Evergreen Devco Inc. kicked off its value-add multifamily platform with its purchase of a pair of Denver apartments for nearly $70 million.
“We are excited about this new value-add platform and these two assets fit perfectly in our business plan,” said Tyler Carlson, managing principal of Evergreen. “With both properties located in strong submarkets with robust education, employment, transportation and retail amenities, these projects both feature opportunities to add value through physical upgrades and professional management coupled with enhanced marketing for high visibility leasing.”
Evergreen paid $55.58 million for Devon Square Apartments, a 252-unit apartment community at 1300 S. Willow St. in south Denver, in Arapahoe County.
The gated community features 12 rental buildings, a leasing office and a clubhouse. Devon Square comprises 124 one-bedroom, 124 two-bedroom and four townhome units. The community also includes detached garages, a swimming pool, fitness center, business center and a clubhouse.
Built in 2002, Devon Square is located within the Cherry Creek School District and is near the Denver Tech Center, Anschutz Medical Campus and downtown Denver. It was 92 percent occupied at the time of the sale.
Devon Square was sold in an off-market transaction by Furer Development. Matt Vandal of Sognare Partners represented Evergreen.
“With Devon Square offering large floor plans and attractive architecture, our plan is to upgrade the interior units and improve the community amenities to a level that is comparable to newer properties but at a slightly lower rent,” said Kris Vercauteren, vice president of apartment acquisitions for Evergreen.
Three miles to the east, Evergreen closed on the $13.95 million purchase of the Albion apartment portfolio.
The portfolio comprises six buildings and 98 units one block east of Colorado Boulevard and two blocks north of Interstate 25. The properties included in the purchase are located at 1520 S. Albion St., 1588 and 1594 S. Albion St., 4101 E. Iowa Ave., 1600 S. Albion St., and 1650 Albion St.
Built between 1957 and 1961, the Albion portfolio features a mix of six studio units, 66 one-bedroom units and 26 two-bedroom, one-bath units.
Scott L. Shwayder of Unique Properties Inc. brokered the sale of the Albion properties, where Evergreen will enhance the physical features of each building and improve the property management of the portfolio. The portfolio was sold by a limited liability company controlled by Mark Johnson and James Johnson.
The Albion properties are located near the Colorado Boulevard corridor, Cherry Creek North, the Denver Tech Center and downtown’s central business district.
Evergreen’s value-add platform targets multifamily projects that need improvement through physical upgrades and improved property management. The platform is focused to serve properties in growth markets, near major employment hubs, with convenient access to retail, transportation and schools. In Colorado, Evergreen is looking to buildings with more than 150 units but will continue adding smaller communities to the Albion portfolio, noted Vercauteren.
Evergreen, founded in 1974, specializes in retail and multifamily development, tenant rollouts, project and construction management, asset management, sustainable building and solving financing issues for various retailers and franchises. It has offices in Arizona, California, Colorado and Utah; is currently engaged in the development of more than 60 retail and apartment projects; and has completed more than 500 projects.