Denver Multifamily Power Stretches Out to the Suburbs
Core urban apartments might get the glory in Denver, but suburban properties are doing well by their owners, too. Mission Rock Residential president Patricia Hutchison tells us how suburban properties compete for tenants.
Urban properties don't have all the cards. In terms of amenities such as parking and green space, most suburban properties outpace their city counterparts, Pat says. "They can also have larger floor plans that can provide more flexible living arrangements, such as a single resident who wants an office and a guest room." Pat (center) is snapped with Mission Rock Residential colleagues skiing in Breckenridge.
The lifestyle has its appeal, too. "Do you want to wake up to a quiet neighborhood and the smell of fresh-cut grass—or do you want to wake up to the noise of a busy downtown and a view of other high-rise properties?" she asks. Schools are also a consideration—in a good suburban district, the cost is a lot lower than the private schools in urban markets. Recently Mission Rock was tapped to manage the 171-unit Downtown Belmar Apartments in Lakewood by an affiliate of Starwood Capital Group. The company now manages over 94 multifamily properties and over 20,000 units.
For owners and investors, the suburban sizzle often comes in the form of value-add opportunities. Recently Oak Coast Properties and BMC Investments acquired the 584-unit Liberty Creek Apartments in Aurora for $65M, an asset that Oak Coast managing partner Phillip Nahas says is an example of a property in an economically diversified market with strong and sustained employment and wage growth. "There's room for bottom line growth through property enhancements and increased rents,” he notes.
Oak Coast plans to spend about $3M for a renovation and repositioning effort at Liberty Creek, which also offers suburban locational advantages, such as access to retail like the Aurora Town Center. Next year, the property will also enjoy proximity to a new I-225 Rail Line station. “It offers strong upside potential,” Phillip says.