DENVER – Oak Coast Properties, a developer, owner and manager of multifamily and hotel properties across the nation, today announced the $96 million acquisition of Aurora Hills Apartments in Aurora — Oak Coast Properties’ 7th acquisition in the Denver metro area, representing the firm’s continued bullish investment outlook on the booming region.
“With the purchase of Aurora Hills Apartments, our regional portfolio has now reached 3,600 apartment units in the Denver region alone,” said Phillip Nahas, Oak Coast Properties’ managing partner. “Population growth here is surging, as employment opportunities expand and overall quality of life factors remain highly appealing to many.”
The Aurora Hills community sits on 48 acres and comprises 47 rental buildings presented in both two and three stories. The collection of apartment homes includes 600 total rental units and provides regional renters with seven floorplans offering one-, two- and three-bedroom options. The average unit size is 1,022 square feet and the property is currently 94.8 percent occupied.
The amenities of the Aurora Hills Apartments are robust and set within the community’s ample grounds. Residents regularly take advantage of an onsite fitness center, heated outdoor swimming pool, picnic areas with grill stations, splash park, sports fields, basketball court, volleyball court, tot lots, dog park clubhouse and business center.
Strategically located within Denver’s Lowry submarket, Aurora Hills is situated near the major intersection of Alameda Avenue and S. Peoria avenue. Directly adjacent to the community are the Highline Park and Ballfields and the Aurora Hills Golf Course. The community also provides easy access to Denver International Airport and to downtown Denver via the light rail. Employment opportunities in the immediate region are considerable, supporting an estimated 180,000 jobs. Major nearby employers include: University of Colorado’s Anschutz Medical Campus, Gaylord of the Rockies, Amazon’s Fulfillment Center, Walmart’s Ecommerce Distribution Center, Panasonic’s Regional Headquarters, Buckley Air Force Base, Raytheon Corporation, Northrup Gruman, as well as the airport.
“This area benefits from incredible employment opportunities, however those opportunities are drawing a number of people to the region, which continues to amplify pressure on regional housing stock,” added Nahas. “There is a clear need for better apartment options and we have sought to help alleviate some of this demand by acquiring quality communities and making improvements to them.”
Originally built in three phases between 1970 and 1974, Aurora Hills recently underwent a renovation to many of its units. Oak Coast Properties is planning an additional $2.5 million upgrade to include exterior repairs, roof maintenance and moisture protection, amenity improvements, and additional work on mechanical, electrical and plumbing systems.
Miami-based Pensam Residential provided equity financing for the acquisition.
Charles Halladay, Lee Redmond and Brock Yaffe of HFF’s debt placement team assisted in securing a $76.7 million supplemental loan for the buyer through Freddie Mac’s (Federal Home Loan Mortgage Corporation) CME Program. The securitized loan will be serviced by HFF, a Freddie Mac Multifamily Approved Seller/Servicer for Conventional Loans.
CBRE’s David Potarf, Dan Woodward, Matt Barnett, Brady O’Donnell and Brian Eisendrath represented the seller in the transaction.
BLDG Management, the property management company affiliated with BMC Investments, will manage Aurora Hills Apartments. The firm also manages additional Oak Coast Properties’ assets in the region.