DENVER, CO – TruAmerica Multifamily and the Magnolia Real Estate Fund have bought Fox Creek, a 287-unit apartment community in Thornton, CO in an off-market transaction valued at $53 million.  Fox Creek is the sixth multifamily investment in the Denver area for TruAmerica where the firm has bought approximately 3,000 units in the past three years.

Built in two phases, starting in 1984 and completed in 1999, Fox Creek features a mix of large one-, two- and three-bedroom units in a low-density park-like setting.  The 19.5-acre property includes two resort-style swimming pools, clubhouse with 24-hour fitness center, playground, dog park and spa and bike shop.

“Fox Creek represents a right value-add opportunity as the majority of the units, which feature vaulted ceilings, fireplaces and full size washer/dryers, have been largely untouched,” said Greg Campbell, Senior Managing Director of Acquisitions and Dispositions for TruAmerica.    “About a quarter of the units also have lofts, an attractive feature not found at other assets in the immediate area. At our cost basis, we can implement a comprehensive and thoughtful renovation plot that will allow Fox Creek to compete with newer properties in the area and still be affordable to working families.”

The renovation will start with improvements to common areas, including the pools and pool decks, clubhouse, fitness center, signage, and landscaping to enhance the property’s curb appeal.  TruAmerica will then start a custom interior renovation program beginning with vacant units and continuing as units turn over so as not to displace current tenants.  Apartment upgrades will include all new stainless-steel appliances, new bathroom countertops and cabinets, faux-wood vinyl flooring in living areas, fresh paint and accent walls, and upgraded plumbing fixtures.

Fox Creek is located at 12220 Colorado Boulevard in Thornton, a bedroom community approximately 10 miles north of Denver boasting strong rental fundamentals.

Construction activity in the northern Denver submarkets has been limited compared to the overall metro Denver construction pipeline of more than 23,000 units. Just 2,564 units are being added over a large geographical area in northern submarkets, which encompass Thornton, Westminster and Arvada.  The Thornton submarket enjoys strong apartment demand, as families with children prefer this community to Denver because of its highly rated ADAMS 12 School System and affordable rents. Fox Creek is especially attractive because it is within an simple walk of retail amenities, nearby employment centers and Denver’s new RTD Eastlake Station, which will be completed in 2018. This rail station will serve the northern extension of Denver’s light-rail system to provide quick transit from Thornton to the urban core.

Fox Creek is the first investment for the newly launched McLean, VA-based Magnolia Real Estate Fund.

“The Fox Creek property presents an attractive opportunity to invest in a well-located asset at a discount to replacement cost in one of the most fundamentally sound rental markets in the nation,” said Magnolia Managing Partner David Kent.  “Most importantly, in TruAmerica we have a partner with a successful track record of making value and delivering appropriate risk adjusted returns to its partners.”

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FARMINGTON HILLS, MI – City Club Apartments (CCA) announced that it will start managing its $2 billion, 10,000-unit apartment and penthouse portfolio. City Club Apartments CEO Jonathan Holtzman made the announcement.

“This is a historic day for our customers, investors, partners and the industry,” said Holtzman. “We are executing on the final piece of our CCA vision—rethinking, redefining and delivering the ultimate urban and suburban-urban apartment experience. From the outset, we committed to a design, hospitality, service, amenity and value creation plot that is unequaled.  And, as we go closer to full execution, we know there is no one who will care as much about our residents and our communities, or fully- realizing this huge, bold and disruptive vision as we do. We are completing the ‘relationship’ with our customer.”

Beginning May 1, CCA will start managing the first five of its 30 properties.

Those properties include: Ann Arbor City Apartments, Ann Arbor; Central West End Apartments, St. Louis; Plaza Club City Apartments, Kansas City; 800 Tower City Apartments, Louisville and CCA, CBD, Cincinnati.  All of these communities will be rebranded as City Club Apartments and the rest of the communities will transfer to CCA Management by year-end.  “This is a fantastic tale,” said Holtzman.  “It’s the beginning of the next 100 years of a company that has been innovating, elevating and making since 1919.”

The CCA brand, which started less than a year ago with 20 employees, is expected to grow to more than 275 people by the end of 2017.  “We are recruiting the very best hospitality and apartment talent in North America,” said Holtzman. “It’s no coincidence that our executives are all owners. It’s critical that the interest of the company is always aligned with our customers and investors.”

That is reflected in CCA Management’s first two hires.  Dale Phillips, a 23-year industry veteran and former President of Mark Taylor Residential joined CCA earlier this year as President and COO of City Club Apartments Management.  Phillips is nationally recognized for his hospitality and business acumen and his ability to develop and do on industry-leading and award-winning employee engagement, loyalty, training and growth and performance programs. He is also credited for driving tremendous value creation for the Mark Taylor portfolio. According to Phillips, one of the most integral components of his team realizing CCA’s bold vision is the fact that the company controls its real estate. “Stability is everything in our business and our ownership team manages for value and thinks generationally. That is a right differentiator,” he said.

Don Gillette, CCA’s Senior Vice President of People and Culture, joined the company after nearly five years with MGM Resorts and 15 years with Four Seasons, where he set the international bar for the delivery of uncompromising people centric service.  “We are attracting highly engaged, like-minded leaders and staff that always place the resident first, reckon differently, are hungry to learn and grow and wake up every morning saying ‘I want to find a better way,'” said Gillette.  “In return, we are providing them with unlimited opportunities and will invest heavily into their growth.  Highly engaged employees make highly engaged residents.”

This announcement follows the June 3, 2016 announcement that Jonathan Holtzman was leaving Village Green with all of the company’s real estate but one, and the entire $500 million new development pipeline. 

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CHARLOTTE, NC – Robbins Electra, one of the fastest-growing multifamily owner-operators in the Southeastern U.S, has bought a 408-unit apartment community in Charlotte, NC. The asset, currently known as Pavilion Crossing, will be rebranded as Grand Reserve at Pavilion.

This is Robbins Electra’s eighth garden-style, value-add property acquisition in 2017. The company now holds eight multifamily rental communities in Charlotte, totaling 2,100 apartment units. Nationally, Robbins Electra’s portfolio includes more than 23,000 apartment units totaling over $2.5 billion in value.

“We are pleased and excited to add Grand Reserve at Pavilion to our Charlotte portfolio, which now includes eight sizable properties,” said Joe Lubeck, CEO of Robbins Electra. “It is well built, well located and bought advantageously. Our plans will include a dramatic and comprehensive renovation that we know the residents will like.”

Constructed in 2003, Grand Reserve at Pavilion is located at 1801 Willow Haven Lane and features one-, two- and three-bedroom units in three-tale, garden-style buildings. The community offers resort-style amenities including a swimming pool, sports court, clubhouse, fitness center, soccer field, BBQ areas, fire pit sitting areas, among others. The property is currently 95% occupied, with average monthly rents of approximately $919.

Robbins Electra will carry out a $3.6 million property renovation, upgrading apartment interiors by including granite countertops, washer and dryer in all units, black appliances, plank flooring in common areas, updated lighting fixtures and enhancing the community’s amenities.

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