Value-Add Multifamily Property in Broomfield Sells for $50M
DENVER – Willow Run Village multifamily community located at 12621 Zuni Street in Broomfield has sold for $50 million.
According to CBRE specialist, continued investor interest in value-add multifamily opportunities is driving competition for available properties and strong pricing.
CBRE’s Dan Woodward, David Potarf and Matt Barnett represented the seller, Griffis/Blessing of Colorado Springs. The buyer, Hamilton Zanze of San Francisco, purchased the property in a sale that closed April 18, 2018. CBRE Capital Markets, Debt & Structured Finance arranged the financing.
“Willow Run Village is a great example of what many multifamily investors are seeking in Denver. It’s a late 1990s-built, value-add opportunity located in an area experiencing impressive job and population growth in hand with increasingly restrictive development options,” said Matt Barnett, senior vice president, CBRE Capital Markets, Multifamily Investment Properties. “There is more capital available today for value-add than any other multifamily strategy, which is resulting in heavy competition and strong pricing for properties like Willow Run.”
The property, purchased from Griffis/Blessing, consists of 10 two-and three-story residential buildings totaling to 222,768 square feet. This is the 14th property the firm owns in Colorado, and the eighth in the Metro Denver area.
“Willow Run presents a true value-add opportunity,” said David Nelson, managing director of acquisitions for Hamilton Zanze. “We are planning an extensive interior renovation campaign, resulting in a strategically positioned asset in a fabulous location.”
Built in 1999, Willow Run Village is located at 12621 Zuni Street and offers one-, two-, and three-bedroom units ranging from 859 – 1,248 square feet. It is located very near the 128th Avenue onramp for I-25, one of the region’s most traveled thoroughfares. The property is also adjacent to a greenbelt for pedestrian and bicycle traffic and within short walking distance of the Broomfield Commons Open Space.
“Griffis/Blessing purchased Willow Run in late 2012. We invested approximately $2.7 million in capital improvements to the property, which included refurbishing the building exteriors, remodeling the clubhouse and fitness center, enhancing the pool area and other shared amenities, and upgrading unit interiors. Willow Run was our standard value-add play,” said Gary Winegar, president of Investment Services, Griffis/Blessing.
Hamilton Zanze plans to improve common-area amenities and will be enhancing the package locker area and refreshing the on-site dog park. The company plans to update select units with new stainless-steel appliances, upgraded hardware and lighting fixtures, faux wood flooring, and new paint. Property management responsibilities will be transitioned to Mission Rock Residential, a Denver-based company.
Photo courtesy of CBRE