ co-found-
er and managing partner.
“This asset continues OCP’s
tradition of identifying, acquir-
ing and adding value to superi-
or assets acquired with conser-
vative underwriting and supe-
rior management and produc-
ing above-market risk-adjusted
returns for our investors,” he
added.
Also, the size in the area was a
selling point.
“It’s not very often that you
acquire that many units in one
purchase,” Potarf said.
Oak Coast Properties paid
$133,884 per unit, while Bridge
Realty Capital paid $52,346 per
unit.
Oak Coast Properties paid
about $206 per square foot for
the community, while the seller
paid about $80.42 per sf.
Oak Coast Properties has ear-
marked $1.9 million in capital
improvements for its value-add
acquisition.
“This acquisition marks our
firm’s largest to date and brings
our Denver portfolio to more
than 2,300 units,” Nahas said.
He noted the group has a
portfolio in the metro area val-
ued at almost $1 billion.
“With the continued strategic
alliances we have with our capi-
tal partners, we are commit-
ted to achieving above-market
risk-adjusted returns through
our investment strategy in Den-
ver and other strategic markets
across the country,” according
to Nahas.
The purchase illustrates how
bullish his company is on the
Denver area multifamily mar-
ket, according to Nahas.
The company noted that with
more than 50,000 residents mov-
ing into the Denver area annu-
ally and for-sale new home con-
struction remaining relatively
sluggish, rental demand con-
tinues to push upward. Yearly
demand for rental units is an
expected 17,000 apartments,
while new rental unit projec-
tions in both 2016 and 2017
anticipate only 14,000 new units
coming to market.
“Denver’s growing popula-
tion is putting significant pres-
sure on the housing market,
with new unit deliveries unable
to keep up,” Nahas said.
“Positive employment growth
combined with these force-
ful market dynamics provides
a ripe opportunity to drive
returns through the upgrade of
existing apartment assets such
as Pembrooke on the Green,”
he said.
Originally built from 1974 to
1980, Pembrooke on the Green
boasts a current occupancy of
95 percent.
The community includes 959
apartments set within 37 three-
story buildings and offered as
a mix of studios, one-bedroom
and two-bedroom units. In-unit
amenities include central air
conditioning, fireplaces, walk-
in closets, cable TV hookups,
garbage disposals and frost-free
refrigerators. Brushed nickel fix-
tures, ceiling fans, skylights and
vaulted ceilings adorn select
units. Robust community offer-
ings include a barbecue and
picnic area, business center, car-
ports, two clubhouses, commu-
nity kitchen, dog park, fitness
center, two heated swimming
pools, sauna, laundry rooms,
playground, soccer field, splash
park and walking path.
Denver-based BMC will man-
age the community.
Pembrooke on the Green
marks the fourth project in part-
nership with Oak Coast Proper-
ties and brings BLDG’s Denver
multifamily management port-
folio to approximately 5,000
units.
“Pembrooke on the Green
is one of the largest multifam-
ily assets in the Denver metro
area,” said Max Bresner, chief
operating officer for BMC
Investments, an affiliate of
BLDG Management.
“I am thrilled to run point on
executing Oak Coast Proper-
ties’ vision for this property in
collaboration with the talented
team of professionals at BLDG,”
he said.
s
Pembrooke
Continued from Page 1multifamily market and close
proximity to major drivers of
employment, entertainment
and education, as well as both
an existing light-rail line and
one of the newest lines open-
ing soon, will be appealing to
renters and create an increase
in demand,” Hybl said.
Rachel Butler, district manag-
er, will manage the community,
while Nicole Harris, property
manager, will lead day-to-day
operations.
Brady O’Donnell of CBRE
arranged the FMAC mortgage
for the acquisition.
Other News
n
Slipstream Properties
paid
$25.75 million to
Avenue North
LLC
for the 175-unit Brix on Bel-
leview apartment community
at 5051 S. Acoma St. in Engle-
wood. The sale price equates to
$174,029 per unit for the com-
munity that was constructed in
1962 and 1971.
The transaction was handled
by the CBRE team of
David
Potarf, Dan Woodward, Matt
Barnett
and
Jake Young.
n
An unidentified buyer paid
$4.86 million, or $189,923 per
unit and $189.96 per square
foot, for the 26-unit Lowry Flats
apartment community at 1120
Willow St. in Denver.
Lowry Flats was constructed
in 2003.
Josh Newell
of
Pinnacle Real
Estate Advisors
represented
both the local buyer and seller
in the transaction.
n
RedPeak Properties
paid
$8.6 million, or $215,000 per
unit and $258.26 per sf, for the
40-unit Captain Cook Apart-
ments in Denver.
Captain Cook, built in 1969,
was designed by the late Roland
Wilson, who had designed
about 130 apartment buildings
in Denver. Wilson died in 2009
at age 83.
“Captain Cook offered a rare
opportunity to acquire a highly
sought-after legacy asset in Con-
gress Park,” said
Justin Hunt
of
ARA Newmark,
who handled
the transaction. “Being a Roland
Wilson-developed building, this
property checks all of the boxes
for prospective investors:
• A midrise with spacious
floor plans, solid concrete con-
struction, oversized balconies;
• Underground parking; and
• An unmatched amenity
package. “Captain Cook is a
very well maintained building
and a perfect value-add play,”
according to Hunt.
n
A Golden-based seller sold
a 10-unit apartment building
in Denver for $1.01 million, or
$101,000 per unit.
The property, built in 1956, is
located at 1732 W. Mosier Place.
The building is about a mile
from the Broadway Station
redevelopment site.
It features large one- and two-
bedroom units with off-street
parking and a new roof.
Records show the seller paid
$445,000 for the building in 2011.
The transaction was handled
by
Jim Knowlton, Robert Law-
son
and
Chris Knowlton
of
Pin-
nacle Real Estate Advisors LLC.
The buyer was in a 1031
exchange.
“He plans to upgrade the
property over time and increase
the currently low rents to mar-
ket rates,” according to Chris
Knowlton.
s
Glenbrook
Continued from Page 6Cos., which is partnering with
Greenius LLC to develop the
row houses at 30th and Bluff
streets.
Units will average 2,400
square feet, compared with
Boulder’s average apartment
size of approximately 800 sf.
There also will be four corner
commercial spaces along 30th
Street for a coffee shop, bagel
shop or other retail uses.
With much of Boulder’s hous-
ing stock consisting of older
product, or new, smaller apart-
ment units or condominiums,
“There are not a lot of really
new family homes,” said Cast-
er. “This is designed for fami-
lies,” he said, explaining par-
ents can drive up, enter their
homes from their garage and
play with the kids in the “back-
yard” – a central gathering spot
with a courtyard, paseo, green
space and mini soccer field.
Boulder Junction Rowhomes
recently received city approv-
al. Sagebrush expects to have
building permits by the end of
the year and start construction
early next year. Units will be
delivered in early 2018.
Except for two-story resi-
dences above the retail, all the
units will be three stories. Rents
are expected to average around
$5,000 per month.
Jeff
Dawkins
Architect
designed the brownstone-style
community, which will consist
of four net-zero-energy build-
ings situated on approximately
1.9 acres. The buildings will
have solar panels, quick-recov-
ery hot water heaters and other
energy-efficiency features. The
construction-only cost is esti-
mated at about $15 million.
Residents will have access to
the city’s transit hub at Boul-
der Junction, and proximity to
Whole Foods, the Twenty Ninth
Street shopping area and other
amenities.
Sagebrush Cos. focuses
mostly on infill multifamily
developments in Denver and
Boulder. Caster said the com-
pany loves the Boulder market
and hopes to develop addi-
tional projects in the city. It is
in the early planning stages
for a 50-room, three-story bou-
tique hotel immediately south
of the rowhomes that would
be part of its Carmen Hotel
brand. It also is planning Boul-
der Industry & Arts Center in
east Boulder.
s
Boulder
Continued from Page 12Boulder Junction Rowhomes, designed by Jeff Dawkins Architect, is being targeted to families.