Transactions Report Week Ending 03.15.19
BMC Investments and Oak Coast Properties Announce $177M Acquisition of Ivy Crossing Portfolio in Denver
BMC Investments and Oak Coast Properties announced the $177 million acquisition of Ivy Crossing, a portfolio of 1,023 units comprised of the Timberline, Woodhaven and Westwood Apartments, three multifamily properties that provide critical workforce housing in Denver. The acquisition marks the ninth and largest investment partnership between BMC and Oak Coast Properties, as well as the eleventh Oak Coast Properties assignment for BLDG Management, the property management affiliate of BMC.
HFF arranged the 15-year, full-term I/O $120 million financing for the acquisition through Freddie Mac’s Optigo Social Impact initiative.
“As our single largest takeover to date, Ivy Crossing marks a major milestone in our commitment to improving workforce housing in the Denver metro area,” said Matt Joblon, CEO of BMC Investments. “Not only does it demonstrate our ability to execute an extremely complicated transaction — combining three properties into one to create one of the largest multifamily assets in Denver — but it also further solidifies the strong partnership between Oak Coast Properties, BMC Investments and BLDG Management.”
The multifamily properties included in the Ivy Crossing portfolio are all located within the prestigious Cherry Creek School District, widely recognized as one of the best in the state. The three multifamily properties provide critical workforce housing in the region and will be renovated and rebranded as one large community named Ivy Crossing.
“This acquisition represents a true one-of-a-kind opportunity within metro Denver to reposition three individual legacy assets and to create critical mass by combining them into one of the largest in a region where housing is in high demand,” said Phillip Nahas, managing partner of Oak Coast Properties. “Not only is the upside potential of this value-add portfolio substantial, but these apartments will provide improved housing options for Denver’s workforce.”
Terrance Hunt, vice chairman of ARA Newmark in Denver represented the buyers in the transaction.
The HFF team that arranged the Freddie Mac loan on behalf of BMC and Oak Coast Properties was led by Senior Managing Director Charles Halladay and Directors Brock Yaffe and Rick Salinas.
NorthMarq’s White Plains and Denver Offices Arrange $5.6M Refinance of UCHealth Emergency Room in Arvada
Robert Ranieri, senior vice president/managing director of NorthMarq’s White Plains-based regional office collaborated with a David Link, senior vice president/managing director of NorthMarq’s Denver-based regional office to secure the $5.6 million refinance of UCHealth Emergency Room, a 7,748-square-foot medical office property located at 15240 West 64th Avenue in Arvada.
The transaction was structured with a 17.5-year fully-amortizing term. NorthMarq arranged financing for the borrower through its correspondent relationship with a life insurance company. University of Colorado Hospital Authority represents the property’s major tenant.
“Financing was provided on a long-term self-amortizing basis to satisfy the owner’s 1031 needs,” explained Ranieri.
Pinnacle Announces the Sale of Three STNL Retail Buildings in Aurora
Justin Krieger, principal at Pinnacle Real Estate Advisors, LLC, announced the sale of three contiguous single tenant net leased retail buildings located at 9103, 9115, & 9131 East Colfax Avenue in Aurora. The properties sold for $1.9 million on March 1, 2019 in an all cash transaction.
The buildings, leased to Family Dollar, Tacos y Salsas, and Sunrise Chinese Restaurant, total 13,632 square feet and sit on a 1.2 acre lot that spans the entire north side of East Colfax Avenue from Alton Street to Beeler Street. Justin Krieger represented the seller, a Denver-based family partnership that had held the property for approximately 50 years. The buyer, also a Denver-based family partnership, purchased the property in a 1031 exchange.
“This deal represented a unique opportunity to purchase three contiguous buildings providing steady cash flow in the short-term with long-term upside in developing a lot stretching from one corner to another along metro Denver’s major east/west corridor,” said Krieger.
Denver-Based Walker Reynolds Acquires Hampton Inn Portfolio
HREC Investment Advisors arranged the sale of a three-property portfolio including the 122-guestroom Hampton Inn Appleton-Fox River Mall Area located in Wisconsin, the 119-guestroom Hampton Inn Milwaukee/Brookfield located in Wisconsin and the 135-guestroom Hampton Inn West Des Moines located in Iowa. Denver-based Walker Reynolds acquired the select service portfolio.
HREC Investment Advisors exclusively represented the seller, affiliates of The Raymond Group and North Central Group both headquartered in Madison, Wisconsin during the transactions. The marketing, negotiations and final sales were led by Mike Cahill, CEO and founder in the Denver office, Scott Kaniewski, senior vice president, Tom Sommer, vice president, Jeff Preston, vice president, all three located in the Chicago office and Mike Dube, vice president, located in the Denver office.
“The hotels represented an exceptional opportunity to acquire high quality investment grade Hilton select service hotels from the original developers. The marketing process generated significant interest and as a result we were able to secure favorable pricing and terms for our seller,” said Cahill.