X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the multifamily market, click here.)

AURORA, CO-Through its subsidiaries, Hamilton Zanze of San Francisco recently paid $45.25 million for two suburban apartment communities. The previous owners of both properties were companies created by Chicago-based Equity Residential, one of the nation’s largest apartment real estate investment trusts.

Through a company called Trails Aurora LLC, Hamilton Zanze paid $26.23 million, or $74,715 per unit, for the 351-unit Trails Aurora at 121 S. Joliet Circle. In the second deal, Ironwood Westminster LLC paid $19.03 million, or $84,181 per unit, for the 226-unit Ironwood at the Ranch Apartment at Westminster, 11705 Decatur St. Both of the communities were built in 1986. The Marcus & Millichap team of Dave Potarf and Dan Woodward handled both transactions.

The Westminster property was 94% to 95% occupied at the closing, while the Aurora development was 98% occupied, Potarf tells GlobeSt.com. “I would say the replacement cost is probably between $125,000 to $140,000 per unit,” Potarf tells GlobeSt.com. “To pay $85,000 per door or less for an ’80s project is pretty good. Mot that many of them trade. And you can’t replace them today at nearly the price.” He tells GlobeSt.com that the rents in the buildings average around 80 cents per sf.

Equity Residential didn’t develop the communities. “It bought them both in the early ’90s,” Potarf tells GlobeSt.com. “Their strategy seems to be to sell the older stuff and trade up to newer stuff. They’re still big believers in this market; they’re just trading up. They’ve bought a handful of newer assets recently.”

Hamilton Zanze is also bullish on the Denver-area apartment market, he says. ‘They’re one of the more active buyers in the market,” Potarf tells GlobeSt.com. “They recently closed on a deal in Brighton and have bought a project in Colorado Springs.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt. Apartments 2020Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.