Milestone Apartments REIT to Acquire 358-Unit Canyon Chase Apartment Community
- Jul 25, 2013
Milestone Apartments REIT recently announced it has entered into an agreement to acquire the 358-unit Canyon Chase apartment community. Located in the Westminster submarket of Denver, Colorado, the garden style multifamily apartment community was built in 1986. The Toronto-based REIT acquired the property for a purchase price of $40.5 million, representing an estimated initial capitalization rate of 6.55 percent.
The property is owned at the moment by Milestone Real Estate Investors II, LP, an affiliate of The Milestone Group. The REIT has negotiated a seven-year fixed-term mortgage of around $22.3 million at an interest rate of 3.66 percent to fund the acquisition, with the balance of the purchase price to be funded by drawing on the REIT’s $50 million revolving credit facility. The acquisition of Canyon Chase, which is currently 96.6 percent occupied, is expected to close by the end of July.
Located at 400 West 123rd Avenue, Canyon Chase according to PropertyShark.com was previously owned by Tmg Westminster Arbors Ii Lp, which acquired the property in 2008 for $32.02 million from Ori Wexford Inc.
Situated on 20.5 acres, the property is conveniently situated close to several shopping, entertainment and dining options, as well as to several employment centers, including downtown Denver and Boulder, and transportation corridors.
“Canyon Chase is well located in the dynamic submarket of Westminster Colorado near downtown Denver and Boulder with strong employment and demographic trends. Current demand for well maintained and affordable apartments in this submarket is demonstrated by the high current and historical occupancy at Canyon Chase,” said Robert Landin, CEO of Milestone Apartments REIT. “The REIT has access to a pipeline of approximately 19,000 multifamily units that are managed by The Milestone Group, and held mostly in finite-life partnerships. This transaction demonstrates the value generation potential inherent in this pipeline and our commitment to the accretive growth of the REIT.”
Canyon Chase features numerous amenities including pet friendly social courtyards, a swimming pool with sundeck, heated spa, covered parking, resident clubhouse with full catering kitchen, business center, playscape park and additional storage spaces.
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Photo Courtesy of www.milestonerents.com