Colorado Real Estate Journal - October 21, 2015
Florida-based Advenir recently paid $52 million for the 351-unit Del Arte Lofts & Flats in Aurora. Advenir renamed the community as Advenir at Del Arte. Advenir has acquired about 3,100 apartment units in the Denver area since 2011. Advenir at Del Arte is an 11.42-acre, 17-building apartment community at 151 S. Joliet Circle. It was built in 1986 but all of the units had recently been renovated by the sellers, Wood Partners and E2M Partners. It was 93 percent occupied at the time of the sale. "The greater Denver region is one of the country’s top-performing apartment markets," said Todd Linden, chief acquisition officer of Advenir. "Advenir at Del Arte is a strategic acquisition for us as it offers quality residences, on-site amenities and easy access to retail, dining and job centers,” Linden said. “It is also located in the heart of the region’s fastest-growing employment center,” he said. Advenir at Del Arte is close to the Denver Tech Center, the Fitzsimons medical center redevelopment, Buckley Air Force Base and Denver International Airport. Combined, these four employment hubs represent 486,000 jobs. The community also is less than 10 minutes from the future Aurora City Center Station on the new Interstate 225 light-rail line, which is scheduled to open in 2016. The I-225 Line will provide a key linkage between the Southeast rail line, which serves the Denver Tech Center, and the East Rail Line, which also is scheduled to open in 2016 and will connect downtown Denver directly to Denver International Airport. “Del Arte is a great example of a successful repositioning of an asset that has a strong location with great drive-by access to jobs and proximity to retail and services but that was not meeting its potential,” said Jane Maushardt, Wood Partners’ senior vice president of acquisitions. “Through a thoughtful renovation of the 1980s-era unit interiors and common areas, we were able to appeal to Denver city-dwellers looking for quality apartments and amenities at a more reasonable price in an ideal location,” she said. Wood Partners paid $33 million for the community in May 2013. Over the next two years, Wood Partners fully renovated the leasing office, clubhouse and the fit-ness center, in addition to the units. Wood Partners was represented by the ARA Newmark team of Shane Ozment, Jeff Hawks, Doug Andrews and Terrance Hunt. “There was a lot of interest in it from buyers,” Hunt said. “Advenir has been pretty active in Denver and thought it was a good fit for its portfolio,” he said. Other News A limited liability company paid $8.7 million for the 100-unit, nine-building Fairview Apartments at 15494 E. Mississippi Ave. in Aurora. The buyer was secured and represented by Greg Price, a vice president in the Denver office of Marcus & Millichap. Price also is the director of the company’s National Housing Group “The buyer saw an opportunity to acquire an asset very close to a future light-rail station, within the rapidly improving Aurora rental market, which has seen the largest percent gains in rent over the past 12 months in the Denver metro area,” Price said. “Further, the unit mix of the property is very attractive and rare in the market for 1970s-era product, which includes 20 three-bedroom units and 10 four-bedroom units. The older apartment stock in the Aurora market is mostly made up of one- and two-bedroom units,” according to Price. A privately held real estate investment and advisory firm based in San Francisco and Chicago, 29th Street Capital, recently purchased the 58-unit Village West apartment community in Arvada. The price was not disclosed, but records show it sold for $7.95 million, or $137,069 per unit and $132.04 per square foot. The property was built in 1972 on the 2.36-acre site at 12155 W. 58th Ave. The seller was Cooper Properties, a California-based company winding down its holdings in the Denver area. The buyer acquired it in an off-market deal, avoiding the competitive bidding that is common in the Denver area for multifamily properties, according to 29th Street Capital. The buyer plans to invest approximately $1.1 million, or $19,000 per unit, to improve Village West’s exterior, interiors and amenities, bringing the property in line with comparable apartment communities in the area. As part of the improvement, units will receive new appliances, countertops, fixtures, lighting and flooring. They also will receive new energy-saving doors and windows. The pool and patio area also will be improved, and a new dog park will be added. Repairs are planned for roofs and balconies. Corridors will get new carpet, paint and hardware. Exterior work is expected to be finished in nine months. The work on the interiors will be ongoing, as leases expire and apartments become available. “Village West is our second recent acquisition in the Denver metro, with others on the horizon as we continue to build our presence in Colorado,” said Todd Jaycox, a senior vice president of acquisitions for 29th Street Capital. “Our goal is to dramatically improve the property’s physical condition and offer an updated, yet affordable, rental option in a highly desirable suburban location. Village West will benefit greatly from strategic improvements designed to modernize the community and increase its appeal,” Jaycox said. Village West is near Interstate 70 and the new light-rail station scheduled to open next year. An unidentified buyer paid $2.54 million, or $105,625 per unit and $112.71 per sf, for a 24-unit apartment building at 6465 W. 38th Ave. in Wheat Ridge. “My client was in a 1031 exchange and owns another multifamily property just two blocks away, so this is a great fit for her portfolio,” said Jim Knowlton, a senior adviser at Pinnacle Real Estate Advisors, who represented the buyer in the transaction. “The buyer plans to renovate all of the units and hold on to the property long term,” he said. An unidentified buyer paid $810,000 for a 12,700-sf, mixed-use building at 204, 234 and 244 Bridge St. in Brighton. The building, constructed in 1910, has five apartment units and five retail spaces. “The buyer is planning an extensive renovation of the property, which includes adding four studio units and giving the exterior a face-lift,” said Jim Knowlton, a senior adviser at Pinnacle Real Estate Advisors. Knowlton represented the buyer in the transaction. An unidentified buyer paid $555,000, or $79,286 per unit, for a seven-unit apartment building at 1852-1864 W. Mississippi Ave. in Denver. Matt Lewallan and Kevin Calame, both senior advisers at Pinnacle Real Estate Advisors LLC, represented the buyer in the transaction. “The buyer is going to be using this property to house employees for his company,” Calame said.