Oak Coast draws ArtWalk in $123.5 million purchase
A Southern California-based commercial real estate investor specializing in Class B and C multifamily properties purchased an Englewood transit oriented apartment community for $123.5 million.
Oak Coast Properties paid $281,963 per unit for the ArtWalk Apartments at City Center, a 438-unit community neighboring the Englewood light-rail station. It plans a $4.4 million renovation as part of a “continued community value-add investment strategy” aimed at enhancing the apartment and unit amenities.
“ArtWalk Apartments is an exceptional community that offers renters a value-oriented alternative to options in central Denver, where prices are much higher,” said Phil Nahas, managing partner of Oak Coast Properties. “The quality and location of this asset, in a supply constrained submarket, make it an attractive acquisition for us.”
Constructed in 2001, the mixed-use community also includes 15,329 square feet of street-level retail space and amenities. In addition to being directly adjacent to the Regional Transportation District’s Englewood Station, the property is near Swedish Medical Center, Craig Hospital, Porter Adventist Hospital and the University of Denver.
At the time of sale, the apartments, were 95% occupied. Apartments, which average 919 sf, comprise a mix of one-, two- and three-bedroom units. Community amenities include an on-site business center, conference room and cyber café, amenitized clubhouse, swimming pool and spa, courtyard with patio seating, 24-hour fitness center with yoga studio and an art studio.
ArtWalk had undergone a renovation to a portion of the units by seller CBRE Global Investors. Oak Coast Properties plans to complete work to the balance of the units as well as upgrade community amenities with the addition of secure delivery package lockers, dog park, pet washing station as well as some adjustments to existing amenities.
“We plan to complete the prior owner’s upgrade plans to optimize the marketability of all units within the community,” added Nahas. “Apartments are harder to come by in this submarket, while employment and the population both continue to trend upward, thus quality housing options are needed here.” Jordan Robbins and Pamela Koster, managing directors with JLL, represented CBRE Global Investors. JLL Capital Markets also arranged an approximately $87 million Freddie Mac Optigo loan for the acquisition. Financing was led by JLL’s Charles Halladay, Brock Yaffe, Rick Salinas and Matt Cimino.
“ArtWalk’s appeal is its location, which feels suburban but still offers a number of urban attributes such as walkability to grocery shopping, restaurants and other local retail,” Robbins stated in a release. “These factors, coupled with the strength of the Denver market over the past several months, led to exceptional interest in this asset from potential buyers.”
Echelon Property Group will manage ArtWalk.
With the purchase of the ArtWalk Apartments at City Center, Oak Coast Properties’ multifamily portfolio exceeds 4,608 units under management and more than $1 billion in valuation. Other properties it owns in the Denver metro marketplace include the Aspen Park, Aurora Hills, Berkeley at Regis, Ivy Cross I, II and III, Richfield, St. Moritz and Villas on 76th communities.
Featured in the November 4-17, 2020, issue of CREJ