Oak Coast Properties acquires Retreat at Water’s Edge
Oak Coast Properties continues its acquisition of metro Denver properties with its most recent purchase of the Retreat at Water’s Edge.
The Southern California-based investment firm, specializing in Class B and C apartment communities, paid $54.4 million for the 252-unit community. Oak Coast purchased the value-add community with plans to invest $2.2 million in renovations to improve the marketability of the units and amenities.
“Retreat at Water’s Edge is an ideal purchase for us as it’s a quality-built community with significant capex improvements made to it by the previous owner,” said Phil Nahas, managing partner of Oak Coast Properties. “The apartments are extremely well located and, once our additional improvements are made, the community will be even more attractive to renters in the area.”
Retreat at Water’s Edge was sold by Griffis/Blessing, which made $4.5 million in improvements to the community. Built in 1985, improvements included exterior paint, a fully renovated fitness center and pool deck, as well as interior renovations to 57% of the units. The average monthly rent per unit is $1,233, with renovated units achieving a $200 per month rent premium, according to Oak Coast.
Oak Coast Properties plans for the property include improvements to all remaining nonrenovated units, elevator repair work, landscaping, parking lot fixes and the addition of a pet washing station.
“Griffis/Blessing did a phenomenal job renovating about 50% of the community and all of the amenities,” said N e w m a r k ’ s Shane Ozment. “With Griffis/ Blessing ’ s investment upfront, Oak Coast Properties will be able to continue the proven in-unit value-add program and drive yield with every additional dollar spent.”
Ozment and Terrance Hunt of Newmark represented Griffis/ Blessing in the transaction.
Located at 9999 E. Yale Ave., Retreat at Water’s Edge features a mix of studio, one- and two-bedroom units that average 752 square feet. Apartments include a balcony or patio, dishwasher and refrigerator with select units featuring an electric fireplace, walk-in closets, in-unit washer and dryer, and wood burning fireplace.
Community amenities include underground parking, package delivery lockers, a business center and community room, outdoor pool and spa, clubhouse and water features. It also is near Cherry Creek Reservoir, the Highline Canal, Cherry Creek Trail, the Denver Tech Center, Belleview Promenade and the Village Shops at the Landmark.
JLL Capital Markets arranged a $38.15 million Freddie Mac Optigo loan for the purchase. JLL’s Charles Halladay, Brock Yaffe, Rick Salinas and Matt Cimino led the financing.
Echelon Property Group will manage the community.
The acquisition of Retreat at Water’s Edge follows Oak Coast’s purchase in October of the ArtWalk Apartments at City Center in Englewood for $123.5 million. Oak Coast’s Denver portfolio totals more than 4,200 units, including properties such as Aurora Hills, Artisan, The Richfield, One Dartmouth Place and St. Moritz.
Featured in the December 16, 2020-January, 5, 2021, issue of the CREJ