Denver-based BMC Investments announced today that is has paid $50.8 million for the 434-unit Artisan Townhomes and Apartments in Denver.
Its partner in the purchase for the community at 10025 E. Girard Ave. is Oak Coast Properties from Peak Capital Partners.
“The Artisan property is an acquisition with significant potential because of its strong location and connectivity to a number of destinations,” said Matthew Joblon, CEO of BMC.
“We, along with our partner, plan to extensively improve the property for the long-term,” Joblon said.
The Artisan, built in 1973, is minutes from the Denver Tech Center and the Interstate 225 light rail.
Nearby amenities include Kennedy Golf Course, Cherry Creek State Park and the Hampden Avenue Retail Corridor.
This is the second acquisition partnership for BMC and Oak Coast Properties. Oak Coast is a California-based developer, owner and manager of multifamily and hotel properties. It also marks BMC’s 14th apartment community purchase in the Denver area since 2011.
“This acquisition marks an important milestone as it signifies more than $500 million invested in multifamily and hotel real estate assets in three years,” said Phillip Nahas, Oak Coast Properties’ Managing Partner.
“The Artisan also grows our Denver apartments portfolio to over 1,500 units and provides an opportunity for significant upside potential through a renovation plan that capitalizes on rising rental rates, unit demand and lack of new supply in this in-demand region,” he added.
The Artisan includes 53 buildings and 434 units covering more than 391,000 square feet and about 18 acres.
Units average 901 sf in size. The property is 95 percent occupied.
BLDG Management, the property management company affiliated with BMC Investments, will manage the property. Renovation will begin immediately to address deferred maintenance, update the property aesthetics, and enhance common areas and landscaping as well as update the community room, laundry facilities, leasing office, fitness center and pools. The anticipated completion of the renovation is in the fall.
Brock Yaffe and Charles Halladay of HFF’s debt placement team secured a $41.89 million loan for the acquisition through Freddie Mac’s CME Program.
The securitized loan will be serviced by HFF through its Freddie Mac Program Plus®Seller/Servicer Program.
Jordan Robbins and Jeff Haag of HFF’s investment sales team represented the seller, Peak Capital Partners, from Provo, Utah, in the sale.
