Knightbridge Capital Buys Value-Add Multifamily Property in Denver
Knightbridge Capital, a Denver-based real estate investment firm, has acquired Gaucho Apartments at 1201 N Clarkson Street in Denver’s Capitol Hill neighborhood. Kyle Malnati, Sam Bretz, and Zack Jenkins of Calibrate Real Estate represented the seller, Tremont Investment Group, in this transaction.
Gaucho Apartments is a 39-unit property, built in 1966 and sold for $7,300,000; $187,180 per unit and $278.73 per square foot. The property consists of 30 Studio/1Ba, 8 1Br/1Ba, and one 2 Br/1Ba units. This is the second acquisition for Knightbridge Capital in the past 16 months
Knightbridge Capital plans to complete the interior and exterior renovation of the property. The construction budget will include interior renovations including paint, luxury vinyl, carpet, appliances, countertops, flooring, plumbing, and light fixtures. In the common areas, renovations will include a new roof, paint, carpet, lighting, parking lot, exterior paint, balconies, new signage, and an updated courtyard. Cornerstone Apartment Services will manage the construction and day-to-day operation of the building.
“Gaucho Apartments represented the partial completion of a 1031 Exchange and a strategic opportunity for Knightbridge Capital to buy a value-add multifamily asset. The 1031 Exchange began two months ago when we sold a newly renovated apartment community in Arvada for $4,950,000. We were tasked with finding a replacement property on behalf of our investors, but we were not willing to compromise our rigorous acquisition standards. This opportunity was presented off-market and fit perfectly with our business plan objectives,” said Matt Ritter, co-founder/principal at Knightbridge Capital. Matt is also a co-founder/principal at Pinnacle Real Estate Advisors.
“This sale is particularly special for me as I was able to work with a buyer and seller that I’ve known for the majority of my 18-year career. I’ve sold three properties for the seller in the past year and a 4th property back in 2015, but our relationship really began 15 years ago as I referred him new business opportunities and we worked with several mutual clients,” said Kyle Malnati, of Calibrate Real Estate. “The buyer, Matt Ritter, is an amazing mentor that guided me and shaped my learning experience on a daily basis for the first seven years of my career. Matt gave me my first job as a 21-year-old college graduate and taught me the brokerage business during my time at Pinnacle Real Estate Advisors.”
Ritter stated, “Kyle Malnati and his team at Calibrate did an amazing job navigating a complex deal structure with a long list of inspection requirements which included supervising the leasing process of several apartments in a short timeframe. The strength of Kyle’s relationship with the seller and Calibrate’s attention to detail gave everyone confidence that we would accomplish our objective on a strict schedule; satisfying our 1031 Exchange and our rate-lock with our lender.” said Ritter.