DB Capital Management (DB Capital) has acquired its second multifamily asset in the Denver metro in the last month with the purchase of Gardens on Paris, a 149-unit apartment community in Aurora, for $24.55 million. In the last 12 months, the firm has added nearly 500 units to its local portfolio.
Completed in 1969, Gardens on Paris offers one-, two- and three-bedroom units as well as studio apartments. Located at 1612-1690 Paris St. and 1645 Peoria St., the property was 93 percent occupied upon acquisition.
“Housing affordability continues to be a major issue in Denver,” said DB Capital CEO Brennen Degner. “The new inventory of apartments being delivered to submarkets like Aurora are Class A luxury rentals pricing out much of the market. It’s important and strategically advantageous to provide quality rental housing that is affordable to working-class families and young professionals. Our growing Denver acquisitions strategy and value-add business plan for properties like this one in high-growth submarkets will do that.”
DB Capital plans to rebrand the property and implement a $3.3 million capital improvement program that will focus on modernizing exterior and common areas to increase curb appeal and allow the property to compete with newer product in the market, but at a lower price point. The plan includes renovating all units with modern finishes as well as upgrades to the clubhouse, courtyard and playground.
Gardens on Paris is located directly adjacent to the Fitzsimons Life Science District, a 578-acre campus that is fueled by $5.4 billion in investment. At full build-out, the campus will be one of the nation’s largest and most advanced life sciences communities, comprising 18 million square feet of space and hosting 45,000 jobs. The property is also just 15 minutes from the Denver Tech Center (197,500 jobs) and 25 minutes from Downtown Denver.
“Despite its impressive job growth, Aurora remains one of the most affordable submarkets in the Denver metro,” added DB Capital Vice President Darren Hulick, who leads the firm’s Denver acquisition team. “Given the outlook for continued job growth and limited supply of affordable quality rental housing, Gardens on Paris is well-positioned in the market.”
Erik Toll and Spencer Bradley of CBRE represented DB Capital on the investment sales side of the transaction while Brian Eisendrath and Cameron Chalfant of Institutional Property Advisors sourced the financing.