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 two apartment communities totaling 1,114 units, which included the 688-unit Landings at Buckley, in Aurora, Colorado and the 426-unit Lakes at Monaco Pointe, in Denver, Colorado. ARA Denver-based principals, Terrance Hunt, Shane Ozment, Doug Andrews and Jeff Hawks, represented the seller, Jackson Square Properties, a California-based apartment investment group and one of the most active multifamily investors in the state. A Denver-based real estate investor, Coughlin and Company, purchased Lakes at Monaco Pointe for $28,000,000, which represents a price per unit of $65,728, and a price per square foot of $91.88. The Landings at Buckley was purchased by a private investor at an undisclosed price.
Jackson Square Properties first entered the Denver market in 2010 with the acquisition of the aforementioned communities, which at the time were part of a lender-owned portfolio which also included, the 284-unit, Lodge at Aspen Grove. ARA Colorado originally listed the portfolio for sale and at the time it was the largest portfolio to sell in Colorado since the market’s downturn and one of the few portfolios to be foreclosed on, according to Jeff Hawks.
Doug Andrews was quoted in 2010 as saying, “Being just north of the Southeast Business Corridor and close to a light rail station really appeals to apartment renters.” Adding, “The rents in the Denver Technological Center (DTC) and along the light rail are rising and will continue to rise into the foreseeable future.”
While this may have been seen as a bold statement during the turbulent economic times of 2010, Doug couldn’t have been more correct. Jackson Square Properties purchased Lakes at Monaco Pointe for $17,000,000, or $39,906 per unit, and resold the property two years later for a 40% gain after they spent approximately $3 million in improvements. Terrance Hunt added, “Many buyers of 1970s and 1980s product like this age of asset because it provides a more affordable choice to renters while delivering above market returns to investors."
Coughlin and Company, a local veteran to the Denver real estate market, is planning on taking advantage of ongoing value-add incentives and Lakes at Monaco Pointe’s location and will invest an additional $3 million in capital to maximize the property’s value. Jeff Hawks explained, "Coughlin and Company owns and understands how this asset fits into the apartment sector. It is the opinion of most apartment buyers that this kind of property, in this location, will outperform most submarkets for percentage rent growth.”
The properties were 95% occupied at the time of closing.
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, Terrance Hunt at hunt@ARAusa.com, Shane Ozment at ozment@ARAusa.com, Jeff Hawks at hawks@ARAusa.com, or Doug Andrews at andrews@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