Denver-based BMC Investments(BMC) has recapitalized a three-property portfolio of workforce housing apartment communities—Landon Park, Aurora Hills and Vista Park—with a fund managed by DRA Advisors, a New York-based registered investment advisor. The recapitalization will be one of BMC’s largest with an institutional capital group, further establishing BMC within the institutional markets. BMC— through its property management division (BLDG Management)—will retain property management and oversight of an extensive $12 million renovation plan while continuing to operate the properties.
“We are excited to launch a partnership with DRA Advisors,” said Jeff Stonger, chief investment officer of BMC Investments. “This transaction is just the first step of a larger, programmatic strategy with DRA to execute on a workforce housing strategy targeting in excess of $500M in deals together.”
“These assets are primed to capture value-add upside via the continuation of the interior unit renovation plan and the strong fundamentals of the overall Denver market and submarket,” said Brett Gottlieb, managing director of DRA Advisors. “We have witnessed the strength of the BMC team and their operations, and we look forward to continuing to grow this joint venture relationship.”
All three properties in the transaction portfolio are located in Aurora. The portfolio encompasses 1,346 total units, marking one of the largest workforce housing transactions in Denver in the last 18 months. Aurora Hills is the largest of the three properties with 600 units, followed by Landon Park with 464 and Vista Park with 282. The three-year renovation plan will make improvements to both the interiors and exteriors of each property with a focus on providing and maintaining clean, safe and affordable workforce housing opportunities in the Aurora community.
“We recognize the need for affordable workforce housing options in the Denver metro area and we feel it is our responsibility to help create these environments for our residents and to help better the neighborhoods in which we operate,” said Matt Joblon, chief executive officer of BMC Investments. “This partnership with DRA furthers that commitment.”
Dustin Stolly and Jordan Roeschlaub, co-heads of Newmark’s Capital Markets Debt & Structured Finance team, arranged the recapitalization on behalf of DRA and BMC. Stolly and Roeschlaub, in partnership with Blake Okland, vice chairman, head of Multifamily Investment Sales, executed the collaborative effort under Newmark’s Strategic Transactions Group.
“As one of the most significant of its kind in Denver this year, this deal underscores the strength of the Newmark and BMC platforms within the institutional markets,” said Stolly. “We’re excited to have arranged this complex, off-market transaction in partnership with the powerhouse that is DRA.”