DENVER-Advenir has acquired Advenir@Stapleton, formerly Aero Flats at Stapleton, a 420-unit class A apartment community located in the Denver submarket of Stapleton, for $49.1 million. The seller was Carmel Partners, who purchased and completely renovated the property in 2005.
Todd Linden, chief acquisition office of Advenir, tells GlobeSt.com that the greater Denver market will continue to be a primary target for Advenir in 2013. “Since June 2011, we have acquired 1,593 units with an appetite to grow our Denver portfolio to 3,000 units,” Linden says. “In 2012, metro Denver’s apartment fundamentals had their best year in more than a decade.”
Linden says that “Vacancy rates decreased to their lowest levels since 2000, which resulted in strong effective rent growth. By the end of the third quarter of 2012, effective rents in metro Denver increased 7.4% year-over-year, to $1.05 per square foot. There are a number of factors that are contributing to one of the nation’s top performing rental markets including high in-migration, a steadily growing economy, and organic population growth.”
In addition, Linden tells GlobeSt.com that “Denver’s workforce is very young” and currently attracts many 25 to 34 year olds. “In 2010, the median age fell to an average of 33.6 years in Denver, which is 10.7% lower than the national average of 37.2 years,” he says. “Approximately 41% of metro Denver’s population is under the age of 30, and this percentage is expected to increase over the next decade.”
According to Linden, Advenir at Stapleton offers high-end amenities and upgraded unit interiors that are attractive to that young professional renter base. “That ideal renter demographic, key location and purchase price significantly below replacement cost made this an ideal acquisition for us.”
In 2006 and 2007, the seller invested approximately $48,000 per unit to completely renovate the entire property with class-A finishes and amenities. The units include crown molding in the main rooms, nickel plated light fixtures throughout, stackable washers and dryers, new vinyl windows, and kitchens with cherry cabinetry, vinyl plank hardwood flooring, and stainless steel appliances. There is also a newly constructed clubhouse offering state-of-the-art amenities.
Advenir represented itself in the transaction. Doug Andrews and Jeff Hawks of ARA represented the seller.