Colorado Real Estate Journal - April 5, 2017
The University of Northern Colorado achieved more than the asking price for a student housing complex it had owned since 1967. The buyers, a pair of Northern Colorado investment groups put together by the Schuman Cos., will continue operating the 98-unit University Apartments as student housing. The apartments are located two blocks from campus at 509 18th St., across the street from Jackson Field. They were listed for sale at $7.06 million and sold to Bears Village LLC and MMP Ventures LLC for $7.1 million. The cap rate was 6.5 percent. UNC’s board of trustees authorized the sale of the 76,150-square foot property last year. The university said even though enrollment is up, it can meet housing demand by accommodating more than 3,000 students in 16 other residence halls. The University Apartments buildings have some exterior deferred maintenance, and, “They thought that they could sell the asset and take some of that money and reinvest it to help more students,” said Phil Dankner, director of Greystone Apartment Group. According to the Greystone Unique Apartment Group, which handled the sale, the transaction was unique because it involved a partnership between the buyer and seller that extends beyond closing. Before going under contract, the university extensively interviewed the top two potential buyers to select the best fit and to make the transition as smooth as possible for students. Essentially full at the time of the sale, University Apartments was developed by the university. It consists of two-bedroom, one-bath units of 660 sf in seven walk-up buildings. There also is a fitness center, basketball court, student lounge, on-site laundry room and children’s playground. The site comprises five acres. “This sale offers a true reflection of the demand for Greeley multifamily investment opportunities,” said Dankner. “After marketing the asset for less than three weeks, the University of Northern Colorado received multiple offers. There continues to be little to no inventory for sale in the Greeley multifamily market, and the student housing segment has tightened up due to an increase in enrollment year over year at the university.” According to Dankner, who handled the deal with Greystone Unique’s Adam Riddle, the University Apartments is the first UNC-operated property the university ever sold and the only student housing community to trade in Greeley in the last 12 to 18 months. “Student housing properties of any size (more than 15 units) don’t trade very often, and when they do, it’s a frenzy because the university continues to grow and there’s always a need for student housing." Because there hasn’t been a lot of new multifamily construction, “There are a lot of people looking for housing, so that puts pressure on students,” he said, adding the buyer will have “no issues” keeping the property filled. The university said in a statement that it interviewed multiple national brokerage firms to represent it in the sale of University Apartments and selected Greystone Unique Apartment Group “because of their thorough approach and expertise in the market.” “Greystone Unique Apartment Group was able to achieve a favorable sales price with no surprises in the process,” it said. Other News Lincoln Hotel Apartments LLC bought a multifamily property at 419 and 421 E. Seventh St. in Loveland as part of a 1031 exchange. Marge Voight sold the property for $1.65 millon in an off market transaction. It consists of 10 apartment units, a house and storage units that are rented mostly to apartment residents. Located in downtown Loveland, the property has been well maintained and will continue to be operated as is by the new owner, said Jon Rue of CBRE’s Northern Colorado office. Rue handled both sides of the transaction with CBRE’s Mike Eyer and Julius Tabert. The sale was part of an exchange for the Lincoln Hotel Apartments in Loveland, which sold in October. Pinnacle Agricultural Holdings LLC leased the 26,159-sf first floor of a new office building at 1880 Fall River Road in Centerra. The company is relocating within the master-planned business park in Loveland. Cobey Wess of SVN/Denver Commercial-Northern Colorado Division represented the tenant. Ron Kuehl and Ashley Stiles of Realtec represented the owner, Centerra Office Tech 1 LLC.