(Read more on the multifamily market.)
DENVER-The two apartment assets in the region are under new ownership. RedHill Realty Investors LP and BlackRock have paid $44.4 million for the Deerfield and Summerchase complexes, which total 542 units.
Deerfield is a 158-unit apartment complex in Denver. Summer Chase is a 384-unit complex dwellings in nearby Aurora. The combined occupancy is 94%.
RedHill is a San Diego-based private real estate company run by Russell Dixon, formerly national managing director of Insignia/ESG and CB Richard Elis' multihousing practice. BlackRock Inc. is a publicly held investment manager.
The duo plans to reposition the 1980s-era properties and then raise rents in an effort to increase the value of the asset. The plan calls for investing an additional $7,300 per unit at Deerfield and $10,800 per unit at Summer Chase.
"Deerfield and Summer Chase are RedHill's entry into the Colorado market, and are the easternmost acquisitions we've made to date," Dixon says. "With the robust job market and relatively low levels of construction, we intend to have a very strong presence in the Rocky Mountain State."
The properties were acquired with the help of $38.8 million in first mortgage and mezzanine financing. The first mortgage was provided by Fannie Mae and the mezzanine loan was provided by a fund that includes Fannie Mae and an institutional fund manager. The financing was arranged by Eric Tupler and Mike of CBRE Melody's Denver office.
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