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COLORADO REAL ESTATE JOURNAL
— May 18-May 31, 2016
by John Rebchook
Investors Management Group
recently paid $23.8 million for the
186-unit Rolling Hills, the first
institutional-quality apartment
community to be built in Castle
Rock.
The community, at 1129 S. Eaton
Court, was built in 1987.
“There are only four apartment
developments in Castle Rock
with over 100 units,” said Shane
Ozment, who was part of the
ARA Newmark team that listed
and marketed the property.
Ozment and fellow ARANew-
mark team members Terrance
Hunt, Jeff Hawks and Doug
Andrews represented the seller,
Virtú Investments.
According to public records,
Virtúpaid$16.6million, or $89,247
per door, for the property in 2013.
Investors Management paid
$127,957 per unit.
Ozment notedRollingHillswas
built near the peak of a previous
building boom. The boom cra-
tered with the collapse of energy
prices and overbuilding, before
the Denver area economy recov-
ered in the early 1990s.
“I wasn’t around at the time,
but I think people looked at Castle
Rockmuch the same way they do
today,” Ozment said.
“It is a great place to live and a
submarket that is very convenient
to the tech center,” he said.
He noted that during rush hour,
Interstate 25 is bumper-to-bum-
per going north, all the way from
the tech center to 120thAvenue.
“But going from Castle Rock
to the tech center, you just zip
along,” he said.
One of the great things about
Rolling Hills is that it is close to
everything.
“I mean, Castle Rock is a small
town, even though there is a lot
of development around the major
interchanges,” Ozment said.
While some Castle Rock resi-
dents don’t like all of the develop-
ment underway or on the draw-
ing board, all of the new and
existing retail is a nice amenity for
Rolling Hill residents, he said.
“You are five minutes from the
outlet stores and the new retail
underway and you are five min-
utes fromdowntownCastle Rock,
which has this really cute down-
town,” Ozment said.
There also is a King Soopers
even closer to Rolling Hills, he
pointed out.
“You don’t have to get on I-25
to buy your groceries, which is
really nice,” Ozment said.
It also is close to the recently
opened 320-acre Phillip S. Miller
Park.
“That is a great park, with
things like a climbing wall and a
zip line,” Ozment said.
Some people who live in Castle
Rock work in Colorado Springs,
he noted.
“Rolling Hills is a great choice
for a household where one per-
son works in Colorado Springs
and the other in the tech center,”
he said.
The area also is known for its
schools, he said, which can be
another drawing card, he said.
RollingHills, as it name implies,
is based on top of a hill.
“It has fantastic views of the
mountains,” Ozment said.
“It’s also off the beaten path a
bit,” he said.
“The good news is that is real-
ly quiet. The downside is that it
doesn’t have quite the visibility it
would if it was right off I-25. It’s a
destination location.”
He said the ARA Newmark
team received more than 10 offers
for Rolling Hills.
“We would have received
even more, but there was a debt
assumption,” Ozment said.
The original amount of the loan
that needed to be assumed was
$12.3 million and carried an inter-
est rate of 4.84 percent.
A debt assumption automati-
cally removes some prospective
buyers from the equation, he said.
“A lot of investors are buying
yield,” Ozment said, and want to
get a new loan with two or three
years of interest only to maximize
the cash-on-cash return, he said.
The flipside is when a buyer
assumes the existing loan, there is
Multifamily
Shown is Rolling Hills, which recently sold for $23.8 million.
