Minneapolis-based IRET acquired the Lugano Cherry Creek apartment community – its latest purchase in the metro Denver market.
The real estate company focused on the ownership, management, acquisition, redevelopment and development of apartment communities paid $99.25 million, or $302,591 per unit, for the 328-unit community at 9601 E. Iliff Ave. in Denver.
Constructed in 2010, the five-story wrap building includes 13,262 square feet of retail space. “This is a rare opportunity to provide slight modifications to the well-constructed asset that even now features large units with modern touches and full amenities,” according to Terrance Hunt of Newmark Knight Frank Multifamily. “You can count on one hand the amount of apartment properties built in 2010 for metro Denver, therefore, this is a unique value-add for an investor.”
Hunt, alongside Newmark Knight Frank Multifamily’s Shane Ozment, represented Toronto based Brass Enterprises in the sale. Brass Enterprises is a Canadian private investment group with multifamily assets in high growth markets throughout the United States. There were more than 10 offers on Lugano Cherry Creek.
“Our purchase of Lugano is a continuation of our strategic growth initiatives in Denver. With its large units, wrap construction, two structured parking garages and outdoor green space, Lugano is well-positioned in its submarket,” commented IRET Senior Vice President Grant Campbell. “Through implementation of select value-add and operational initiatives, we will be able to enhance the resident experience and position our organization for long-term growth potential.”
Lugano Cherry Creek comprises one-, two- and three-bedroom units with 9-foot ceilings, and a patio or balcony for every unit. Select units include granite countertops, full-size washers/dryers and cherry cabinetry.
At the time of the sale, the residential portion was 97% occupied.
Community amenities at Lugano Cherry Creek include an outdoor resort-style swimming pool and spa with heated deck, 24-hour fitness center, 4.5-acre private park, outdoor lounge with a fire pit and two structured parking garages. Lugano Cherry Creek also boasts strong demographics, surrounding recreation, nearby amenities, and easy access to light rail and multiple major employment hubs, according to Newmark.
“Lugano Cherry Creek is surrounded by several of metro Denver’s largest employment centers, and the property feeds into the top-rated Cherry Creek School District,” said Ozment.
The buyer is expected to do a light value-add to improve common area and unit finishes that will compete with brand-new assets.