A San Diego-based firm specializing in value-add real estate added its eighth Denver area apartment community with its acquisition of Verona Park Apartments.
Pathfinder Partners paid $18.3 million for the 119-unit community at 12000 E. Kansas Drive in Aurora.
“This represents a typical Pathfinder value-add apartment deal,” said Mitch Siegler, senior managing director of Pathfinder Partners LLC. “Located in one of our seven western U.S. target markets, the Denver metro area is experiencing strong population growth and solid job growth. The Aurora submarket is near major freeways and is convenient relative to key job centers (downtown, tech center, Denver International Airport) and also has an excellent (Cherry Creek) school district. The property has not been upgraded, providing an opportunity for us to add common area amenities and upgrade unit interiors.”
“Verona is appealing because of its location within the topper forming Cherry Creek school district and proximity to numerous outdoor activities, shops and major freeways,” added Lorne Polger, senior managing director of Pathfinder Partners. “The Aurora submarket enjoys high demand for apartments because of its central location between downtown Denver, the Denver Tech Center and Denver International Airport – three of Denver’s largest employment centers.”
Constructed in 1972, Verona Park comprises 62 one-bedroom, one-bathroom units and 57 two-bedroom, one-bathroom units averaging 881 square feet. The community, situated on 8.9 acres and comprising seven two-story buildings, includes amenities such as a heated indoor pool, resident clubhouse, business center, 24-hour fitness center, children’s playground area, barbecue area with covered picnic seating, on-site laundry facility and parking.
Pathfinder Partners plans to implement a comprehensive interior renovation program and perform upgrades to the landscape, hardscape and common area amenities.
Justin Hunt, Andy Hellman, Courtney Crowder and Katie Hufnagel of ARA Newmark represented the buyer and seller, who was not disclosed.
At the time of sale, Verona Park was 94 percent occupied.
Pathfinder has been active in Colorado with 16 acquisitions and 10 dispositions since 2009. The company has acquired four other Denver area properties during the past 18 months, including Quail Ridge (rebranded as “Hadley”); a 140-unit apartment community in Thornton; Shalom Park (rebranded as “V-Esprit”), a 100-unit active-adult community in Aurora; and Villa Del Prado/Chateau (rebranded as “Henley/Remy”), a two-property, 82-unit apartment community in Boulder.
“Millennials continue to pour into Denver. Notwithstanding the large amount of new supply the past few years, it’s not keeping pace with population growth and the vast majority of new supply is Class A. There remains a supply-demand imbalance for apartments, especially Class B,” added Siegler.
Pathfinder, founded by Siegler and Polger in 2006, acquired or sold $1 billion of properties since its inception. In addition to seeking opportunities to add value by providing liquidity to selling financial institutions, liquidating funds and fatigued owners, Pathfinder also seeks to maximize value through property enhancements, improvements in operations and marketing, property repositioning and other strategies.
Pathfinder’s target markets are Seattle; Portland, Oregon; Denver; Phoenix; San Diego/ Southern California; and, to a lesser extent, Las Vegas and Sacramento, California.