Colorado Real Estate Journal - November 1, 2017
The only newly built apartment community in the Ken Caryl submarket sold to a joint venture for $64 million. Greensboro, North Carolina based Bell Partners Inc., a leading apartment investment and management company, and Hansainvest, a major German investment management company, acquired the Escape at Ken Caryl, a 250-unit property in Littleton. The transaction is the second asset acquired pursuant to the previously announced partnership agreement between Bell and Hansainvest’s Hansa US Residential Fund. The fund is focused on providing institutional investors with opportunities to invest in core residential properties in the U.S. Renamed Bell Ken-Caryl, the 15-building community features one-, two- and three-bedroom floor plans. Completed in 2015, the units average 970 square feet and feature high-end finishes, such as granite countertops, tile backsplashes, walk-in closets, woodstyle flooring, pendant lighting, built-in computer desks as well as GE Energy Star appliances and full-size washers and dryers in select units. Bell Ken-Caryl community amenities include a clubhouse with resident lounge, billiards rooms, catering kitchen, resort-style pool with tanning ledge, an outdoor fireplace, bike workshop, grills and shuffleboard. Located at 12044 W. Ken Caryl Circle, the property is located within close proximity to multiple major employment centers, notable retail concentrations and the Rocky Mountains. Residents of the property also have access to Ken Caryl Ranch, which consists of 3,800 acres of open spaces and more than 25 miles of trails, and the Ranch House, which includes tennis courts, an outdoor 25-meter swimming pool, soccer fields, a disc golf course, a sand volleyball court and equestrian center. Additionally, Ken Caryl Ranch and the surrounding area have an annual household income of nearly $128,000 within a 1-mile radius of the property and 60 percent of the population holds a college or advanced degree. “We are very pleased to make our second strategic investment with Hansainvest Real Assets. This asset, Bell Ken-Caryl, is well situated in a very desirable, high-barrier-to-entry submarket with excellent demographics and strong market fundamentals which will promote long-term stability and growth going forward,” said Joseph Cannon, senior vice president of Bell Partners Inc. With the purchase of Bell KenCaryl, Bell Partners will have completed $560 million in multifamily acquisitions in 2017. Its portfolio includes more than 60,000 units across the United States, including a Denver-based portfolio exceeding $650 million. Terrance Hunt, Shane Ozment, Jeff Hawks, Doug Andrews and Chris Cowan of ARA Newmark represented Boston-headquartered TA Realty in the sale. “Escape at Ken Caryl is the only newly built apartment community within Ken Caryl Ranch,” said Hunt. “Lockheed Martin recently announced plans for a $350 million-dollar satellite production facility, which will create 1,500 contractor jobs over the course of the three-year construction phase and will help to accommodate its 350 current job openings – all within minutes of the community.” Other News • An unnamed buyer paid $15 million, or $150,000 per unit, for a Denver apartment property. The 100-unit property at 3430-2441 S. Akron St. is situated on a 5-acre site with East Hampden Avenue frontage. It comprises one- and two-bedroom apartments as well as two- and three-bedroom townhomes. It has on-site management, a pool, clubhouse and gym. JB Hochman and Justin Brockman of the Hochman|Brockman Team at Pinnacle Real Estate Advisors LLC represented the seller in the transaction. Robert Lawson of the firm’s Knowlton|Lawson team represented the buyer. • A Colorado-based private capital client purchased a Capitol Hill apartment community for $12.85 million. The Dwell Apartments, a 53-unit community at 600-624 N. Pennsylvania St. in Denver, was purchased for $242,453 per unit. “Dwell is an incredible asset. It is one of only a handful of fully amenitized properties in the Capitol Hill submarket,” said Nick Steele of Marcus & Millichap’s Denver office. “Located a block and a half from Trader Joe’s and with a Walk Score of 91, the location is irreplaceable.” Steele and Jacob Steele of Marcus & Millichap represented the buyer. The seller also was a Colorado-based private capital client. The unit mix includes studios, one- and two-bedroom apartments that range from 505 square feet to 829 sf. Community amenities include a swimming pool, gym and off-street parking. • Denver-based multifamily investment and management firm Griffis Residential announced the final closing of its fourth private equity real estate investment fund, Griffis Premium Apartment Fund IV, with $407 million in capital for investment in high-quality apartments. To date, Fund IV has acquired four apartment communities comprising 1,475 units in the Austin, Texas; Seattle; Denver; and Los Angeles metro areas. Fund IV is targeting approximately $1 billion in multifamily apartment investments primarily in Colorado, Texas, Washington, Oregon and California. Fund IV will pursue the same investment strategy as its predecessor funds, acquiring high- quality apartment communities and creating value through operational and capital improvements. Target assets are typically of recent vintage, contain 200-plus units and have a total project cost ranging from $50 million to $150 million-plus. Acquisitions in Fund IV are focused on markets benefiting from above-average wage growth and demographics that favor the apartment industry. “We are highly selective with regard to the transactions we pursue and are pleased with a robust apartment pipeline that continues to provide opportunities to generate a healthy near-term yield with additional upside through the Griffis Residential value-add formula,” said David Birnbaum, co-CEO at Griffis Residential. Shelter Rock Capital Advisors, headquartered in New York, acted as the exclusive capital adviser to Griffis Premium Apartment Fund IV. • Dominium, a Minneapolis based apartment owner, developer and manager, closed on the land to build North Range Crossings, a 216-unit affordable housing development in Commerce City. Dominium is beginning construction on the property which, when finished, will feature a clubhouse with a fireplace and wood-beam ceilings with architecturally stimulating trusses. It will also include a fitness center, yoga area, community commercial kitchen, management office and business center. One-, two- and three-bedroom units feature 9-foot ceilings, stainless steel appliances, efficient kitchen and bath plumbing fixtures, walk-in closets, coat and linen closets, and in-unit washers and dryers. Exterior amenities include covered parking, a swimming pool and spa, two playgrounds, fire pits, grill stations and a bicycle maintenance facility. “This area has seen extreme growth in the past few years and it is expected to continue,” said Shaun Reinhardt, development associate at Dominium. “North Range Crossings is in a prime location and will enable us to provide much needed affordable housing to this growing community for years to come.” This is Dominium’s first new construction project in the Denver area. The company closed on the property in late August and expects the project to be completed in January 2019.