DB Capital Management Enters Denver Market with $16.2 MM Buy in West Wash Park
April 1, 2020
Multifamily investment firm DB Capital Management has closed the acquisition of Red Owl Apartments, a 46-unit community in Denver, CO for $16.2 million, marking the firm’s entry into the Denver market.
DB Capital Management plans to aggressively target multifamily acquisitions in Denver as it continually ranks as one of the best places to live in the U.S. and has been one of the top performing multifamily markets during the COVID-19 pandemic, according to DB Capital Management Co-founder and CEO Brennen Degner.
“We are targeting extensive growth in this market with a goal to own 1,000 units in the Denver metro area by the end of 2022,” said Degner, who was born and raised in Denver. “Red Owl is an award-winning asset in an exceptional location that we were able to acquire below replacement cost. We have the ability to increase revenue through hands-on property management and a focused renovation plan.”
Built in 2018, Red Owl Apartments is located at 90 S. Logan Street in West Wash Park, one Denver’s most livable and sought-after residential neighborhoods. West Wash Park is characterized by its eclectic mix of housing options as well as a wide variety of local restaurants, boutiques and parks. The approximately one-square mile neighborhood sits at the western gateway of its namesake 165-acre Washington Park, considered by locals to be Denver’s Central Park. It is also within a 10-minute drive of the city’s most popular shopping and business districts including Old South Pearl Street, Cherry Creek, Old South Gaylord Street and Downtown Denver.
DB Capital Management will rebrand the asset as Summit at Wash Park and will immediately begin a renovation that will include common area improvements, as well as interior and exterior upgrades to the studio, one-, two- and three-bedroom apartment homes as units roll. The improvements are aimed at driving desirability and tenant retention to support stable revenue growth, added Regional Vice President Darren Hulick who leads the Denver acquisition team.
“The current rents demonstrate a sizeable spread against new luxury product in the market and provide renters with an affordable, upscale option in one of Denver’s most desirable neighborhoods,” said Hulick.
The off-market transaction was arranged by Justin Hunt, Andy Hellman and Katie Hufnagel of Newmark Knight Frank, Colorado. David Treadwell of Newmark Knight Frank arranged the acquisition financing.
In addition to Denver, the firm is also targeting multifamily investments in Austin, Salt Lake City, and Portland.
Source: Multifamily Press