Archon Buys Colorado Apartment Portfolio for $90M

The transaction is reportedly Colorado's largest multi-family portfolio sale to a single buyer since 2006.

Archon Group LP, of Irving, Texas, has purchased a four-property, 1,164-unit multi-family portfolio in Colorado, the deal’s broker, Atlanta-based ARA, said  Monday. The seller, Five Mile Capital Partners LLC of  Stamford, Conn., received $90 million in the transaction, according to the Denver Business Journal.

The transaction, which ARA said closed on July 10, is reportedly Colorado’s  largest multi-family portfolio sale to a single buyer since 2006. ARA Colorado-based principals Terrance Hunt, Shane Ozment, Jeff Hawks and Doug Andrews, along with senior vice president Ken Greene and senior associate Kevin McKenna, represented Five Mile Capital.

Completed in two phases in 1988 and 1996, Waterfield Court is a 482-unit community in Aurora, Colo. The infill location in the southeast Denver metro area offers access to major employment centers including the DTC Business Corridor, Buckley Air Force Base and Denver International Airport.

Rolling Hills, in Castle Rock, Colo., between Denver and Colorado Springs, was built in 1987 and comprises 186 one- and two-bedroom units in 12 buildings. Whispering Hills, in Colorado Springs (pictured), consists of 216 apartment homes in that city’s northwest submarket.

Stone Ridge, with 280 apartment homes, is also in Colorado Springs, but is on the southwest side and closer to the city’s downtown. Its convenient access to Peterson Air Force Base and Fort Carson reportedly has allowed for significant rent growth in part because of troops returning from Afghanistan and Iraq. The Aurora and Colorado Springs properties, according to ARA, have substantial potential for a value-add strategy.

“Colorado has seen a flurry of new buyers entering the market over the past couple years,” Hunt told Commercial Property Executive. “Over 45 percent of all offers since 2011 have been from new buyers.”

“Several of these buyers state that they have funds allocated to purchase from 1,000 to 2,000 units in the market,” Hunt added. “A portfolio presents an opportunity to gain an instant footprint and ensure they can satisfy the goals of their equity. A new buyer would otherwise need to compete for one-off deals over a longer period of time to achieve an efficient mass.”