Summit Management Services Inc., an Akron, Ohio based housing management and development firm that owns and manages more than 1,350 apartment units in Colorado, paid $86 million for the latest addition to its portfolio.
Stonegate, a 350-unit garden-style community on 24 acres at 11815 Ridge Parkway in Broomfield, is Summit Management Services’ first purchase in the Broomfield/ U.S. 36 corridor, an area where it has been pursuing growing its holdings.
“Summit Management owns assets in Fort Collins and has been targeting that Broomfield/U.S. 36 corridor for awhile,” said Holliday Fenoglio Fowler LP’s Jordan Robbins. “They really like that area.”
Robbins, along with HFF’s Jeff Haag, represented the out-of-state seller of the community, constructed in 2001.
“We had a ton of interest in Stonegate,” Robbins said of the community, which offered a value-add play to investors. “The valueadd market is still really competitive. There is a lot of capital chasing valueadd deals, whether they are 2000 product like this or even older, ‘80s and ‘90s built product. We’re seeing still a pretty deep buyer pool on the value-add side.”
Summit Management Services plans to make improvements to the exterior and common areas of Stonegate as well as make interior upgrades.
Stonegate, which comprises 18 two- and three-story buildings offering a mix of one-, two- and three-bedroom apartments, features attached and detached garages. Additional unit amenities include 9-foot ceilings, air conditioning, ceiling fans, garden tubs, gas fireplaces, in-home washers and dryers, private balconies, walk-in closets and available storage.
Community amenities include controlled access, a resort-style swimming pool, hot tub, grilling area, playground, dog park, 24-hour fitness center, resident lounge with a full kitchen and fireplace and “sweeping” views of the Front Range.
Additionally, Stonegate is located less than 3 miles west of 36, near Flatiron Crossing’s 2 million square feet of retail options and just west of Interlocken Advanced Technology Environment, which comprises 4 million sf of office space. There are strong demographics and jobs, which also were a draw for the buyer, added Robbins.
At the time of the sale, Stonegate was 95 percent occupied.
In addition to Summit Management’s Colorado holdings, the firm also owns and operates a collection of housing styles with more than 3,000 apartments in Ohio and North Carolina.
