Castle Lanterra Properties (CLP) has expanded its multifamily portfolio with the acquisition of its third property in the Denver metro area within the past year, which brings its total unit count to over 900 in the Denver MSA. The New York-based firm purchased the 280-unit Sunset Ridge Townhomes in Westminster, part of the consistently low vacancy and high rent growth Arvada submarket. ARA Newmark represented the seller, Dallas, TX-based real estate company WillMax Capital Management.
Located at 8300 Sheridan Boulevard, Sunset Ridge is within a twenty-minute drive of both downtown Denver and Boulder. Built in 1972, the community consists of 140 two-bedroom units and 140 three-bedroom townhome-style units, all of which are configured as tri-level townhomes with private outdoor entrances. Average square footage is 959 for two-bedroom units and 1,166 for the three-bedroom units, not including approximately 450 square feet of additional space in the basement – a rarity in the metro Denver apartment market. The property has maintained 95 percent occupancy through the second quarter of 2017, consistent with strong rent growth in the Arvada submarket.
“The long-term outlook of this submarket is very promising,” noted CEO Elie Rieder. “We were attracted by its positive supply/demand dynamics, high standard of living, and easy access to two major employment centers in Boulder and Denver. The metro area is poised to grow to 4 million residents – a 30 percent gain over the next 25 years. Denver is quickly evolving as a business hub for a multitude of financial, energy, legal services and engineering-based companies, and job growth throughout the metro area is outpacing the national average. As a result, there is a strong demand for high quality rental housing at an affordable price-point.”
Sunset Ridge features an array of amenities including an updated clubhouse, Wi-Fi Café, lounge area and fireplace, zero entry swimming pool, barbeque grills, large dog park, and new parking lot and playground. The townhomes are equipped with private entrances and full basements in each unit, full-size washer and dryer connections, gas heating, air conditioning, all electric kitchens and extra storage. Select units feature black appliances, updated cabinets and countertops, wood plank flooring and upgraded lighting packages.
“In the past two years, interior renovations were completed in nearly 80 percent of the 36 buildings along with upgrades to the clubhouse, exteriors, landscaping, and existing amenities” said Austin Alexander, CLP Managing Director. “Our plan is to continue the unit renovation program as units naturally turn over, and we will also aim to add value by finishing the basements, which will add nearly 50 percent of livable space to each unit at minimal cost. Other upgrades include the installation of washer/dryers in each unit, which is a high demand amenity in this submarket”
Sunset Ridge’s prime location offers proximity to world-class entertainment, hospitality and dining. The community is minutes from the RTD Northwest Rail Line at Westminster Station, which provides direct service to downtown Denver and Boulder. Residents can easily access major roadways such as the Denver-Boulder Turnpike (US-36), which connects to the region’s Technology Corridor, often referred to as the “Silicon Valley of the Rockies.”
Boulder, which was recently ranked number one in SmartAsset.com’s “Best Housing Markets for Growth and Stability,” is just 20 minutes north on US-36. This hub for notable technology firms and innovative companies is a major employment center with over 123,000 workers. Google is slated to open their Boulder campus in December 2017, which will add 1,500 new jobs.
Recreational opportunities include a regional park offering waterskiing, paddle boarding, kayaking, fishing, cycling and golfing. Nearby Boulder County boasts 43,000 acres of open space with 120 miles of hiking and biking trails.
Sunset Ridge also is in proximity to the former Westminster Mall, a 105-acre master-planned redevelopment site that is being transformed into an urban-style mix of 1.125 million square feet of retail space and 1 million square feet of office space. Westminster will become home to the Front Range’s newest skyline, with views of Mount Evans, Longs Peak, Downtown Denver and the Westminster Bell Tower.
Formed in 2009, Castle Lanterra Properties is a privately held real estate investment company focused on the acquisition and management of quality income producing multifamily properties within strategic growth markets throughout the United States. Through a rigorous value-enhancement program that includes thoughtful renovations, operational improvements and ancillary income development, CLP aims to reposition each asset with the goal of maximizing NOI, elevating its competitive position within the market, and providing attractive risk-adjusted returns for its investment partners. Castle Lanterra Properties currently owns and manages a portfolio comprised of 9,500 units and a value in excess of $2.0 billion.