One of the country’s most active multifamily investors continues to have an appetite for Denver area apartments.
Los Angeles-based TruAmerica Multifamily and the Magnolia Real Estate Fund paid $53 million for the 287-unit Fox Creek community in Thornton.
Fox Creek is the sixth multifamily investment in the Denver area for TruAmerica, which has acquired approximately 3,000 units in the past three years here. Fox Creek is the first investment for the newly launched McLean, Virginia-based Magnolia Real Estate Fund.
The value-add community, built in two phases in 1984 and 1999, comprises a mix of one-, two- and three-bedroom units in a low-density, parklike setting. The 19.5-acre property includes two resort-style swimming pools, a clubhouse with a 24-hour fitness center, playground, dog park, spa and bike shop.
“Fox Creek represents a true value-add opportunity as the majority of the units, which feature vaulted ceilings, fireplaces and full-size washers and dryers, have been largely untouched,” said Greg Campbell, senior managing director of acquisitions and dispositions for TruAmerica. “About a quarter of the units also have lofts, an attractive feature not found at other assets in the immediate area. At our cost basis, we can implement a comprehensive and thoughtful renovation plan that will allow Fox Creek to compete with newer properties in the area and still be affordable to working families.”
The new ownership will start with improvements to common areas, including the pools and pool decks, clubhouse, fitness center, signage and landscaping.
TruAmerica then plans to begin a custom interior renovation program beginning with vacant units and continuing as units turn over. The apartment upgrades will include all new stainless steel appliances, new bathroom countertops and cabinets, faux wood vinyl flooring in living areas, new paint and upgraded plumbing fixtures.
“The Fox Creek property presents an attractive opportunity to invest in a well-located asset at a discount to replacement cost in one of the most fundamentally sound rental markets in the nation,” said Magnolia Managing Partner David Kent. “Most importantly, in TruAmerica we have a partner with a successful track record of creating value and delivering appropriate risk-adjusted returns to its partners.”
Dave Potarf, Dan Woodward and Matt Barnett of CBRE represented the seller, Valhalla Holdings.
TruAmerica financed the acquisition through Freddie Mac’s select sponsor program, arranged by Brian Eisendrath’s Los Angeles-based CBRE team.
Located at 12220 Colorado Blvd., Fox Creek is within walking distance of retail amenities, nearby employment centers and the Eastlake rail station, which will serve as the northern extension of the Regional Transportation District’s commuter rail system.
