Real estate investment company, Brinkman Real Estate, sold Denver multifamily community, Windom Peak Apartments, last week for $24.65 million, or $262,234 per unit. The company purchased the property in 2019 for $20.6 million.
Windom Peak is a Class B/C workforce housing property located in Metro Denver built in 1964 with 94 units. The property design includes a mix of one-story apartment buildings and two-story townhomes offering one-, two-, and three-bedroom floorplans.
Brinkman’s financing for the acquisition in 2019 included utilization of the Multifamily Green Advantage Program which requires borrowers to make “green” upgrades to reduce water and energy consumption by at least 30 percent. Over the course of the company’s ownership, they added an energy-efficient boiler, insulation to reduce energy loss on existing systems, and low-flow toilets and fixtures. This focus on sustainability is in line with the company’s standing as a certified B Corp, a designation they’ve held since 2018.
Brinkman’s business plan for Windom Peak Apartments originally projected a 10-year hold for the asset, but the company took an opportunistic exit to maximize returns and hedge market risks for the investment. This strategy led to the disposition of the asset after a three-year hold.
As prices continue to rise rapidly in Denver and other major metro areas, Brinkman is executing an aggressive expansion strategy that follows population and job growth trends into high-growth secondary markets throughout the Intermountain West Region. Since Q1 2021, the company has achieved nearly $370 million in transaction volume, adding more than 1,000 units to its portfolio, and rising as one of the most active buyers in several markets. The company will look to exchange the proceeds of the sale into further expansion throughout the mountain states as they continue to seek core-plus and value-add multifamily assets in similar markets.
Brinkman was represented by Jake Young, David Potarf, Dan Woodward, and Matt Barnett of Walker & Dunlop in the sale.
“We’re always keeping an eye on the market, and we act quickly in the best interest of our investors,” said Kevin Brinkman, co-founder and CEO of Brinkman Real Estate. “This sale afforded us the opportunity to contribute to continued mountain west expansion.”
Brinkman Real Estate’s assets under management has grown to $475 million this year. Its portfolio includes a focus on multifamily, in addition to mixed-use, office, hospitality, and retail assets.