San Francisco-based real estate investment firm Hamilton Zanze added to its Colorado portfolio with a $50 million acquisition in Broomfield.
The firm purchased the 216-unit Willow Run Village community at 12621 Zuni St. for $231,481 per unit, or $257 per square foot. The purchase represents the 14th property the firm purchased in Colorado and the eighth in the metro Denver area.
“Willow Run presents a true value-add opportunity,” said David Nelson, managing director of acquisitions for Hamilton Zanze. “We are planning an extensive interior renovation campaign, resulting in a strategically positioned asset in a fabulous location.”
Built in 1999, Willow Run Village underwent a recent renovation to 48 percent of its units by seller Griffis/ Blessing Inc. The buyer plans to not only update select units with new stainless steel appliances, upgraded hardware and lighting fixtures, faux wood flooring and new paint but also to improve common area amenities and enhance the package locker area as well as refresh the on-site dog park.
“Willow Run Village is a great example of what many multifamily investors are seeking in Denver. It’s a late-1990s-built, value-add opportunity located in an area experiencing impressive job and population growth in hand with increasingly restrictive development options,” said Matt Barnett, senior vice president, CBRE Capital Markets, Multifamily Investment Properties.
“I think the location and vintage are really the main selling points,” he continued, noting the property’s location between Boulder and Denver and surrounded by strong employment in Broomfield drew significant interest. “The popular late-1990s/early 2000 vintage combined with its location made it a popular offering.
“There is more capital available today for value add than any other multifamily strategy, which is resulting in heavy competition and strong pricing for properties like Willow Run,” added Barnett. Barnett, along with Dan Woodward and David Potarf of CBRE Capital Markets, Multifamily Investment Properties, represented the seller in the transaction. CBRE Capital Markets, Debt & Structured Finance arranged the financing.
Willow Run Village comprises one-, two- and three-bedroom units ranging from 859 to 1,248 sf. Apartments are situated in 10 two- and three-story residential buildings and include full-size washers and dryers, walk-in closets, private patios or balconies and modern cabinetry.
The community, located near the 128th Avenue on-ramp to Interstate 25, also is adjacent to a greenbelt for pedestrian and bicycle traffic, within walking distance of the Broomfield Commons Open Space and near the Orchard Town Center, St. Anthony North Medical Center and 4 miles from Interlocken and U.S. 36. It features a 24-hour fitness center, basketball court, clubhouse, dog park, playground, pool and hot tub.
At the time of sale, Willow Run Village was just over 92 percent leased.
“Griffis/Blessing purchased Willow Run in late 2012. We invested approximately $2.7 million in capital improvements to the property, which included refurbishing the building exteriors, remodeling the clubhouse and fitness center, enhancing the pool area and other shared amenities, and upgrading unit interiors. Willow Run was our standard value-add play,” Gary Winegar, president of investment services, Griffis/Blessing, said of the sale.
Mission Rock Residential will handle property management of the property.
As of the fourth quarter of 2017, Hamilton Zanze’s overall portfolio included 83 properties totaling 18,692 units across Arizona, Colorado, Georgia, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Virginia and Washington. In the metro Denver area, its assets include Diamond at Prospect, Belle Creek, Oxford Station and Vistas at Stony Creek.