Griffis/Blessing Inc. ended 2016 with a pair of multifamily investments totaling $85.3 million in the metro Denver market.
As part of its value-add strategy, the Colorado Springs-headquartered firm added to its portfolio with the acquisition of the Village at North Hills and Deer Crest apartments.
“Our attraction to these deals was that we like the location of both and they fit into what we do, which since 1985 has been valueadd deals. We thought these were both very good valueadd opportunities where we feel like we can add some value,” Gary Winegar, president of investment services at Griffis/Blessing, said of the acquisitions.
Located at 11450 Melody Drive in Northglenn, the 168-unit Village at North Hills sold for $30.3 million, or $180,357 per unit. Built in 1999, the Village at North Hills comprises one- and two-bedroom apartments that average 894 square feet and include in-unit washers and dryers. Select apartments offer mountain views and fireplaces. Community amenities include a swimming pool, fitness center, clubhouse and barbecue grills, as well as a location close to Interstate 25 and 12 miles north of downtown Denver.
Deer Crest, located at 2200 W. 10th Ave. in Broomfield, sold for $55 million, or $192,308 per unit. The 286 unit community, constructed in 1984, is situated on 14 acres midway between Boulder and Denver on U.S. Highway 36, near the Arista area, and is one of the few mid-1980s products in the market, noted Winegar. The one- and two-bedroom community features apartments that average 883 sf, some of which haven’t been upgraded or have been only “mildly” updated since construction, and amenities such as a bark park, seasonal pool and spa, fitness area and private patios/ balconies. Select apartment also feature detached garages and skylights.
At the time of their sales, the communities were 95 percent and 93 percent occupied, respectively.
“Both communities are in excellent locations, offering residents prime access to top-rated schools, retail venues and outdoor activities. The communities are also in close proximity to future light-rail lines, which appeal to renters and will create an increase in demand,” noted Winegar.
“Both communities offer strong opportunities for our value-add strategies, such as unit interior improvements, which will include plank flooring and new appliances,” continued Winegar.
“We also plan to update the pool areas with a more resort-style atmosphere and upgrade the fitness areas and equipment. These improvements will allow us to increase rents but still keep them below new product in the area.” “We have a proven track record for not only controlling costs with our on-staff, Class A general contractor to oversee capital renovations but also for streamlining on-site management and operations while improving the overall resident experience,” added William J. Hybl Jr., present and chief operating officer of Griffis/ Blessing.
CBRE’s David Potarf, Dan Woodward, Matt Barnett and Jake Young represented the Bascom Group, the seller of Village at North Hills. Fairfield Residential was represented in its sale of Deer Crest by ARA Newmark’s Jeff Hawks, Doug Andrews, Terrance Hunt and Shane Ozment.
Mortgages for both properties were arranged by Brady O’Donnell of CBRE.
