Observatory Park Apartments Sell for $92.5M
DENVER — Modera at Observatory Park Apartments, a 275-unit Class A newly constructed infill apartment community located at 1910 S Josephine St. near Denver University, has sold for $92.5 million.
The Bascom Group, LLC (“Bascom”), a private equity firm specializing in value-added multifamily, commercial, and non-performing loans and real estate related investments and operating companies, purchased the property on May 24, 2018.
Charles Halladay and Jamie Kline of Holliday Fenoglio Fowler (“HFF”) arranged the $66.75 million loan with TH Real Estate. The broker on the sale was Tim Shunta of National Realty Advisors, LLC and the property management team will be Mill Creek Residential.
Built in 2017, the property stands to capitalize on one of the strongest economies in the nation, thanks to Denver’s demonstrated labor force growth of 3.9 percent year over year, and a December 2017 unemployment rate of 2.6 percent, 2nd in the nation for areas with populations greater than 500,000. Additionally, Observatory Park is set to take advantage of its premium construction finishes due to the high median household incomes and strong demand for modernized rental housing throughout the University submarket.
“Observatory Park was a rare opportunity to acquire an off-market core-plus asset in an extremely tight market. The quality of the asset, proximity to employment, transportation, and educational facilities coupled with robust market fundamentals were extremely attractive to us.,” said Scott McClave, senior principal of Bascom. James Singleton, vice president of Bascom, also added, “The University submarket was very compelling to us due to highly desirable demographics, high home prices, and affluent renter base. The property was very well designed and constructed by Mill Creek Residential – a prominent national builder with an excellent reputation.”
Since 2005, Bascom and its affiliates have acquired 30 multifamily properties in the Colorado market, totaling 11,057 units, becoming the most active buyer during that timeframe. In 2016, Bascom sold The Breakers Resort, the second most valuable multi-housing trade in the nation for the year and the largest apartment deal in Colorado history. Over the past twelve months Bascom has completed more than $1.8 billion in multifamily transactions throughout the United States.
Bascom plans to implement an amenity expansion program and improved operations that will make Observatory Park a top choice among multifamily product in the immediate area.