TruAmerica, Investcorp Go Cherry-Picking
- Oct 01, 2015
By Ioana Neamt, Associate Editor
Two out-of-state investors have landed a major apartment deal in the Mile-High City. A joint venture of TruAmerica and Bahrain-based Investcorp shelled out $71 million for a 561-unit community in the Cherry Creek neighborhood. The acquisition represents TruAmerica’s third venture with Investcorp and expands the Los Angeles-based company’s holdings in Denver to more than 2,200 units.
“As we’ve done elsewhere through this partnership, we expect to bring significant upgrade capital to a property which already boasts a strong occupancy history and an excellent location in an improving submarket,” Brian Kelley, principal in Investcorp’s Real Estate group, said in a statement.
Located at 5001 E. Mississippi Ave., the 41-year-old community is managed by Greystar and features 441 one-bedroom and 120 two-bedroom units on a 14-acre site. The nine-building Cherry Creek Club community incorporates amenities such as 916 parking spaces, a private lake and lakeside pool, fitness center, clubhouse and volleyball courts. TruAmerica will complete the renovation started by the previous owner, Weidner Investment Services, and will also launch a multimillion-dollar upgrade of the property’s units.
A key to the deal was a $53 million loan placed with Freddie Mac, according to data from Yardi Matrix. The ten-year, floating-rate financing features five years of interest-only, and was secured by Brian Eisendrath, Annie Rice, and Brandon Smith of CBRE Capital Markets. David Potarf, Dan Woodward, and Matt Barnett of CBRE’s Denver office represented both buyer and seller. The $71 million price tag is equivalent to $217 per square foot.
Image courtesy of TruAmerica