Colorado Real Estate Journal - June 4, 2014

Rondell pays $36.7 million for Winridge

by John Rebchook

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Rondell Homes, a real estate investment company based in Placentia, Calif., paid $36.7 million for the 364-unit Winridge Apartments and Townhomes in Aurora.

The sales price equates to $95,271 per unit and $114.29 per square foot.

ARA Colorado’s team of Terrance Hunt, Shane Ozment, Jeff Hawks andDoug Andrews represented the seller, RREEF Property Trust, based in suburban Chicago.

Rondell Homes was represented by Jack Mason of Mason Properties Inc. of Colorado Springs.

The property was 94 percent occupied at the time of closing.

“Winridge is a great value-add opportunity located in Aurora,” Hunt said “The seller took care of many of the major capital expenses, enabling the buyer to focus on the unit interiors, which will really help in pushing rents.” Winridge is at 2075 S.

Paris Way, near South Peoria Street and East Evans Avenue.

That is a great location, Hunt said.

“The property offers a great family oriented unit mix with the perk of being located within the Cherry Creek School District and just a few minutes from the Nine Mile light-rail station,” Hunt said.

Rondell Homes sees both short-term and longterm potential in the community, he said.

“The buyer intends to own the property for the long term while capitalizing on the immediate rent growth bump produced by finishing the unit upgrades,” Hunt said.

Constructed in 1986, Winridge provides easy access to the Denver Tech Center area, the Fitzsimons Life Science District, Lowry and Cherry Creek, according to Hunt.

Upon completion of the I-225 light-rail corridor in 2016, the property also will have light-rail access northbound to Fitzsimons as well as Denver International Airport, he added.

The average apartment unit is 834 sf. Winridge also has 60 townhomestyle units that average 1,026 sf.

Rondell, in the DenverSycamore Hill apartments in Littleton.

“Until the Winridge purchase, they had not been active in the Denver area for a long time,” Hunt said.

“Literally, I think it had been decades since they had bought anything here, although they have owned properties in the Colorado Springs market,” Hunt said.

He said Rondell made a good purchase with Winridge.

“It is hard to judge what it would cost you to replace an ‘80s asset, but to build it new would cost you $175,000 per unit,” Hunt said.

“Without question, they bought it far below replacement cost. Ever since they purchased it, prices have continued to go up.” He said there was a lot of interest from prospective buyers for Winridge.

“At the end of the day, Rondell Homes went after it very aggressively,” Hunt said.

“They really wanted it and were using their own money, so they came out on top.”

Other News

ColaMan RE Holdings LLC paid $1.3 million to Ronald Christensen for the 14-unit apartment building at 5510- 5520 S. Elati St. in Littleton.

The sales price equates to $92,857 per unit and $111.59 per square foot.

Scott Fetter with the Calamel Lewallen Team at Pinnacle Real Estate Advisors LLC worked with both the buyer and the seller.

The 11,650-sf building was built in 1963 “Though this property needs updating, the buyers aren't rushing to do so just yet,” according to Fetter.

“They plan to hold this building long term and are content to operate it in its current condition for the time being.

“This buyer owns property adjacent to the subject property, so it was an obvious move for them,” Fetter said.

“The seller named his price and we were able to move forward,” he said.

Lilifox Manor LLC paid $1.2 million, or $80,000 per unit and $118.79 per sf, to 4385 Hoyt Street LLC for the 15-unit Hoyt Street Apartments at 4385 Hoyt St. in Wheat Ridge.

The property was constructed in 1972.

Josh Newell, a senior adviser at Pinnacle Real Estate Advisors LLC, represented the buyer and the seller in the transaction.

Willie I Holdings LLC paid $950,000, or $95,000 per unit, for the 10-unit apartment building at 3401 Williams St. in Denver.

Jason Koch of the Unique Apartment Group represented the seller, 3401 Williams St.

LLC. The building was constructed in 1903 and sold at a 7.01 cap rate. Significant updates to the units and the mechanics attracted the first-time investors to this “up-and-coming area,” according to Koch.

Unique Apartment Group sold a four-unit apartment building at 1680 Adams St. in Denver for $715,000, or $178,750 per unit. It was purchased by an owner-occupant.

It was built in 1909 and sold for a 6 percent cap rate.

The Denver Fund LLC paid $658,000 to Great Day LLC for the 12-unit apartment building at 1438 Macon St. in Aurora.

The sales price equates to $54,863 per unit for the building, which was constructed in 1962. It sold for a 8.39 percent cap rate. It was a turnkey property with an upside in rents, according to Jason Koch of the Unique Apartment Group, who represented the seller in the transaction. The investor was attracted to what will be a strong cash-flowing asset in an improving area, he said.

Lamson Colorado LLC recently sold a six-unit apartment building in Littleton to a private investor for $570,000.

The price equates to $95,000 per unit and $79.21 per sf for the building at 5705 S. Pearl St.

The building, built in 1962, was only in average condition, said Scott Fetter with the Calame|Lewallen Team at Pinnacle Real Estate Advisors LLC, who represented the seller.

“This was an all-cash deal, a very quick close, and the perfect scenario for both buyer and seller,” Fetter said.

“Once these two parties were brought together, I just tried to stay out of the way.” Brooks Properties-Yukon LLC paid $498,000, or $83,000 per unit and $87.37 per sf, for a six-unit apartment building at 5925 Yukon Court in Arvada.

Josh Newell, senior adviser at Pinnacle Real Estate Advisors LLC, represented both sides in the transaction.
area, also owns the 50-unit