Buyers Attracted to Area’s Growth and Opportunity to Improve Returns Through Continued Renovation Program
DENVER – Aug. 31, 2018 – CBRE announced today that it recently completed the sale of two apartment communities in metro Denver: The Oslo, located at 11501 Washington Street in Northglenn, and The Croft, located at 7200 East Evans Avenue in southeast Denver. CBRE’s Dan Woodward, David Potarf, Matthew Barnett and Jake Young represented the seller of both communities, FPA Multifamily LLC of San Francisco. Separate buyers purchased the properties. Skyline Real Estate Investments of Littleton, Colorado, purchased The Oslo with a joint-venture equity partner for $26.75 million in a sale that closed Aug. 16. Summit Communities LLC of Aurora, Colorado, purchased The Croft for $21.50 million in a sale that closed Aug. 14.
“Value-add multifamily properties continue to be one of the most sought-after asset types across the entire real estate investment continuum. When you can find those properties in locations like The Croft and Olso, whether in-fill or a part of town experiencing new population and employment growth, it only serves to sweeten the offering and give the investor more confidence in his or her ability to improve returns,” said Jake Young, Vice President, CBRE.
Built in 1974, The Oslo consists of 180 apartment homes, including one, two and three-bedroom floor plans, across six, three-story rental buildings. The property has seen extensive capital improvements over the past couple years, including new signage and exterior paint, common area upgrades, a new fitness center, HVAC and hot water system upgrades as well as parking lot and landscape/irrigation upgrades. Two-thirds of the apartment units were also recently upgraded. The property is located in Northglenn, just south of the intersection of 120th Avenue and Washington Street, placing it near large employers including Dish Network, Avaya and DigitalGlobe as well as several large industrial centers currently in development.
On the southeast side of town, The Croft was also built in 1974 and consists of 138 apartment units, including studio, one and two-bedroom floor plans, across two, six-story rental buildings. The Croft also underwent a recent capital improvement campaign, which included a complete rebrand with new signage, exterior paint and façade improvements, common area upgrades including a new fitness center, and HVAC system improvements. About 60 percent of the community’s apartment units have undergone recent renovations. The Croft offers an in-fill location, near the intersection of South Quebec Street and East Evans Avenue in southeast Denver. Denver’s two largest employment centers—downtown and the Denver Tech Center—are both within a 10 to 20-minute drive. There is also more than 4.0 million sq. ft. of retailers within a two-mile radius.
“The Oslo and The Croft’s recent capital improvement campaigns have already gone a long way to improve operational efficiencies and position these properties as stable cash flow assets. By completing the renovation programs, the buyers have the opportunity to add even more value to their investment,” added Mr. Young.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
About FPA Multifamily, LLC
FPA Multifamily, LLC is a private equity real estate firm focused on the acquisition, renovation and management of both core plus and work force housing apartment communities. Founded in 1985, FPA has owned over 104,000 apartment units valued at over $11.0 billion. FPA is currently investing through its value-add focused FPA Apartment Opportunity Fund VI which will acquire approximately $1.8 billion of assets and its core plus focused FPA Core Plus Fund IV which will acquire approximately $1.4 billion of assets. Headquartered in San Francisco, FPA also has offices in Irvine, Portland, Denver, Minneapolis, Dallas and Atlanta. For more information, please visit www.fpamf.com.
