Granite Capital Group has acquired a townhome-style apartment community in Fort Collins for $27.8 million.
Granite paid a record $264,909 per unit for the 105-unit Brooklyn Park Rowhouses, which it will rebrand Rigden Farms Townhomes. The property is located at 2758 Iowa Drive and is Granite Capital’s first acquisition in Fort Collins.
“Fort Collins is a wonderful community to raise a family, pursue an exciting career or to retire. Its economy is strong, diverse and attracts professionals from around the country. We see Rigden Farms as being in a prime location adjacent to a King Soopers-anchored retail center and a short distance to the downtown area, so shopping and restaurants are within easy walking distance,” Bruce Savett, GCG founder and principal, said in a statement.
Rigden Farms Townhomes was 100 percent occupied at the time of the sale. Granite Capital plans to upgrade unit interiors as they become available. Upgrades will include quartz countertops, refinished hardwood floors, new lighting and plumbing fixtures, and new kitchen cabinets.
“Our goal in all our projects is to build and operate housing that feels like a home rather than apartment living,” said Savett.
The property consists of 12 Class A buildings that were built in 2007 and 2008. It includes a mix of two- and three-bedroom units with two or three baths. Apartments have attached, full-sized two-car garages; private patios; gas fireplaces; walk-in closets; in-unit laundry rooms; 9-foot ceilings; and oak floors. They range from 1,120 to 1,407 square feet.
Granite Management Group will manage the property.
Projected annual cash flow for investors will start at more than 6 percent in Year One, increasing to more than 10 percent in Year Four, according to Granite Capital.
Jacob Steele and Nick Steele of Marcus & Millichap were the listing brokers. Brian Huff and Chris Ellis of Berkadia Commercial Mortgage arranged a Fannie Mae loan for the deal.
Rigden Farms is the latest of several GCG acquisitions in Colorado. The company purchased the recently completed Kipling Commons, a 48-unit residential development in Arvada, for $10.6 million last year. It also closed initial funding and is developing Fairways at Vista Ridge, a $41.5 million, 14.50-acre single-family rental community with 169 units in Erie’s Vista Ridge master-planned community.