Lowry Multifamily Property Sells for $62M
DENVER — Los Angeles-based Gelt Inc., a multifamily investment company, has acquired Cedar Run Apartments, a 384-unit multifamily community located at 888 S. Oneida St. Maxx Properties sold the asset for $62 million. According to NKF Research, this is the largest multifamily transaction in the Lowry submarket in the past 18 months.
Situated on 14 acres, Cedar Run features nine residential buildings with 240 one-bedroom units and 144 two-bedroom units, with an average size of 846 square feet. The property was built in 1970 and partially renovated between 2012 and 2017.
According to Jeff Harris, COO with Gelt, the company plans to improve the asset through a strategic renovation program to meet the growing demands of renters. This will include renovating unit interiors by installing vinyl plank flooring throughout, adding new cabinet faces, hardware, lighting fixtures, as well as resurfacing the countertops. Common area improvements in our enhancement strategy include renovating the leasing office, business center, and gym, and adding a dog park, package locker room, and upgraded BBQ area.
Terrance Hunt and Shane Ozment of Newmark Knight Frank (NKF) represented the seller in the deal. Mitch Clarfield and Ryan Greer of NKF secured a 10-year, full-term, interest-only loan at 70 percent loan-to-value and a 4.2 percent rate through Freddie Mac’s Green-Up program.
“Over the course of their ownership, Maxx Properties put significant effort into capital improvements and keeping the building systems in great condition,” stated Hunt. “The property’s location and style, with underutilized clubhouse space, provide Gelt the opportunity to take the asset to the next level with their scheduled improvements.”
Photo courtesy of REBusiness Online