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4/22/15
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In a record-setting Colorado apartment buy, Greensboro, NC-based Bell Partners has purchased Horizons at Rock Creek, a 1,206-unit, resort-style community in the town of Superior, for roughly $250 mil ($207k/unit). The asset was sold by Simpson Housing LLP.
ARA Newmark Executive Managing Directors Terrance Hunt and Shane Ozment, and Vice Chairmen Jeff Hawks and Doug Andrews, represented Simpson Housing LLP in the transaction. We’re told by ARA Newmark that this is the largest multifamily trade in Colorado history, and only three assets in the state have traded at a higher price. They are Downtown Denver’s Wells Fargo Center (aka the “Cash Register Building”), the Flatiron Crossing Mall in Broomfield, and Park Meadows Mall in Lone Tree.
Situated within the Interlocken submarket of Boulder County, one of the strongest multifamily areas in metro Denver, Horizons at Rock Creek was 96% occupied at the time of sale. The vacancy rate in the submarket during Q1 2015 was 3.69%, a 25% year-over-year decrease. Overall, the submarket absorbed nearly 1,500 units over the last four quarters; more than any other in metro Denver. The average rent increased 10% since the first quarter of 2014 to $1.41 per square foot.
“There were 20 competitive offers on the property given the market’s strong fundamentals,” said Ozment. “It’s a very strong showing for an offering that was quietly marketed to a targeted group of qualified investors. The seller was particularly sensitive to its management staff of 42 employees and wished not to disrupt the operations of the property with a widely publicized listing.”
Originally constructed in four phases from 1997-1999, the community spans 80 acres with a 13-acre lake and a 24k sf clubhouse. Amenities include a private beach with sports dock, beach volleyball court, four swimming pools, a stadium-style movie theater, indoor and outdoor basketball courts, racquetball courts and a full health club complete with a day spa, dry heat sauna and indoor and outdoor hot tubs.
“While it’s a remarkable asset, it was an opportune time for the seller to bring the property to market,” noted Hunt. “Simpson Housing, one of the nation’s largest privately-held residential developers and managers, now is focused on other metro Denver projects: the 165-unit Hartley Flats at 27th, the 114-unit Studio LoHi and the 354-unit Skyhouse, a partnership deal with Novare and Batson Cook Development, which are under construction.”
For Bell Partners, a privately held apartment investment and management company with nearly 70,000 units under management, the acquisition quickly establishes a significant multifamily presence in a new, prominent market with outstanding potential. The community has been renamed Bell Flatirons to leverage the well-established Bell brand and will benefit from Bell’s plans to review a potential renovation strategy for the property.
The property’s position within the Technology Corridor along the Denver-Boulder Turnpike (US-36), an area often referred to as the ‘Silicon Valley of the Rockies’ drove pricing, as well as its appeal to the area’s highly educated workforce. Neighboring Interlocken Business Park houses more the 11,700 employees, and notable technology firms such as Level 3 Communications (North American headquarters) and Oracle surround the property. Boulder, just 15 minutes away, boasts over 21,000 high-tech jobs with an average salary of $105,112.
Adjacent to The Horizons at Rock Creek, and connected to the property by a private pedestrian path, is the 1.5 msf Flatiron Crossing Shopping Center. Anchored by Nordstrom, Macy’s and Dillards, Flatiron Crossing comprises over 200 different stores, restaurants and entertainment venues.
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