Trion Properties along with equity partner PCCP, has acquired Loft 9 Apartments, a 418-unit multifamily community located at 11100 Dartmouth Avenue in Denver, for $82.5 million. The acquisition more than doubles the firm’s holdings in the Denver metro area, bringing its portfolio to over 700 units since entering the market last year, and over 1,100 in the state of Colorado.
“This was an exceptional opportunity to acquire a well-located community off market, which we were able to secure based on our established broker relationships and a unique situation that presented itself,” explains Max Sharkansky, managing partner at Trion Properties. “We were initially drawn to Denver due in large part to the region’s strong employment market. It is gaining a reputation nationally as a top tech hub and seeing the expansion of many major employers, including Amazon, which is planning to add 2,700 jobs in Denver. This property is positioned to benefit greatly from this ongoing growth, as it is in close proximity to several employers and offers convenient access throughout the entire Denver metro area.”
Loft 9 Apartments consists of five buildings and features spacious one- and two-bedroom homes. Community amenities include a resort-style pool, state-of-the-art fitness center, business center, resident clubhouse, resurfaced sport courts, and upgraded outdoor areas. Loft 9 is also within a 10-minute drive of the Southeast Business Corridor, which is comprised of over 37 million square feet and includes the Denver Tech Center. It is home to a majority of Denver’s Fortune 500 headquarters, including Arrow Electronics, Qurate, Dish Network, and others.
“Denver saw a population increase of approximately 20 percent over the past 10 years and is continuing to attract top professionals seeking robust employment opportunities and a high quality of life,” continues Sharkansky. “The Southeast Business Corridor’s features, including significant infrastructure investment and diverse range of industries, are driving employment and population growth throughout the southeast Denver submarket in particular.”
David Moghavem, director of acquisitions at Trion Properties, says: “Our ability to purchase this asset at a very attractive basis, well below replacement cost, represents an increasingly rare opportunity amidst rising construction costs and supply constraints. The asset – which was constructed in 1974 – provides the potential for significant upside through fresh branding, addressing deferred maintenance, and continuing the previous ownership’s proven renovation strategy, which will bolster the community’s appeal through unit interior upgrades such as the addition of modern kitchen appliances, vinyl plank flooring, new countertops, and new lighting packages.”
According to Moghavem, Trion has successfully executed similar renovations at multifamily communities throughout Colorado, California, Oregon, and North Carolina. The firm will also improve operational efficiencies by drawing on strategic local relationships, including bringing on Echelon Property Group to take over the day-to-day management of the community.