TruAmerica, Capri Capital Buy in Denver
- Dec 18, 2015
TruAmerica Multifamily and Capri Capital Partners have snapped up a brand new asset in Denver’s thriving multifamily market. The partners recently acquired the 362-unit Veranda Highpointe Apartments from the property’s developer, Forum Real Estate Group. The price tag: $105 million.
Carrying the address of 6342 E. Girard Pl., Veranda sits within close proximity of downtown Denver. The Class A apartment community made its debut in 2014, offering a resort-style atmosphere as well as 41,000 square feet of retail space. The asset fits perfectly with TruAmerica’s strategy of acquiring properties for the purpose of providing high-quality accommodations at affordable rents. And the company’s target audience is alive and well.
“Millennials make up approximately 40 percent of the Denver workforce and population, yet many have been priced out of most of the urban areas where young urban professionals typically would like to live,” TruAmerica Senior Managing Director of Acquisition and Investor Relations Noah E. Hochman, said in a prepared statement. “This was an opportunity to acquire a high quality asset in an in-fill location that was built and priced to appeal to Denver’s largest demographic.”
Overall, apartment demand in Denver remains strong. The vacancy rate, though rising due to an onslaught of new deliveries, was an enviable 4 percent in the third quarter, according to a report by real estate investment services firm Marcus & Millichap. Investors are certainly taking note. Transaction activity increased 13 percent year-over-year in the third quarter. “Solid job growth and continually rising rents means investors remain keen on the Denver market, while many owners realize they have a lot of equity and are cashing out,” according to the report.
Given the Denver apartment market’s numbers and desirable conditions, TruAmerica has good reason to bolster its holdings in the area. With the addition of Veranda, the multifamily investment firm now boasts a portfolio of 2,037 units in Denver.