LOVELAND, 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 The Buttes Apartments in Loveland, CO. ARA Denver-based principals, Doug Andrews, Jeff Hawks and Terrance Hunt and senior vice president, Shane Ozment represented the seller, Griffis/Blessing, Inc., a Colorado Springs-based real estate investment firm and property management company, in the transaction.
An undisclosed local investment group purchased the property for $12.1 million, representing a price per unit of $109,009 and a price per square foot of $107.96. The adjoining .86 acre parcel was purchased in the transaction for an additional $125,000. The buyer has yet to determine if they will sell the parcel or develop additional apartment units or amenities.
Loveland, located in northern Colorado, has experienced extraordinary growth in the recent years with the addition of several new developments including Centerra, an award-winning 3,000-acre master-planned community located just minutes from The Buttes Apartments. The Colorado Association for Manufacturing and Technology (CAMT), NASA and other partners recently announced a new Aerospace and Clean Energy (ACE) Manufacturing and Innovation campus in Loveland that will be the biggest economic development project Colorado has seen in 25 years with the potential to bring almost 10,000 jobs within ten minutes of The Buttes.
“Prior to the announcement relating to the ACE campus, Loveland was one of the State’s fastest growing employment regions. The ACE campus will continue to increase demand for multifamily and improve an already strong economy,” stated Jeff Hawks. “We had 14 buyers make offers on The Buttes. This kind of activity shows a high level of confidence in the Loveland apartment market.”
Construction of new apartment communities in northern Colorado has been very limited over the past five years. Since 2006, there have been a total of four market-rate apartment communities built in the Fort Collins-Loveland MSA totaling 850 units. Looking ahead, this trend of limited construction is expected to continue. The current pipeline remains well below the historical average of annual deliveries.
“Given the ever increasing demand for rental units in Loveland and the limited levels of new construction, vacancies will continue to remain under 5.0% making way for additional rent increases,” added Doug Andrews.
Constructed in 1997, The Buttes is a well-designed and maintained community offering a complete amenity package including a clubhouse with business and fitness centers, swimming pool, spa, dog run, and BBQ and picnic areas. The Buttes features spacious apartment homes with an average unit size of 1,010 square feet.
“Seventy eight percent of the homes at The Buttes are two bedroom, two bathroom apartments which are in high demand in the Loveland submarket, and the quality of construction and location make The Buttes very attractive to both renters and investors. At 111 units, the property is a perfect size for the private investor. Most properties built during the late 1990s and 2000s were 300 – 500 units and would sell above $35 million,” said Terrance Hunt
The Buttes was 97% occupied at the time of sale.
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, Doug Andrews at andrews@ARAusa.com, Jeff Hawks at hawks@ARAusa.com, Terrance Hunt at hunt@ARAusa.com, or 303.260.4400, or Ozment@ARAusa.com.
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 $5.5 billion in real estate transactions since 2005. For detailed information on ARA’s extensive multihousing investment services, visit www.ARAusa.com