If investors across the country are a little more nervous about multifamily these days — perhaps because their lenders are — that isn't the case in Denver, where out-of-staters are still looking for deals.
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“As one of the country’s top 20 MSAs with a current unemployment rate at 3.9%, well below the national average, we remain bullish on housing in Denver and will continue to pursue additional acquisition opportunities,” said Oak Coast Properties managing partner Phillip Nahas.
Recently L.A.-based Oak Coast Properties and locally based BMC Investments ponied up $40.5M for the 390-unit Timber Lodge Apartments in Thornton. Just nine miles north of Downtown Denver, the property represents one of the few communities in the submarket offering entry-level rents.
The deal is Oak Coast’s fifth acquisition in greater Denver and the fourth in partnership with BMC Investments. Oak Coast now has 2,785 units in the Denver area.
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According to Oak Coast Properties, the community is in an area exceeding 7% rent growth year-over-year every quarter since Q2 2013. Also, a number of jurisdictions in the northern Denver submarkets have moratoriums in place preventing future apartment development.
That, along with high utility tap costs, impact fees and some of Denver’s highest land prices, have created particularly high barriers to entry for new development in this part of Denver. No new market-rate communities of this type have been delivered within a two-mile radius of Timber Lodge Apartments in the last 13 years.
Find out more about the future of multifamily in Denver at our Denver Multifamily & Mixed-Use event at Halcyon Cherry Creek on Feb. 23 beginning at 7:30 a.m. with breakfast and schmoozing.
