Oak Coast Properties and BMC Investments Acquires The Artisan Townhomes and Apartments in Denver

Oak Coast Properties and BMC Investments Acquires The Artisan Townhomes and Apartments in Denver

DENVER, CO - Oak Coast Properties and BMC Investments announced the $50.8 million acquisition of The Artisan Townhomes and Apartments in Denver, Colorado. Oak Coast Properties will employ a value-add investment strategy to the multifamily community asset via the completion of a robust $2.5 million property renovation and repositioning effort aimed at improving interiors, exteriors and amenities.

Oak Coast Properties has also announced its plans to invest $300 million in the multifamily sector in 2016, with The Artisan acquisition the first in a series of investments made to meet that goal.

“This acquisition marks an important milestone as it signifies more than $500 million invested in multifamily and hotel real estate assets in three years,” said Phillip Nahas, Oak Coast Properties’ Managing Partner. “The Artisan also grows our Denver apartments portfolio to over 1,500 units and provides an opportunity for significant upside potential through a renovation plan that capitalizes on rising rental rates, unit demand and lack of new supply in this in-demand region.”

The Artisan encompasses 434 units offered in a mix of one-, two-, and three-bedroom floorplans. Apartments are situated within two- and three-story buildings and units feature walk-in closets, private patios/balconies, dishwashers, microwaves, air conditioning, gas ranges and vaulted ceilings. Community amenities include a fitness center, business center, two clubhouses, covered parking, two heated swimming pools, courtyard, onsite laundry facilities and a sport court.

The Artisan is strategically located within the Southeast Submarket of Denver, just one mile north of the Dayton Station with access to the I-225 Light Rail Line. The community is within walking distance to Hampden Avenue, one of Denver’s premier retail corridors, and is located two miles north of the Denver Tech Center and Southeast Business Corridor, the largest employment center in the Rocky Mountain region.

The Southeast Submarket is among the strongest in metro Denver with average annual rent growth exceeding 10 percent since 2012. Despite this growth, lack of new supply exists with just two new properties situated within a three-mile radius. Additional competing nearby properties have implemented renovation programs and subsequently driven rents higher, showcasing the rental rate increases that may be achieved through renovation and repositioning.

“This renovation plan will allow us to bring rents to a higher market rate and drive return on investment while improving the quality of the rental experience at the Artisan,” added Nahas.

Originally built in 1973, The Artisan has received nearly $3.2 million in capital improvements since 2013. The planned renovation will augment these recent efforts with upgrades to the clubhouses, air conditioning, pools, landscaping, carports, and exterior paint and siding.

“The Artisan is our second transaction made in conjunction with Oak Coast Properties,” said Matthew Joblon, Chief Executive Officer for BMC Investments. “Our strategic partnership continues to grow as our investment objectives remain aligned and we achieve continued success with our assets. We will continue to pursue similar deals and opportunities within this market, which we believe to be ripe with opportunities.” Oak Coast Properties and BMC Investments recently purchased the Liberty Creek Apartments in Aurora, Colorado in a $65 million transaction.

BLDG Management, the property management company affiliated with BMC Investments, will manage The Artisan.

Brock Yaffe and Charles Halladay of HFF’s debt placement team assisted in securing a $41.89 million loan for the buyer through Freddie Mac’s CME Program. The securitized loan will be serviced by HFF through its Freddie Mac Program Plus® Seller/Servicer Program. Jordan Robbins and Jeff Haag of HFF’s investment sales team represented the seller, Peak Capital Partners, in the sale.

“We exceeded our 2015 multifamily and hotel investment goals considerably and remain bullish about our ability to reach our intended 2016 target of $300 million in investment in these two sectors,” said Nahas.

Source: Oak Coast Properties / #Apartments #Multifamily

More Stories

Get The Newsletter

Get The Newsletter

The latest multifamily industry news delivered to your inbox.