An Ohio-based real estate investment firm paid $106 million for a distinctive apartment community on the Denver-Boulder corridor.
“It’s a phenomenal asset – one of a kind,” said Shane Ozment of Newmark Knight Frank Multifamily, who handled the deal with Terrance Hunt, also of NKF Multifamily. “It is the most unique asset I’ve ever had the pleasure to work on.”
Terracina features a classic Italian-inspired design. Its 15,000-square-foot clubhouse has soaring ceilings and a resort-style swimming pool with fountains. A 620-space parking garage provides more than two parking spaces per unit.
The seller, Griffis Residential, acquired the property in 2010, before it was completed, and built 10 loft-style live/work units with large patios.
There are 14 “premium units” with stainless steel appliances and granite countertops, a few of which have plank flooring and draw a monthly rent premium of $200. “There’s easily a $150 to $200 premium” in updating additional units, said Ozment.
More than 30 tours were conducted as part of the marketing process. “People loved it,” Ozment said. “The value-add component on the units was tremendous.”
The Connor Group will spend approximately $4 million on upgrades and improvements to the property, including granite countertops, backsplashes, a new lighting package and ceiling fans. Terracina also will receive a new paint scheme, signage and outdoor amenities.
“We strategically purchase Class A apartments in Class A locations. Terracina’s location in the desirable submarket of Broomfield and its resident profile provide a great deal of upside potential,” said The Connor Group Managing Partner Larry Connor.
“This is our second acquisition in the market,” said Connor, whose company bought The Gardens at Cherry Creek in June 2017. “We will continue to grow our presence in Denver over the next two to three years as the right opportunities become available,” Connor said.
“We are excited about the long-term prospects of Terracina as an asset for numerous reasons – the quality of construction is exceptional,” added Alex Terauds, partner in charge of finance.
“The property also benefits from a prime location along the Denver-Boulder turnpike, where we’re seeing high-paying jobs and job growth in the technology field. This fits right into our strategy of expanding our presence in the market with great properties in great locations.”
Terracina consists of 56 percent one- and 1 ½-bedroom units and 44 percent two-bedroom apartments. Outdoor amenities include outdoor lounges with gas grills, a dog park and a bocce ball court.
The community was 95 percent occupied at the time of the sale. Included in the transaction was 3.96 acres of excess land that could accommodate additional units; however, The Connor Group currently has no plans for that land.
Terracina offers quick access to the Northwest Parkway and U.S. Highway 36, Flatiron Crossing and the Arista mixed-use development, and employers including Level 3 Communications, Oracle and Good Samaritan Medical Center. It also has sweeping mountain views, as well as has access to a park and trails.
Chris Cowan of Newmark Knight Frank’s Land Services team assisted with the transaction.
The Connor Group owns and operates more than $2.2 billion in multifamily assets in nine states, according to its website.