California buyer acquires luxury apt. asset
A local development company sold a newly constructed Fort Collins apartment complex in a record-breaking sale.
California-based buyer Buchanan Street Partners purchased The Vibe, a 276-unit, luxury multifamily property at 3707 Le Fever Drive from seller and developer Milestone Development Group for $74 million. Terrance Hunt and Shane Ozment of Newmark Knight Frank represented the seller in the transaction. The buyer represented itself.
According to Hunt, the property was listed in 2019 and initially saw strong buyer interest. Hunt said when COVID-19 hit, interest in the property slowed, but despite this challenge, it ultimately sold in a record-breaking sale.
According to CoStar data, the property traded for the highest sales price of any apartment deal in Fort Collins history.
The property sold for $268,116 per unit, which also sets the record for the per-unit price for a 50-plus-unit apartment build ing in Fort Collins.
Hunt said the buyer assumed the sellers’ existing Department of Housing and Urban Development loan, avoiding a prepayment penalty of approximately $4.5 million, or $16,000 per unit. It secured a $49 million loan through PR Mortgage & Investment Corp. for the purchase, according to public records.
The Class A-plus apartment complex was built in 2018 and offers studio, one- and two-bedroom units in 12 buildings. Each unit is complete with plank flooring, a balcony, storage closets and a chef style kitchen with stainless steel appliances, granite countertops, tile backsplashes, a pantry and USB outlets. According to Hunt, the property was 91% occupied at the time of the sale.
The complex also offers luxury amenities, including a two-story clubhouse, a junior Olympic saltwater lap pool and pool deck with eight natural gas barbecues and seating, a spa, sauna and steam room, a seasonal car wash, a full-scale kitchen with beer taps, a pet wash, a bike wash, fitness and yoga studios with spin bikes, and a coffee shop. Due to its expansive amenity package, the property earned a National Green Building Standard Gold certification.
“The over-the-top amenities that Milestone delivered are the most thoughtful and robust package in the Northern Colorado market,” Ozment said.
Located minutes from the Harmony Business Corridor, residents are within walking distance of the largest concentration of employment in Northern Colorado. According to research done by Newmark Knight Frank, there are approximately 1,200 businesses and 23,500 jobs along the corridor. The property also sits on the Route 16 bus line, providing access to other offices, retail and entertainment amenities across Fort Collins.
The buyer adds the property to a portfolio of dozens of similar assets across multiple states, including California, Arizona and Colorado.
Featured in the October 7-20, 2020, issue of the CREJ