CASTLE ROCK, CO–Echo Ridge Holdings LLC of Salt Lake City has bought the 340-unit, class A Echo Ridge at Metzler Ranch multifamily rental community in the Denver area from Fairfield Residential LLC of Grand Prairie, TX. Public records show the sales price at $32.3 million, or $95,000 per unit.

Chicago-based Moran & Co. was the exclusive listing agent. David Martin, partner in charge of the firm’s Mountain States office, represented Fairfield Residential in the sale.

“The purchase of Echo Ridge represented a chance to obtain a class A asset at a price below replacement costs,” Martin says. “Further, with a strengthening job market and a limited amount of new apartment product being delivered in this affluent submarket, Echo Ridge offers a great amount of asset return potential.” Martin adds Echo Ridge was offered “free and clear” of any financing, allowing Echo Ridge Holdings to maximize its returns.

Echo Ridge’s 340 units range in size from 715 sf to 1,320 sf and include one-bedroom/one-bath, two-bedroom/two-bath and three-bedroom/two-bath units. The community is on 19 acres and contains a density ratio of 17.9 units per acre. Echo Ridge also contains 652 total parking spaces, including 60 direct-access garages and 42 detached garages, for a parking ratio of approximately 1.9 to 1.

Echo Ridge is in the 652-acre master-planned Metzler Ranch community in Castle Rock, a growing and upscale community in Douglas County. Its 340 units are in 15 buildings on a two-tiered site. Nine of the 15 buildings are on the site’s western perimeter.

“The property’s hillside orientation affords the most sought-after views within Castle Rock,” says Eric Hagevik of Fairfield Residential. “The western exposure allows for unobstructed views of the Rocky Mountains, while north- and south-facing homes also take advantage of partial views of the mountains.”

Echo Ridge is near the southern edge the southeast corridor, where most of the growth has occurred in the metro area over the past decade. The corridor employs more than 200,000 in more than 20,000 businesses. With more than 39 million sf of office space, the corridor is responsible for approximately 25% of the state’s economic output, and is a center for financial services, professional services, telecommunications and technology. Local employees include CH2M, First Data Corp. and Visa USA. The property is also a 15-minute drive from both the Denver Tech Center and the Park Meadows regional mall. Douglas County was the fastest growing county in the US from 1990 to 2000.

“And with the continued influx of jobs and office development, there is unlimited potential for future growth in the county, which will add even more strength to this asset,” Martin adds. But he notes there were only 1,588 permits issued for multifamily rental units in Denver, a 42.9% decrease from the same period a year earlier.

“The combination of constrained new construction, coupled with Denver’s strong population growth, rising single-family housing costs and ever-increasing multifamily construction costs bodes well for the ongoing success of rental rate growth,” Martin says.

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