Grand Peaks added a “family” asset to its portfolio with its recent southeast Denver acquisition.
The Denver-headquartered firm, in partnership with Aegon Asset Management, paid $36 million, or $163,636 per unit, for Monaco South, a 220-unit community at 2280 S. Monaco Parkway in Denver.
“Monaco South offered investors the opportunity to acquire an asset with proven upside potential, centrally located between several employment hubs and retail options, in a strong multifamily market,” said Shane Ozment of Newmark Knight Frank Multifamily. “With only 15% of the units currently renovated, the new owner, Grand Peaks, plans a complete renovation of Monaco South for a significant increase to the asset’s bottom line.
“There was a lot of interest in the deal,” he added.
Ozment and NKF’s Terrance Hunt, Justin Hunt and Andy Hellman represented the seller, Capital Real Estate LLC, a Denver-based real estate investment firm specializing in the acquisition, management and disposition of multifamily real estate investments.
Constructed in 1971, Monaco South was built by Simpson Housing – a predecessor to Grand Peaks.
Grand Peaks comprises two vertically integrated companies founded by the Simpson family in 2003. Grand Peaks Property Management Inc. originally was created to oversee property management of the Simpson family’s private multifamily portfolio. Luke Simpson, CEO, and Nick Simpson, president, founded Grand Peaks Properties Inc. to continue the family legacy of acquiring, renovating and developing multifamily assets in core markets across the country.
Monaco South is the latest addition to its portfolio, which includes properties in Seattle; Portland, Oregon; Denver; Dallas; Fort Worth, Texas; Miami; and Fort Lauderdale, Florida.
Located at 2280 S. Monaco Parkway in Denver, Monaco South features a mix of one- and two-bedroom apartments averaging 744 square feet. Renovated units feature stainless steel appliances, new laminate flooring, modern lighting and brushed nickel fixtures. The property also includes vaulted ceilings on the top floor and, due to the four-story concrete construction of the buildings comprising Monaco South, renovations could include any kind of floor application, further increasing its value, Ozment added.
Community amenities at Monaco South include two pools, a clubhouse, fitness center, playground, business center, elevators and covered parking. Additionally, the community is located in a “constantly evolving area” and adjacent to a long-vacant Kmart at Monaco and East Evans Avenue, which Forum Real Estate Group is planning to redevelop.
At the time of the sale, Monaco South was 97% occupied.
Aegon Real Assets US is the primary real assets investment center in the United States for Aegon Asset Management, a global investment manager with $386 billion in assets under management/advisement as of June 30.
