Newmark Multifamily announces the $177 million sale of a value-add portfolio made up of 1,023 units within three contiguous properties on 45 acres. The properties included Westwood Apartments, Woodhaven Apartments and Timberline Apartments and they were still owned and operated by the original developer prior to the sale. The assets are located within the premier Cherry Creek School District near the intersection of South Quebec Street, one of Denver’s main north-south thoroughfares, and East Yale Avenue.
Vice Chairmen Terrance Hunt and Shane Ozment represented an undisclosed seller in the deal which sold to Denver-based BMC Investments. The sale marked the largest number of units in a single trade and the largest multifamily transaction by dollar volume in metro Denver since the September 2016 sale of The Breakers, a deal which was also handled by the Newmark Multifamily institutional sales team of Hunt and Ozment.
“This was a phenomenal opportunity - the last of its kind in the Denver metro area - to purchase legacy assets with such multifaceted upside potential,” said Hunt. “Additionally, investors were offered the chance to establish a critical mass in an exceptional suburban location within the best school district in the metro area.”
The properties, which have not been updated since their original completion in the 1970s, feature well-configured floor plans with a blank canvas for a unit renovation program and substantial upside potential throughout common areas for reconfigurations and improvements.
“There is a lot of capital in the Denver metropolitan market and this offering was a rare opportunity to put a large amount of money to work,” noted Ozment. There are only three apartment communities in the metro area with over 1,000 units and this portfolio received a total of 13 offers throughout the bidding process.
Located in a strong multifamily submarket, where workforce housing is in high demand, the properties will benefit from the some of the greatest rent appreciation and lowest vacancy rates in the city.
The assets have direct access to the High Line Canal Trail, which connects to metro Denver’s 850-mile trail system. They also have excellent Light Rail access, located proximate to the Yale Station on the Southeast Rail Line, providing residents easy access to two of metro Denver’s major employment centers, the Denver Tech Center and downtown Denver.
“The assets have a very interesting history in Denver,” added Hunt. “The first phase of the portfolio which was built in 1973, and is now known as Woodhaven, was originally called the Latin Quarter and was the highest-end luxury property in Denver at the time of completion.”
Newmark (“Newmark”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, Newmark’s 16,000 professionals operate from approximately 430 offices on six continents. Newmark’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.
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