BOULDER, CO – The Bascom Group has bought Boulder View Apartments, a 68-unit infill class “A” apartment community located in the vibrant city of Boulder, Colorado. The $18.97 Million acquisition ($278,985/unit) closed on December 19, 2017.  David Potarf, Dan Woodward, and Matt Barnettof CBRE were the listing brokers for the sale. Brian Eisendrath of CBRE arranged the $13.3 million loan with California Bank & Trust.

Since 2005, Bascom and its affiliates have bought thirty-two multifamily properties in the Colorado market, totaling 10,782 units. Over the past twelve months Bascom has completed over $1.8 Billion in multifamily transactions throughout the United States.  

Built in 2014, Boulder View is located just minutes from downtown Boulder and surrounding recreational areas, offering a serene location with convenient access to employment and entertainment. Boulder is home to the University of Colorado-Boulder, and frequently receives accolades in well-being, quality of life and education; it was also recently ranked the number one most pleased place to live in the United States by National Geographic.  The eclectic town has a very affluent demographic with average household income of $122,753, and 73% of the population holding a Bachelor’s degree or higher. The property’s proximity to top employers like Google, IBM, Qualcomm, Medtronic, and Lockheed Martin makes it an attractive living option for Boulder residents. 

Scott McClave, Senior Principal of Bascom, comments, “Boulder View was a rare opportunity to buy a core-plus asset from a private seller in an extremely tight market. The quality of the asset, proximity to employment, and market fundamentals were extremely attractive to us.  Our buy price represented a significant discount to replacement cost and recent sales comparables in the Boulder market.”  James Singleton, Vice President of Bascom, also added, “The Boulder multifamily market presents tremendous opportunity. High barriers to multifamily development have made a limited apartment supply in a high-demand housing market that is experiencing rapid growth.”

Paul Zakhary, Vice President of Bascom, comments, “We plot to implement an amenity expansion program and improved operations that will make Boulder View a top choice among multifamily product in the immediate area.  Community improvements will include fitness center and common area additions as well as exterior upgrades and interior enhancements.”

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FEDERAL HEIGHTS, CO – A joint venture between Security Properties and funds managed by Oaktree Capital Management bought The Lodge on 84th, a 300-unit, Class B multifamily property located in Federal Heights, CO, for $46,500,000.  This was Security Properties’ fourth property bought with Oaktree. 

The property is located within the northern suburbs of the Denver Metro in Federal Heights, CO. Situated between the Westminster and Thornton submarkets, Federal Heights is largely recognized for its affordability, accessibility, and proximity to major demand drivers.  The property is a small drive from local employment centers in the cities of Westminster and Thornton and offers simple access to several major arterial transit routes connecting to Denver’s largest employment hubs.

The Lodge on 84th is a Class B garden-style apartment community constructed in 1973. The property consists of 300 units spread out across 25 residential buildings and 11.09 acres. The units feature a mix of studio, 1-bedroom, 2-bedroom, and townhome floorplans (approximately 20% of all units). All units feature private patios/balconies, fireplaces, and black/stainless appliances in the kitchens. Additionally, the property offers a comprehensive amenity package consisting of a swimming pool, a clubhouse containing a fitness room and a business center, a basketball court, and a dog park.

The property offers an attractive value-add opportunity through moderate interior and exterior renovations. Given the recent ownership changes, the property features multiple levels of renovations, but units generally consist of white cabinet faces, vinyl flooring in wet areas, new carpeting, black appliances, and brushed nickel hardware. SP will be continuing these renovations efforts as well as upgrading resident common areas/amenity spaces and improving the aesthetic and physical condition of the residential buildings.

SP currently owns affordable housing properties throughout metro Denver. The Denver MSA and is a thriving market with the lowest unemployment rate in the country, a diverse mix of industries and employers, and a rapidly expanding population in its second ring. 

Tad Johnson, Investment Manager at Security Properties says, “Workforce housing in Denver is a logical first-step for SP as we build our footprint in the metro. Denver has always been a target market, and we are excited to be active buyers in Colorado, starting with The Lodge on 84th.”

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RICHMOND, VA – Apartment Communities announced the acquisition of a 255-unit Class A multifamily community in the Richmond, Virginia MSA constructed in 2016 called Colony at Centerpointe, formally named Oxygen at Centerpointe. 

Colony at Centerpointe is located in the highly affluent Richmond submarket of Midlothian and Chesterfield. 

“The combination of modern design, prime location and generous amenities, including a fully-equipped fitness center, resort-style pool and game room center, positions Colony as the premier Class A multifamily community in the market,” said Jeff Sherman, the Company’s Executive Vice President and Director of Multifamily Investments.” 

PAC bought this community through a wholly-owned subsidiary and financed the acquisition by assuming a non-recourse first mortgage loan from American International Group.  The remaining principal balance on the AIG first mortgage loan is approximately $33.5 million, bears interest at a fixed rate of 3.68% per annum and matures on October 1, 2026.  There are no loan guaranties provided by PAC or our operating partnership.

Mr. Sherman added, “With this acquisition, we continue to add to our growing portfolio of best-in-class new multifamily communities.”

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