Colorado Real Estate Journal - October 3, 2018
IMT is growing in Colorado. IMT Residential, a nationwide apartment operator, with affiliate IMT Capital LLC, a private real estate firm, boosted its Colorado portfolio with the acquisition of the 507-unit Coyote Ranch community, renamed IMT Cornerstar Ranch, in Aurora. According to public records, the property at 16363 E. Fremont Ave., near the intersection of Parker and Arapahoe roads, was sold for $125 million by Simpson Housing LP. “The Denver submarket has proven to be a great location for us and IMT Residential is delighted to broaden our reach with the addition of IMT Cornerstar Ranch in Aurora, Colorado. We look forward to our continual growth in this region while maintaining the high level of customer service we provide to all our residents,” Joseph Elhabr, vice president, IMT Residential, said in a release regarding the transaction. “There was a lot of interest in the asset,” added Holliday Fenoglio Fowler’s Jordan Robbins, who listed the property with HFF’s Anna Stevens and Jeff Haag of Carmel Partners, formerly of HFF. Both investors new to the Colorado market and those already with holdings here were attracted to the community, constructed in 2002, which offered upside, a great location and amenities, and is within the Cherry Creek School District, he added. IMT Cornerstone Ranch features a mix of one-, two- and three-bedroom apartments that average more than 1,000 square feet. Apartments include fully equipped gourmet kitchens, garden tubs, in-home washers and dryers and walk-in closets. The community includes a sand volleyball court, a resort style swimming pool with a lounge, a sundeck, theater room, half-court basketball court and a dog park with an agility course. Additionally, IMT Cornerstar Ranch is located in close proximity to the Cornerstone shopping center and its retail, restaurant and entertainment options, and has direct entry to the Cherry Creek Valley Ecological Park. At the time of sale, the community was 95 percent occupied. In addition to the Cornerstone Ranch property, IMT also owns IMT Alameda Station, IMT at Ridgegate, IMT at City Park and IMT Cherry Creek. Other News Three By Four Horses Inc. recently sold a downtown Denver apartment portfolio as well as a Denver apartment community in deals totaling $17.5 million. Both of the properties were sold off-market and at 100 percent of asking price. The three-building, 94-unit portfolio sold for $11.2 million, or $119,149 per unit. The portfolio comprises 1915 Sherman St., 35 units; 1651 Washington St., 36 units; and 1671 Washington St., 23 units. The portfolio had an occupancy of around 95 percent at the time of sale. It would have been 100 percent, however, the buyer requested that no further leases be signed as the buyer plans to fix up the buildings and increase rents, noted Andrew Carpinelli of AFC Realty & Management Inc. He represented the seller in both transactions. Joe Hornstein and Scott Fetter of Pinnacle Real Estate Group’s Hornstein Fetter Apartment Group and Kevin Calame and Matt Lewallen of the firm’s Calame Lewallen Team represented the unnamed buyer in the transaction. The Cherry Tree Apartments at 1969, 1975 and 1995 S. Decatur St. sold for $6.3 million. The 49-unit community, just east of Federal Boulevard, was built in 1981. At the time of sale, Cherry Tree was 100 percent occupied and features units individually metered for electric and half of the units individually metered for both electric and gas. The property also has deferred maintenance, including needed new parking lot and exterior stair repairs. “We discovered this property off-market and knew it was a good fit for an investor with experience repositioning buildings,” Hornstein said. “The current financials didn’t look very good and it was difficult to finance, which would deter many investors, but the buyers realized there was a significant opportunity to add value and were able to use 1031 funds to complete the purchase.” Hornstein and Fetter represented the buyer. A 17-unit Denver apartment property recently traded hands for $3.1 million. The Athens at 2441 S. York St. sold to a private investor represented by Jason Hornik and Greg Price of Marcus & Millichap. “With the property having recent, mild unit upgrades in place, the buyer should be able to raise rents with more extensive upgrades, based on market rents in the University of Denver submarket,” stated Hornik. “With average rents being just over $1,000, we believe the buyer should be able to push NOI by $2,000 per month by year’s end.” Built in 1967, the property consists of all one-bedroom units with exterior walk-up entrances and features 10 off-street parking spaces. The Housing Authority of the city of Aurora has begun construction on Peoria Crossing, an 82-unit affordable housing development near Fitzsimons and University of Colorado Anschutz Medical campus. The project provides integrated housing serving households that earn between 30 and 60 percent of the area median income. Located within the Morris Heights neighborhood at Peoria Street and East 30th Avenue, Peoria Crossing is a transit-oriented development located a half-mile from the A and R rail lines, multiple bus routes, employment sectors, neighborhood schools and Sand Creek Park. Anticipating growth, the vacant lot was purchased 10 years ago with hopes to further expand AHA’s affordable housing portfolio. “We know there is a huge demand for affordable rental units and we are excited to get this project underway,” said Craig Maraschky, executive director of AHA. Upon completion and lease-up of the first phase, construction on the second phase will follow once funding is secured. The first phase is set for completion in August. Features at the development include interior bicycle storage, a community garden, public art, an active playground and a fitness center. The $24 million development is a public-private partnership funded with federal and state low-income housing tax credits, city of Aurora Home Funds and state of Colorado Housing Solutions Program funds. The Albion Apartments in Brighton recently sold for $3.17 million. The 26-unit community at 78 W. Walnut St., along Highway 85, was purchased by Bruce Equity Investment Partners III LLC. JAR Investments LLC sold the property, which comprises two-bedroom units. Exterior improvements on the building include new paint, windows and stairs. In addition, the property offers 39 off-street parking spots. Jason Koch of Nexus Commercial Realty LLC represented the seller. Adam Riddle, also of the firm, represented the buyer. The buyer plans to continue to run the apartments with moderate interior upgrades and was attracted to the higher-than-average cap rate of the asset. The seller plans on exchanging into a larger asset and releveraging its equity.