DURANGO, 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 Hillcrest Apartments, a 112-unit apartment community located in Durango, Colorado. ARA Colorado’s Shane Ozment, Terrance Hunt and Andy Hellman represented the seller, Butte Companies, an Arizona-based real estate developer, in the transaction.
Virtú Investments, a Marin County, California-based, national real estate investment company, purchased Hillcrest Apartments for $14,500,000, representing a price per unit of $129,464, or $156.59 per square foot. The property was 92% occupied at the time of closing.
Shane Ozment explained, "There was significant interest in Hillcrest due to it being the newest property in the market and over 100 units. It is virtually impossible to build in the city of Durango, especially a community of this size due to construction costs and the shortage of buildable ground."
Adding, “The buyer went under contract as a loan assumption, but decided to pay the yield maintenance at closing and put new long-term debt on the property. That being said, the property’s sale price is a million dollars lower than it would have been had the seller had to pay for the yield maintenance.”
Constructed in 2002, Hillcrest Apartments is the newest community in Durango and one of the only apartment communities located in the area. Due to the lack of rental product, the Durango apartment market has long been one of the most stable areas in the state. The property is within minutes of Durango’s largest employers as well as just steps away from the Fort Lewis College campus positioning the property as a great option for both students and professionals in town. Residents of Hillcrest Apartments enjoy access to the adjacent Hillcrest Golf Club as well as the convenience of having historic Downtown Durango within a few minutes of the property, offering shopping, dining, and entertainment options year round. Durango Mountain Ski Resort and Trimble Hot Springs are also just a short drive or ride from the community.
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 404.990.4900, or Amy Morris at amorris@arausa.com or 404.990.4902; locally, Shane Ozment at ozment@arausa.com, Terrance Hunt at hunt@arausa.com, or Andy Hellman at hellman@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 an annual production volume of more than $10.2 billion in real estate transactions in 2013. For detailed information on ARA’s extensive multihousing investment services, visit www.arausa.com.