Parkside represents the second acquisition of Colorado & Santa Fe's $100-million acquisition target for the end of the year. Earlier, it paid about $13.7 million, or $42,605 per unit, for the 32-unit Summit at Thornton building at West 88th Avenue and Grant Street, north of Denver.
"We have a strong preference for buying in our home state," says Marcel Arsenault, CEO and founder of Colorado & Santa Fe. He says his company plans "substantial capital improvements" in both the Summit at Thornton and Parkside. He expects the improvements, coupled with recovering market conditions, will "contribute to the significant improvement in the performance of both properties."
Arsenault says he is focused on buying communities along the Front Range with 100 to 500 units, priced between $10 million and $50 million. "Our buying focus is on value-added properties, ideally projects with high vacancies, high concessions or those that are hampered by high debt service," he explains. "Our first two major deals fit all these categories. We are sitting on considerable cash, so with our financial strength, we can also buy negative cash flow or bank-owned properties, and wait for the market to improve." Arsenault also notes that his team can complete its due diligence quickly and close for cash, "allowing for fast exits for sellers."
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