Magnolia Capital pays $124M for Northglenn apartments

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Magnolia Capital paid a reported $124 million, or $220,640 per unit, for Griffis North Metro, a 562-unit apartment community at 12255 N. Claude Court.

A Chicago-based buyer focused on multifamily assets across the United States added a Northglenn apartment community to its holdings.

Magnolia Capital paid a reported $124 million, or $220,640 per unit, for Griffis North Metro, a 562-unit apartment community at 12255 N. Claude Court, sold by Denver based multifamily investment and management firm Griffis Residential.

Renamed Haven 124 at Eastlake Station, the Class A apartment community constructed in 2001 is one of a handful of $100 millionplus apartment sales to close in the Denver metro area this year.

The property, located just a few blocks east of Interstate 25, also is near the soon-to-open Eastlake/124th light-rail station.

Haven 124 at Eastlake comprises 25 garden-style buildings featuring a variety of one-, two- and three-bedroom floor plans. Apartments include 9-foot ceilings, crown molding and in-unit washers and dryers. The community includes two swimming pools, a spa, 24-hour fitness center and yoga room, and business center.

Holliday Fenoglio Fowler LP arranged $80.6 million in financing for the acquisition. HFF worked on behalf of Magnolia Capital and its investment partner to place two separate seven-year, floating-rate loans with Freddie Mac’s Green Advantage Program.

The securitized loans will be serviced by HFF, a Freddie Mac multifamily approved seller/servicer for conventional loans.

The HFF debt placement team representing the developer included Managing Director Stephen Skok and Director Leon McBroom.

“Haven 124 represents Magnolia’s fourth multihousing investment in 2017,” said Skok. “The acquisition is reflective of Magnolia’s investment strategy, which entails investing in markets that have favorable supply and demand characteristics along with above-average population, economic and housing stock trends.”

“We are thrilled to have completed the acquisition of Haven 124 and are pleased to have worked with HFF on the financing,” added Max Peek, CEO and managing principal of Magnolia Capital. “We continue to seek out compelling value-add and core-plus multifamily investment opportunities within our target markets.”

The property was 96 percent leased at closing.

Magnolia Capital’s portfolio also includes properties in North Carolina and Georgia.

Griffis Residential purchased the property in June 2013 and saw a 54.5 percent appreciation in the asset when it sold the community.

“While we have enjoyed a good market during the hold period, nearly 20 percent of the value appreciation at Griffis North Metro was directly attributable to our value-creation initiatives,” said Griffis Co-CEO David Birnbaum. “Adding value in all market conditions is central to our investment strategy.”

The sale of the Northglenn property comes on the heels of the sale of the Gateway Park Apartments in Denver in late July. The firm is actively acquiring multifamily assets in target markets, including Denver, Seattle, Austin, Portland, Los Angeles, San Diego and the San Francisco Bay area.

No brokers were involved in the off-market sale.

Featured in CREJ’s September 20-October 3, 2017, issue

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