CASTLE ROCK, CO - Security Properties and ReCap, a Reinsurance Group of America (RGA) company, purchased The Bluffs at Castle Rock, a 220-unit, Class B+ multifamily property located in Castle Rock, CO for $50,000,000. This was Security Properties' 6th joint venture with RGA.
Castle Rock, located 30 miles south of Denver, is distinctive in that it represents the median between Denver and Colorado Springs, the two biggest population centers in Colorado. Castle Rock is most notably recognized for its concentration of families, rolling meadows, and quiet feel, despite its proximity to an otherwise booming market.
The units feature a mix of 1-bedroom, 2-bedroom & 3-bedroom floorplans, and include spacious walk-in closets, private patios/balconies, & fireplaces (select units). Once the interior renovation program is complete, all units will feature stainless steel appliances, wood vinyl plank flooring, resurfaced counters, new cabinet doors and new fixtures throughout. Additionally, the property offers a comprehensive amenity package including a swimming pool, a clubhouse containing a fitness room and a business center, and a dog park.
The asset represents a value-add investment with moderate interior and exterior renovation characteristics. SP will continue renovating units to the spec level initiated by prior ownership, while also adding minor aesthetic upgrades. In addition to unit interiors, the asset will receive improvements to the leasing center/clubhouse and pool deck amenity area.
SP closed on The Lodge on 84th in Federal Heights in December 2017, and owns affordable housing properties throughout metro Denver. The Denver MSA and is a thriving market, with the lowest unemployment rate in the country, a diverse mix of industries and employers, and a rapidly expanding population in its second ring.
Tad Johnson, Investment Manager at Security Properties says, "Castle Rock is an attractive submarket with long term growth potential due to its proximity to Denver's Tech Center and RidgeGate, and The Bluffs at Castle Rock is a quality asset that we are excited to own."
The property will be managed by Security Properties-affiliate Security Properties Residential.