Transactions Report Week of 09.18.17
Marcus and Millichap Arranges the Sale of Sherman Village in Longmont
Marcus & Millichap, a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced the sale of Sherman Village II, a 62,000-square-foot blended mixed-use, office/retail property located in Longmont, Colorado, according to Bob Kaplan, regional manager of the firm’s Denver office. The asset sold for $7,400,000.
Bob Kaplan and Brandon Kramer, investment specialists in Marcus & Millichap’s Denver office, had the exclusive listing to market the property on behalf of the seller, a limited liability company. According to Kramer, “The property generated a lot of interest from local and national buyers given its proximity to the Boulder-Longmont corridor, the Diagonal Highway. Ultimately, an exchange investor coming out of the red-hot Denver multifamily market was the successful buyer.”
Sherman Village II is located at 1225 Ken Pratt Boulevard in Longmont. With a blended retail and office market vacancy estimated at 9.2 percent, the subject asset stands to offer great upside and cash flow by securing new tenants for the three vacant spaces. The current lease rates are below market by approximately 10-15 percent and the vacancy rate is higher than the average by approximately 8 percent. While there are no national tenants, the strong names of the local tenants draw traffic to the building. The location on the south side of the Diagonal Highway (return route from Boulder) makes the property a great stop for employees returning from work in Boulder or the “Silicon Mountain Corridor.”
Cushman & Wakefield Closes Multifamily Sale Near Colorado State University in Fort Collins
Cushman & Wakefield has announced the sale of Rams Park Apartments, a 48 unit, 120 bed student housing property next to Colorado State University (CSU) at 2226 West Elizabeth Street in Fort Collins, according to Steve Schwab, managing principal of Colorado.
The property sold on September 18, 2017, to a private partnership for $12,200,000. Brian Mannlein, director in the Capital Markets Team with Cushman & Wakefield’s Fort Collins office, along with Matt Zeman with Zeman Realty Partners had the exclusive listing to sell the property on behalf of a Colorado-based limited liability company.
“Rams Park Apartments is an extremely well-located student housing property built in 2002 with a great reputation around campus for being very well managed,” said Mannlein. “The asset garnered significant interest from parties from all over the country. Investors were ultimately attracted to the property due to the strength of Fort Collins and CSU, along with the quality of the asset and many amenities and transportation options immediately adjacent to the property.”
Rams Park Apartments was 100 percent leased at the time of sale. The property is located approximately a mile west of the CSU campus and adjacent to restaurants, grocery, night life and the Elizabeth Street Enhanced Transportation Corridor.
$11.1M Financing for 209-unit Multi-Housing Community in Colorado Springs
Holliday Fenoglio Fowler, L.P. (HFF) announces the $11.1 million financing for Peak 4420, a 209-unit, garden-style multi-housing community in Colorado Springs.
Working on behalf of POV Investment Group, LLC, an affiliate of Radford Investment Properties, the HFF team placed the 10-year, non-recourse, fixed-rate loan with Freddie Mac’s (Federal Home Loan Mortgage Corporation) CME Program. The securitized loan will be serviced by HFF through its Freddie Mac Program Plus® Seller/Servicer program. Loan proceeds will be used to pay off an existing Freddie Mac loan that the HFF team arranged in 2015.
Peak 4420 is located at 4420 East Pikes Peak Avenue to the east of downtown Colorado Springs and near major thoroughfares, including State Highway 24, Route 21 and Interstate 25, providing convenient access to the area’s core employment centers. The seven-building property is 96.65 percent occupied and features studio, one- and two-bedroom units ranging from 520 to 750 square feet. Community amenities include a swimming pool, dog park and playground.
The HFF debt placement team representing the borrower included Director Brock Yaffe.
“Radford has now closed several loans with HFF, and we have always been very pleased with their efficiency and ability to hold the agreed upon loan terms,” stated a representative from Radford. “We were able to lock-in an outstanding long-term fixed rate even in this low interest rate environment, all whilst their Houston office was dealing with a devastating hurricane. We couldn’t be happier with the result.”
ARA Newmark Announce Sale of The Clarkson Apartments, Denver
ARA Newmark announced the sale of the Clarkson Apartments, 1756 North Clarkson Street, Denver. The 60-unit building sold for $17,850,000, $297,500/unit.
“The Clarkson represented a rare opportunity to acquire a mid-sized, Class-A, LEED-certified asset with a one-to-one parking ratio. The property is located in one of Denver’s fastest growing submarkets, having experienced 25% population growth in the last seven years. The in-place cap rate, at the time of the sale, was 4.4%. The buyer assumed the existing Freddie Mac debt, with approximately seven years remaining in the term,” says Executive Managing Director Justin Hunt.