DENVER, CO - Atlanta-headquartered ARA, the largest privately held, full-service investment advisory brokerage firm in the nation focusing exclusively on the multihousing industry, recently brokered the sale of a four-property, 1,164-unit multifamily portfolio spread across metro Denver and Colorado Springs, CO. The buyer , a Texas-based investment group, purchased the portfolio. ARA Colorado-based Principals, Terrance Hunt, Shane Ozment, Jeff Hawks, and Doug Andrews, along with Senior Vice President, Ken Greene and Senior Associate, Kevin McKenna, represented the seller, Connecticut-based, Five Mile Capital in the transaction.
Terrance Hunt explained “Although this portfolio spanned from Colorado Springs to Aurora, there was more interest for the entire portfolio than individual properties. This shows there is strong buyer appetite for scale in this market.” Kevin McKenna added, “It’s rare to find a portfolio of over 1,100 units in three different cities along the Front Range. As a consequence, the buyer pool proved to be very deep for this type of offering. There’s ample opportunity to add value to all of these assets by improving the common area amenities and continuing the renovation of the unit interiors.”
The Colorado Value-add Portfolio consisted of four properties located in Aurora, Castle Rock, and Colorado Springs, Colorado.
“The Colorado Value-add Portfolio is the largest multifamily transaction sold to a single investor in Colorado since 2006. The current interest rate environment created a significant cash-on-cash yield for the investor day one of ownership. Archon plans to renovate the units to take advantage of the market,” said Ozment. “This was a great opportunity for the buyer to purchase a large portfolio and take advantage of multiple locations.”
Built in two phases, completing construction in 1988 and 1996, Waterfield Court is a 482-unit community located in Aurora, Colorado. The property enjoys a great infill location in the southeast Denver metro area, with convenient access to major employment centers including the DTC Business Corridor, Buckley Air Force Base, the Fitzsimons Redevelopment and Denver International Airport. Currently, just 57% of the apartment homes have been renovated creating the opportunity to complete a successful value-add strategy.
Rolling Hills is conveniently located between Denver and Colorado Springs in Castle Rock, Colorado. Constructed in 1987, the property offers 186 one and two-bedroom units in twelve buildings. The property is situated on over 18 picturesque, country acres and boasts easy access to Denver’s largest employment area, the DTC Business Corridor.
Whispering Hills and Stone Ridge, both located in Colorado Springs also offer significant upside through a proven renovation strategy. Whispering Hills, consists of 216 apartment homes located in the northwest submarket of Colorado Springs, offering residents an excellent location just minutes from the Garden of the Gods high-tech and industrial employment corridor, as well as one of the best school districts in Colorado.
McKenna explained, “This property, like the others, has only seen a portion of its units renovated, leaving the new owner with significant upside through continuing the current value-add renovation strategy.”
Stone Ridge, comprised of 280 apartment homes, is located closer to downtown Colorado Springs on the southwest side. The property’s convenient access to Peterson Air Force Base, Fort Carson and downtown Colorado Springs has allowed for tremendous rent growth due to ongoing renovations and troops returning from Afghanistan and Iraq.
To schedule an interview with an ARA executive regarding this transaction or for more information about ARA, please contact Lisa Robinson at lrobinson@ARAusa.com or 678.553.9360, or Amy Morris at amorris@arausa.com or 678.553.9366; locally, Jeff Hawks at hawks@ARAusa.com, Doug Andrews at andrews@ARAusa.com, Terrance Hunt at hunt@ARAusa.com, Shane Ozment at ozment@ARAusa.com, Ken Greene at greene@ARAusa.com or Kevin McKenna at kmckenna@ARAusa.com or 303.260.4400.
About ARA
Atlanta-headquartered ARA is the largest privately held, full-service investment advisory firm in the nation that focuses exclusively on the brokerage, financing and capital sourcing of multihousing properties including conventional, affordable, distressed assets, notes sales, seniors, student & manufactured housing and multihousing land. ARA is comprised of the country’s top investment professionals who leverage a unique and fully integrated cooperative business platform of shared information, relationships and technology driven solutions. ARA’s unified enterprise approach ensures that clients are delivered the broadest asset exposure, effective matching of buyers and sellers, and the shortest transaction timeframes in the industry. The combination of resources, unparalleled market expertise and nationwide presence in the multihousing marketplace has resulted in average annual production volume of $5.4 billion in real estate transactions since 2004. For detailed information on ARA’s extensive multihousing investment services, visit www.ARAusa.com