Colorado Real Estate Journal - July 5, 2017
A New York-based buyer boosted its Denver metro holdings with its acquisition of an Englewood apartment property. Phoenix Realty Group, a national multifamily real estate fund manager, investor, operator and developer, paid $57.8 million for the Silver Cliff Apartments. The 312-unit community is the latest addition to PRG’s Colorado portfolio, which, with the acquisition of Silver Cliff, now tops more than 1,300 units. “We are excited to expand PRG’s presence in the Denver metropolitan region and implement our capital improvement plans for the property,” Keith Rosenthal, president of PRG, said in a release. “We believe there is a significant opportunity to improve the property value, attract new tenants looking for state-of-the-art amenities and contemporary apartment units and execute on operating improvements and energy efficiency programs to create expense savings.” “Buyers really liked the value-add opportunity and the location of the property,” added Jordan Robbins of Holliday Fenoglio Fowler, noting there was a significant amount of competition for the asset. “There is not a ton of new construction in the area, so I think the perception from potential buyers was the ability to put some money into the property and really push rents.” Robbins, along with HFF’s Jeff Haag and Anna Stevens, represented Weidner Apartment Homes in the sale. While the sale represents the disposition of Weidner’s last Denver area holding, it still has a significant presence in the Colorado Springs apartment market. PRG will make improvements to the units as well as overall community improvements, such as upgrading the leasing center, modernizing the clubhouse and providing state-of-the-art fitness and cyber centers. In addition to its value-add plans for the property, PRG also is expected to rename the community Alvista Trailside. Located at 5275 S. Delaware St., Alvista Trailside has direct access to the Big Dry Creek Trail. Additionally, the community off Belleview Avenue is bounded by Greenwood Village and Littleton, near numerous parks and light rail. Built in 1990, the garden style community comprises one- and two-bedroom units, which were around 97 percent occupied at the time of sale. Common amenities include a pool and sundeck, fitness center, playground and dog run. Apartments include private patios/balconies, fireplaces and, in some units, vaulted ceilings. “For these types of deals, there is just a lot of capital for these types of value add opportunities,” added Robbins.