A multifamily portfolio comprising two properties and 434 apartments in metro Denver has been sold to affiliates of Harbor Group International (“HGI”) for $132.5 million, according to CBRE. The sale included The Prospector Modern Apartments at 3360 Esker Circle in Castle Rock and Ladora Modern Apartments at 18590 E. 61st Avenue in Denver.
Terrance Hunt, Shane Ozment, Andy Hellman and Justin Hunt with CBRE’s multifamily investment properties team in Denver represented the seller, The Garrett Companies. CBRE’s Debt & Structured Finance team arranged the acquisition financing, led by Shawn Rosenthal, Jason Gaccione, and Jake Salkovitz in New York along with Brady O’Donnell and Jill Haug in Denver.
Both multifamily properties were built in 2023 and are approaching lease-up. The garden-style communities have both one- and two-story floorplans with high-quality interior finishes and direct garage access for select units. The properties also have high-end community amenities including resort-style pools, full-circuit fitness centers, mail and package services, and pet parks and spas.
In southeast metro Denver, the Prospector has 238 units with one-, two- and three-bedroom floorplans averaging 1,013 square feet. The property is located near the intersection of Founders Parkway and Fifth Street, within a five-minute drive of downtown Castle Rock and Interstate 25, providing connectivity to the employment hubs in both Denver and Colorado Springs.
In northeast Denver, Ladora has 196 units with one-, two- and three-bedroom floorplans with an average apartment size of 1,024 sq. ft. The community sits near the intersection of 61st Avenue and Tower Road, less than a mile from the 61st and Pena Station light rail stop. The property is surrounded by multiple large developments expected to add thousands of new jobs and residents to the area, including the adjacent 490-acre Pena Station Next, aiming to be the nation’s first “smart city.”
“This sale is a good sign for the market as our top bidders were institutional buyers that were attracted to the scale that the multiple properties presented. This is a change from the past 12 months, which were primarily dominated by private capital and smaller transactions,” said Terrance Hunt, vice chairman, CBRE.
“Garrett Companies built very high-end communities that consisted of 44% large two-story units, with direct access garages that attracted residents to the townhome feel. The communities leased at a higher velocity to comparable assets in the same submarkets,” added Shane Ozment, vice chairman, CBRE.
The sale is the latest in a string of recent transactions arranged by CBRE’s Denver-based multifamily investment properties team, including the December 2023 closings for Platform at Union Station and Fielders Creek.