Apartments Near Cherry Creek State Park Sell for $54.5M
Oak Coast Properties has acquired Retreat at Water’s Edge, a 252-unit apartment community located in Denver near Cherry Creek State Park, for $54.5 million. The company is planning to invest $2.2 million in renovations aimed at improving the marketability of both units and amenities. The purchase comes directly on the heels of the October $123.5 million acquisition of ArtWalk Apartments at City Center, a multifamily asset also located in metro Denver.
“Retreat at Water’s Edge is an ideal purchase for us as it’s a quality-built community with significant CapEx improvements made to it by the previous owner,” says Phil Nahas, managing partner with Oak Coast Properties. “The apartments are extremely well located and, once our additional improvements are made, the community will be even more attractive to renters in the area.”
Originally built in 1985, the apartments average 752 square feet and are situated within six buildings over underground parking.
A recent $4.5 million enhancement to the property by the previous owner included exterior paint, a fully renovated fitness center and pool deck, as well as interior renovations to 57 percent of the rental units. The average monthly rent per unit is $1,233, with renovated units achieving a $200 per month rent premium.
Numerous opportunities remain for Oak Coast Properties to further improve the property for return-on-investment including enhancements to all remaining non-renovated units as well as elevator repair work, landscaping, parking lot fixes, and the addition of a pet washing station. These upgrades will be made as part of Oak Coast Properties’ investment plan.
JLL Capital Markets arranged a Freddie Mac Optigo® loan in the amount of approximately $38.15 million on behalf of Oak Coast Properties for the acquisition. Financing was led by senior managing director Charles Halladay, senior director Brock Yaffe, director Rick Salinas, and analyst Matt Cimino.
“Griffis Blessing did a phenomenal job renovating about 50 percent of the community and all of the amenities,” says Shane Ozment, “With Griffis Blessing’s investment upfront, the Oak Coast Properties will be able to continue the proven in-unit value-add program and drive yield with every additional dollar spent.”
Echelon Property Group, one of Colorado’s leading apartment management companies, will manage the community.
Photo courtesy of Oak Coast Properties