AURORA, CO-E2M Strategic Fund, LP, a private equity fund of Dallas-based E2M Partners, in partnership with Wood Partners, has purchased Del Arte Lofts & Flats.
The property is a 351-unit class B multifamily community in the Denver suburb of Aurora. The investment is the seventh portfolio purchase for E2M Strategic Fund, bringing total assets under management to more than $160 million.
Launched in late 2011, the E2M Strategic Fund, the fourth private equity fund of E2M Partners, is seeking to raise $350 million in equity with $89 million in commitments secured. E2M Partners anticipates closing the fund by year-end 2013. The fund targets multifamily, industrial, hospitality, senior living and retail properties in strategic markets with strong population and job growth. It emphasizes investing in cash flowing assets below replacement cost, with the goal to add value through a comprehensive repositioning strategy.
“The Denver acquisition complements our strategy of investing in growing markets with solid market fundamentals,” said Bill Daves, president and CEO of E2M Partners. “A key element of our strategy is to invest with best-in-class operating partners who have proven track records in properly repositioning properties through comprehensive business plans. One of four multifamily investments, the Denver property is well-located and can be repositioned as an exceptional rental value in a market that is experiencing solid rent growth.”
The Fund acquired the Del Arte multifamily community with Wood Partners, a national multifamily developer and owner. Wood Partners will oversee the property renovations. Riverstone Residential Group will manage Del Arte Lofts & Flats.
“Wood Partners has a strong track record of improving multifamily communities, not only in the Denver area but across the United States,” said Bob Stone, E2M vice president. “They are the ideal partner on this venture because they know the market and have successfully invested there.”
Del Arte Lofts & Flats, located at 151 S. Joliet Circle in Aurora, is in a prime location near public transportation and only minutes from Interstate 225 and Denver International Airport. The partnership plans to make improvements, including upgraded kitchens and washer and dryers in various units, exterior paint throughout the property, and landscape and patio upgrades.
E2M Strategic Fund’s portfolio includes three additional multifamily assets located in Oklahoma, Minnesota and Texas. The assets include the 400-unit Cambridge Landing Apartments in Oklahoma City; the 320-unit Southwind Village Apartments in Burnsville, MN.; and the 427-unit Chateau Dijon in Houston. In addition to these properties, the strategic fund owns a hotel and 4.2 million square feet of industrial space.