DENVER, COLORADO (January 13, 2022) — Dave Martin, managing director and Brian Mooney, senior vice president in Northmarq’s Denver investment sales team, brokered the $141 million sale of 3300 Tamarac, a 564-unit apartment community located at 3300 S Tamarac Drive in Denver, Colorado. Northmarq represented the seller, Gelt, Inc. The buyer, San Diego-based MG Properties Group, has indicated they intend to continue with an interior upgrade program.
“Buyer interest was strong with over 140 groups registering to underwrite a potential acquisition,” said Martin. “The value-add upside through unit renovations presented by the property fueled the attractiveness of the offering.”
Built in 1977 and situated on more than 25 acres, the 15-building pet-friendly property offers studio, oneand two-bedroom units ranging from 450 to 1,035 sq. ft. Gelt acquired the property in December 2015 for $74 million. The company added significant value to the community by enhancing operating efficiencies, renovating 129 units, and adding new features including Amazon lockers, a BBQ by the clubhouse, an extension and upgrade to the dog park, and an outdoor recreation area. Other community amenities include: Laundry facilities, maintenance on site, public transportation, elevator, business center, fitness center, pool and playground. Apartment amenities include: Ceiling fans, cable ready, fireplace, dishwasher, disposal, range, refrigerator, dining room, balcony and patio.
3300 Tamarac is strategically located near the intersection of 1-25 and 1-225 and is close to the northern border of the Denver South Business Corridor. The asset’s location also puts it within 10 to 20 minutes from some of the largest employment centers in Denver.
Earlier this month Gelt announced the $69 million acquisition of Willow Point Townhomes. The 117-unit, rental community is located at 8500 E. Mississippi Avenue in Denver, CO. The company currently owns approximately 2,500 units in seven communities in the Denver metro.
“Gelt is focused on acquiring large apartment properties in high-growth areas on a national basis,” said Josh Satin, Chief Investment Officer with Gelt. “This year, we are seeking to spend more than $400 million for well-maintained properties particularly in the Denver, Salt Lake City, Portland, and Southern California markets.”
“This asset was a home run investment for Gelt that surpassed our projections handily, and we are pleased that we were able provide our investors with a substantial equity multiple along with consistent cash flow from operations along the way,” said Keith Wasserman, Partner with Gelt. “In addition to our enhancements to the property which created value for area renters, since the property was acquired, the Denver market, has experienced unprecedented job and population growth, translating to rising rents and demand for quality assets like 3300 Tamarac.”
Jeff Harris Partner with Gelt added, “MG Properties is a seasoned operator who appreciated the asset and its marquee location, and has identified significant remaining value-add upside. We anticipate they will realize future success with the tremendous tailwinds the local Denver economy has been creating for multifamily fundamentals.”
Investment in multifamily properties in Denver continued to trend higher in the later parts of last year. Activity in the third and fourth quarter of 2021 doubled levels from the same period one year ago. The increased investor demand has caused prices to spike and cap rates to compress below 4 percent. Read more about Denver Multifamily Market.