Pembrooke apartments sell for $163 million
A Salt Lake City-based real estate investment management firm added to its Colorado holdings with the highest-priced multifamily deal to close to date this year in the Denver metro area.
Bridge Investment Group paid $163 million, or $169,969 per unit, for Pembrooke on the Green. The 959-unit property was sold by Oak Coast Properties, which purchased the community in 2016 for $128.4 million.
“Pembrooke on the Green, one of the largest multifamily properties in Denver, offered investors a strong value-add opportunity,” said Terrance Hunt of Newmark Knight Frank. “Despite the challenges posed by COVID- 19, this transaction was extremely successful due to the collaboration, hard work and patience of all parties involved. The sale represents Oak Coast Properties’ continued success in the Denver multifamily investment marketplace.”
Hunt and NKF’s Shane Ozment represented Oak Coast in the sale of the community.
The buyer, who assumed the loan on Pembrooke on the Green, will continue the value-add improvements started by Oak Coast as well as add social amenities, according to Hunt. Oak Coast made $1.9 million in upgrades to the community – work that includes everything from signage and landscaping to mechanical and plumbing repairs.
Located at 10700 E. Dartmouth Ave., just north of the Interstate 225 and Interstate 25 junction, Pembrooke on the Green was built in phases from 1974 to 1980. The community comprises 37 three-story buildings with a mix of studio, one-bedroom and two-bedroom units.
Apartments include granite countertops, stainless steel appliances and hardwood floors with top-floor units featuring vaulted ceilings, skylights and fireplaces.
The community features a clubhouse, picnic and barbecue areas, a playground, business center, fitness center and two swimming pools.
At the time of Pembrooke on the Green’s sale, the property was 96% occupied and preleased at 99%.
Oak Coast does not plan for additional dispositions in the Denver marketplace, however, is looking for further acquisitions in the metro area.
“We purchased the community understanding it represented a premier investment opportunity in a city where demand for quality housing continues to exceed supply. As a strong cash-flowing asset, our investment in Pembrooke on the Green helped us realize a doubling of our equity during our ownership,” Phil Nahas, managing partner with Oak Coast Properties, said of the sale.
In addition to Pembrooke on the Green, Bridge Investment Group also owns the Bridges at 9 Mile Station, Esprit Cherry Creek and Liberty Creek apartments in the Denver metro area, as well as office properties at the Denver West Business Park and 400 S. Colorado Blvd., and several MorningStar senior living communities. Bridge Investment Group also owns senior apartments in Fort Collins and a multifamily community in Pueblo.
Featured in the October 7-20, 2020, issue of CREJ