Boston Capital Invests in Colorado Apartment Properties
- Feb 07, 2008
Boston Capital Real Estate Partners has wrapped up investments in two apartment projects in Colorado. Boston Capital has partnered with Trammell Crow Residential on the developments, which account for an aggregate 741 units.One of the Class A properties involved is the Alexan Broadway Station in Denver. The multi-family project will occupy a five-acre parcel Trammell Crow acquired late last year from Cherokee Denver and will feature 419 residences. The other property is Alexan Briargate Apartments, also in the construction phase, which will offer a total of 322 units in Colorado Springs. A garden-style community, Briargate’s apartments will be divided among eight low-rise structures. The Denver apartment market had a good year in 2007 and it is expected to continue to thrive in 2008, according to a report by real estate investment brokerage firm Marcus & Millichap. While a slowdown in the creation of new jobs will temper demand, the vacancy rate is on target to remain below the double-digits at a projected 7.8 percent this year. As for Colorado Springs, a report by the Colorado Springs Metropolitan Area Apartment Vacancy and Rent Survey shows the vacancy rate in the third quarter of 2007 was 8.6 percent, down from 11.3 percent during the third quarter of 2006. Neither Boston Capital’s total financial commitment, nor the construction cost for the apartment projects has been disclosed. However, the price tags on other Alexan projects offer some perspective. Trammell Crow is spending about $94 million to develop the 280-Unit Alexan Carlyle in Alexandria, Va., just outside of Washington, D.C. Additionally, the company is shelling out about $90 million to build the 294-Unit Alexan South Waterfront tower in Portland, and another $110 million for the development of the 592-unit Alexan 360 in Atlanta. Boston Capital’s investments in the Colorado properties represent the continuation of a fruitful relationship with Trammell Crow, as the two companies have teamed up on residential developments in the past. Projects announced last year include the 340-unit Alexan Palm Valley, a market-rate apartment community in the suburban Austin town of Round Rock; and the Phoenix area’s 492-unit Alexan Tolleson, a luxury rental community that will encompass flats, carriage houses and townhomes. All told Boston Capital has formed seven joint ventures with Trammell Crow. Boston-based Boston Capital Real Estate Partners is a provider of equity for the development of predominantly market-rate apartment properties. The company has invested in the purchase and development of 12,000 units in 14 states over its six-year history, and as of the first of the year, boasted a portfolio of acquired properties valued at over $1.4 billion. Headquartered in Atlanta, Trammell Crow Residential develops and acquires apartment and condominium communities in over 50 cites across the country.