A Carmel, Indiana-based buyer made its first Denver acquisition with the purchase of The Grammercy Apartment Homes.
BH Acquisitions LLC paid $25.8 million for the 156-unit community at 9600 E. Girard Ave. in Denver.
“The Grammercy is a well-maintained property located within a core Denver neighborhood with an established and successful renovation program to build from,” said David Potarf of CBRE. “Its infill location provides convenient access to shopping, dining, entertainment and major employers in the DTC area.”
Potarf, along with CBRE’s Dan Woodward, Matthew Barnett and Jake Young, represented the seller of the community, which last sold in December 2016 for $16.6 million, according to public records.
The seller, FPA The Glen LLC, an affiliate of FPA Multifamily LLC, had rebranded The Grammercy as well as updated approximately two-thirds of the apartments with new appliances, flooring, fixtures, hardware, interior paint and resurfaced countertops.
“The sellers invested in significant capital improvements over the past several years, positioning The Grammercy to compete at a high level for years to come,” said Young.
Additionally, “The sellers left enough on the bone for the next guy to finish it up,” added Potarf, noting that the community saw a lot of offers and a lot of tours.
Recent capital improvements included remodeling the clubhouse, a new fitness center and playground equipment, improved landscaping and irrigation, and common-area and system upgrades. The community also features an outdoor pool and deck, laundry facilities, reserved parking and a parcel packaging system.
Built in 1974, the community comprises studio, one- and two-bedroom units across 13 rental buildings on 5.33 acres. At the time of sale, it was 97 percent occupied and stays consistently occupied, noted Potarf, as the community has strong visibility at the northwest corner of East Hampden Avenue and South Dayton Street. The Grammercy is located across the street from the Hampden Shopping Plaza and Wells Shopping Plaza while Hampden Heights Park, the Cherry Creek Trail and the Dayton light-rail station also are within walking distance.
The sale of The Grammercy at more than $165,000 per unit also demonstrates the continued interest and strength of the Denver metro multifamily market, explained Potarf.
“The fact is all vintages are still popular and the prices keep going up,” he said. “This is ‘70s product closing at $250 a foot – it shows the strength of the market across the class spectrum. A, B or C are all still very popular. There are plenty of buyers for every vintage.”
