An Atlanta-based multifamily investment and management firm added a third metro Denver community to its growing apartment portfolio.
Cortland Partners paid $101 million, or $229,545 per unit and $236.86 per square foot, for the Lakecrest at Gateway Park, a 440-unit apartment community in Denver.
Located at 4699 Kittredge St., the community is minutes from Denver International Airport, the Shops at Northfield Stapleton and light rail and has backyard access to a nature preserve and a 2-mile walking path.
“That submarket is really kind of on fire,” David Potarf of CBRE said of the sale of Lakecrest. “There is a terrific job story there with Panasonic, Gaylord, Amazon, Walmart and the airport. That north Denver story is as good as it’s ever been.”
Potarf, along with CBRE’s Dan Woodward and Matt Barnett, all members of the CBRE Capital Markets, Colorado Multifamily Investment Properties group, represented The Bascom Group in the sale of the asset.
“There was a lot of interest in the property with 15 to 16 offers,” Potarf added, noting the community presented a strong value-add opportunity to potential buyers that ranged from local to Chicagobased to West Coast, East Coast and foreign investors.
“The owner had done some good capital improvements in a small percentage of units, so there’s a lot of runway left on the value-add aspect.”
At the time of sale, Lakecrest at Gateway Park was around 96 percent occupied.
“Our acquisition of Lakecrest at Gateway Park is a reflection of our aggressive growth strategy in the broader Southwest region,” said Adam Hazlett, director of investments for Colorado and Arizona at Cortland Partners.
Lakecrest comprises one-, two- and three-bedroom layouts that average 969 sf. The community, constructed in 2001, also features lake views, an Olympic-size swimming pool and adjoining spa, outdoor barbecue areas, an executive business center, a 24-hour fitness center and sports court, for example.
Cortland plans to completely renovated 100 percent of the units with top-of-market finishes, added Hazlett. Work will include new custom cabinets, granite countertops and stainless steel appliances. The bathrooms also will undergo improvements designed to make them “stand apart” from anything that exists in the submarket, including modern fixtures, custom cabinets, granite countertops, modern tub surrounds, tile wainscoting and motion-activated LED toe-kick lighting.
Cortland also plans to renovate amenity areas, such as a renovation of the clubhouse, the pool area, a new state-of-the-art fitness center that will nearly double in size, the addition of a dog park and new indoor pet wash. Renovations are expected to start immediately.
“We’re excited about the opportunity to own an asset in a rapidly growing submarket,” said Hazlett, noting Cortland’s goal is to be a long-term corporate citizen in Denver. “The Gateway Park and Green Valley Ranch submarket is one of the top performing areas of Denver in terms of job growth and population growth. This area is underserved by Class A service-rich and amenity-rich multifamily communities.”
In addition to Lakecrest, Cortland Partners’ portfolio also includes two other metro Denver communities and one in Colorado Springs.
