29th Street Capital Acquires Apartments in Northwest Denver Suburb
Arvada, Colo. (September 24, 2015) – 29th Street Capital (29SC), a privately-held real estate investment and advisory firm, has acquired Village West, a 58-unit multifamily community in the sought-after Denver suburb of Arvada, Colorado. 29SC was able to source the acquisition off-market, avoiding the competitive bidding processes common in the Denver multifamily transactions market.
29SC plans to invest approximately $1.1 million (or $19,000 per unit) to improve Village West’s exterior, interiors and amenities, bringing the property in line with comparable apartment communities in the submarket.
“Village West is our second recent acquisition in the Denver metro, with others on the horizon as we continue to build our presence in Colorado,” said Todd Jaycox, Senior Vice President of Acquisitions for 29SC. “Our goal is to dramatically improve the property’s physical condition and offer an updated, yet affordable, rental option in a highly-desirable suburban location. Village West will benefit greatly from strategic improvements designed to modernize the community and increase its appeal.”
Village West is conveniently situated near many transportation options including Interstate 70 and a new light rail station scheduled to open in 2016. Located on a tree-lined street, adjacent to residential single-family homes, Village West is served by Arvada’s top-ranked school system. The overall neighborhood setting is very desirable for individuals and families seeking a high-quality suburban lifestyle.
29SC plans to improve the physical quality of Village West significantly. Apartments will receive new appliances, countertops, fixtures, lighting and flooring. They will also receive new energy-saving doors and windows. The pool and patio area will be improved, and a new dog park will be added.
Repairs are planned for roofs and balconies. Corridors will get new carpet, paint and hardware. Exterior work is expected to be finished in nine months. The work on the interiors will be ongoing, as leases expire and apartments become available. When complete, Village West will offer stylish renovated apartments boasting some of the largest floorplans in the area.
Extraordinary housing demand is creating a tight rental market in all of Denver, including the northwest suburbs. Denver is the 2nd fastest growing city in the U.S., according to 2014 Census Bureau data, with population growth of 1.5% since 2004. Affordable rental housing options are becoming scarce as the economy continues to expand. In 2014, the vacancy rate fell to a 14-year low of 3.9%, causing rents to surge in certain areas. Denver witnessed a year-over-year average market rent growth of 10.7% in 2014, and Arvada’s apartment market has performed in line or better than all of Denver in vacancy and rent growth over the last 12 month.
The transaction closed Sept. 21. A California-based investment group that is winding down its interests in Denver was the seller.
29th Street Capital has acquired 16 multifamily assets since September 2014, including two in the Denver area. It is actively pursuing additional multifamily opportunities throughout the United States. The firm will continue to target smaller value-add deals which are below the institutional radar, with the intention of offering its investors above market returns.
Formed in 2009, 29SC is a privately-held real estate investment and advisory firm that employs a value-added investment strategy on properties that are below the radar of institutional peers. 29SC’s current portfolio consists of over 5,800 units in 10 markets across the United States. Investments typically require approximately $2 to $10 million of equity per deal, and involve the acquisition or recapitalization of real estate assets, portfolios or platforms. Learn more about 29SC at www.29thstreetcapital.com.