LA Investor Acquires Workforce Housing Apartments for $52M
DENVER – Oak Coast Properties, a real estate investment firm focused on core plus, value-add and opportunistic real estate acquisitions across the United States, announced today they have acquired a majority interest of Villas on 76th, a 384-unit workforce housing apartment complex in Denver.
The current owner, Cherry Creek-based BMC Investments, will maintain a minority interest in the project. The $52.5M deal is being financed by HFF. Oak Coast Properties will control a majority interest in the project while BLDG Management, an affiliate of BMC Investments, will retain management and continue to operate the property. This is the fifth investment partnership between Oak Coast Properties and BMC and the sixth Oak Coast Properties management assignment for BLDG Management.
“With the acquisition of Villas on 76th, our portfolio in Denver will total over 3,000 units,” said Phillip Nahas, Co-Founder and Managing Partner of Oak Coast Properties. “The multifamily market in Denver continues to outperform, giving us great confidence in our assets. BLDG Management operates our properties to the highest of standards and we look forward to continuing to work alongside them on this newest addition to our Denver portfolio. “
Located north of the Boulder Turnpike, Villas on 76th offers 384 apartment homes as well as community amenities including a playground, pet park, swimming pool and newly renovated clubhouse. BMC acquired Villas on 76th in 2013 and made substantial investments in renovating much of the deferred maintenance as well as updating the look and feel of the community. Oak Coast Properties and BLDG Management are aligned in their commitment to providing residents with an outstanding rental experience as well as continuing improvements to the community.
“With strong economic and real estate fundamentals that allow for sustained growth, we believe Denver is a great market with a long-term hold and we look forward to making additional strategic investments in the Denver multifamily market,” said Nahas.
ARA Newmark represented the seller.
“Villas on 76th is located on the Highway 36 Corridor, which is experiencing remarkable growth right now. Workforce housing has been seeing strong appreciation in rent, as employment options abound in nearby Interlocken Business Park, Boulder and downtown Denver. We saw tremendous interest in this asset. Large, un-renovated workforce housing communities, which offer both affordable living as well as value-add opportunities, are scarce in the market,” said ARA Newmark Vice Chairman Terrance Hunt.
Image courtesy of Oak Coast Properties.