ACRE Closes on $52.7M Loan for ‘Johnstown Plaza’
ACRE, a global real estate private equity firm, recently finalized a $52.7 million loan with a joint venture between Graycliff Capital Partners and Buligo Capital Partners, to support the newly-built Class A multifamily community ‘Johnstown Plaza,’ in Johnstown, Colorado.
Issued through ACRE’s debt fund “ACRE Credit I”, the loan will facilitate Graycliff and Buligo’s purchase of the 252-unit community. Executed in October, the two-year agreement includes options for three single-year extensions.
David Zimmerman, Cliff Joyner, and William Bould of CBRE served as brokers for the deal.
“With significant economic growth and development in the last three years, Johnstown has established itself as an increasingly sought-after place to live in the greater Denver-Fort Collins area. As the town’s population continues to grow, the need for an increased supply of high-quality rental housing is inevitable,” said Daniel Jacobs, managing partner at ACRE. “As one of the area’s newest residential developments, Johnstown Plaza presents immense potential to create a positive impact on the area’s residents, and we’re honored to support Graycliff and Buligo’s acquisition of the property.”
The loan also represents the second issued to the joint venture via ACRE Credit I, following a $29.5 million loan in December 2021 in support of the Retreat at Weaverville in Weaverville, North Carolina. To date, Graycliff has completed over $1.85 billion in commercial real estate investments, raised over $438 million in equity, and owns and manages over 10,000 residential units across 54 properties. Multi-national investment firm Buligo currently owns 96 properties throughout the U.S. and has over $1.9 billion of assets under management.
“The agreement with Graycliff and Buligo marks ACRE’s latest milestone as we pursue our mission to provide debt financing for rental housing developments across the country,” said Jacobs. “Despite the ongoing impact of complex and ever-changing housing market dynamics, we’re committed to providing financial support to key players throughout the multifamily industry through our fast-growing lending platform.”
Located at 5150 Ronald Reagan Boulevard, Johnstown Plaza was built and delivered by Carson Development. Since opening in the second quarter of 2022, the property is well into its initial lease-up, surpassing 35 percent physical occupancy in late August 2022.
The garden-style community offers a mix of one-, two-, and three-bedroom units with wood-style flooring, granite countertops, wood cabinetry, zebra blinds, stainless steel appliances, walk-in closets, central heat and air conditioning, washer/dryer, and private patios and balconies with mountain range views. Community amenities include a resort-style outdoor swimming pool, fenced dog park, basketball courts, grilling stations, resident business center, 24-hour workout facility, controlled access, 24-hour mail room, and courtesy package acceptance. The property also features one out-parcel self-storage facility providing on-site climate-controlled storage units.
Johnstown Plaza offers convenient access to Interstate 25 and Highway 34, the area’s main thoroughfares, as well as Boyd Lake State Park, River Bluffs Open Space, and Fossil Creek Reservoir Regional Open Space. Just 45 minutes north of Denver and northeast of Boulder, residents enjoy short commute times to the headquarters of numerous notable companies. The property is also adjacent to Johnstown Plaza Shopping Center, a premier shopping destination anchored by well-known retailer Scheels.