There were double-digit offers for a Fort Collins apartment community that sold to a 1031 exchange buyer for $47 million.
Arbors at Sweetgrass drew “a ton” of investor interest from private investors and institutionally backed funds, according to CBRE Executive Vice President David Potarf.
OpenPath Investments, a California company focused on “socially responsible” investments, bought the 259-unit community from Summit Management Services, which had renovated about a quarter of the units.
“The owner had done some nice renovations to the units, and it was being well received,” said Potarf, noting the kitchen areas were opened up as part of the renovations. “There’s upside to renovate three-quarters of the property still, so it was a good deal for the seller and the buyer,” he said.
Arbors at Sweetgrass is situated on nearly 25 acres at 1720 Kirkwood Drive, off East Prospect and South Timberline roads and just south of Edora Park. It’s a “really nice property” with a strong location and broad mix of tenants, said Potarf. Occupancy was 97 percent at the time of closing.
Built in 1987, Arbors at Sweetgrass consists of 85 one-bedroom, one-bath apartments and 174 two-bedroom, two-bath units. The average unit size is 829 square feet.
Amenities include washers and dryers, private patios and balconies, spacious closets, and some units have fireplaces. The community has a clubhouse with a 24/7 fitness facility and swimming pool, along with landscaped grounds that offer walking trails, tennis and basketball courts and a barbecue/ picnic area.
Arbors at Sweetgrass sold at a per-unit price of $181,467, or $219 per sf. The buyer assumed the seller’s loan on the property.
Potarf handled the sale with CBRE’s Dan Woodward, Jake Young and Matt Barnett.
OpenPath Investments owns apartment communities in Arizona, Utah, Texas and other Western states. Its Colorado properties include Cheyenne Crest and Cheyenne Crossing in Colorado Springs. OpenPath’s “Urban Villages” program encourages apartment communities to function like traditional communities.
