Continued confidence in Denver keeps Castle Lanterra Properties coming back.
The privately held real estate investment company expanded its Denver multifamily portfolio with the purchase of its fourth property in the market in the last 16 months.
The New York-based firm paid $38.5 million for The Ranch at Bear Creek, a 201-unit community at 3324 S. Field St. in Lakewood.
“We continue to be attracted by Denver’s positive economic outlook,” said CEO Elie Rieder. “The acquisition of Ranch at Bear Creek marks our second purchase in the city of Lakewood. This submarket is particularly compelling for us due to its high barriers to entry, its close proximity to major employment centers such as the Denver Federal Center and St. Anthony Hospital, as well as its accessibility to downtown Denver. Lakewood also boasts one of the highest-rated school districts in the state, resulting in a highly sought after mix of quality education, employment, health care, retail and recreation – all at an affordable price point.”
The Ranch at Bear Creek is situated in the consistently low vacancy and high-barrier-to-entry Lakewood submarket, noted Castle Lanterra.
“Half of the Ranch at Bear Creek’s unit count consists of large townhome units, which distinguishes it from other communities in the area,” added Jordan Robbins of Holliday Fenoglio Fowler LP. “This unique feature combined with very limited current and future apartment development in the submarket generated a great deal of interest from a large investor pool.”
Robbins, along with HFF’s Jeff Haag and Anna Stevens, represented the seller, Aukum Group.
The community, built in 1973, features 118 two- and three-bedroom townhomes, 54 two-bedroom units and 29 one-bedroom units with average square footages of 1,270 for the three-bedroom townhomes to 685 sf for one-bedroom units.
The Ranch at Bear Creek recently underwent significant capital improvements, including an updated pool area with two pools, new outdoor lounge with firepit, newly built fitness center, full renovation of the existing clubhouse and upgrades to 63 percent of the residential units. Other attractions include a spin and yoga room with fitness on demand and a recreation room.
Additionally, residents also have access to an abundance of recreational amenities in the surrounding area, such as Bear Creek Trail, Bear Creek Lake Regional Park, Chatfield State Park, Red Rocks Park and Amphitheatre and four top-rated golf courses within a 2-mile radius. The community also is near retail centers with tenants including Natural Grocers, Planet Fitness, Starbucks, Whole Foods, REI, Sam’s Club, Costco and Sprouts. At the time of its scale, The Ranch at Bear Creek was around 95 percent occupied.
With the acquisition, Castle Lanterra Properties’ portfolio totals more than 1,100 units in the Denver metro area.