DENVER-MIG Real Estate LLC, now based in Newport Beach, CA, is investing in its former hometown here by purchasing the luxury apartment complex Rosemont Ridge at Lowry. The company bought the 240-unit property for $29.7 million from Summit Management Services, which sources say had bought the complex in 2008 for $30.2 million.
Built in 2003, the property at 10000 E. Alameda Ave. is on 10 acres. The complex includes amenities such as a fitness center, a heated pool, playground, spa, theater and units with washers and dryers, private balconies or patios and walk-in closets.
Greg Merage, CEO of MIG, tells GlobeSt.com that the property is occupied in the mid-90s. Rents range from $855 to $1,655 per month.
Merage is the nephew of Chef America (creator of the Hot Pocket products) co-founder Paul Merage. After the brand was sold to Nestle for $2.5 billion in 2002, Paul was able to put cash into a commercial real estate investment firm Stoneridge Capital Partners, which was later renamed Merage Investment Group.
Greg tells GlobeSt.com that the Chef America company used to be headquartered in Denver, which is where the family is from, so he’s knowledgeable about the market. MIG made its first Denver investment in August 2010 with the purchases to two Holiday Inn hotels, and then bought I-225 Plaza, a five-building mixed-use property in Aurora, CO in March 2011.
“Denver is a very diversified economy with a good quality of life, making it a logical location for employers and regional offices,” he says. “Though apartment rents have been depressed, there’s now a limited supply, and we think we’re going to see occupancy firm up.”
His firm has completed more than $400 million in acquisitions in the past three years, and Greg says he’s interested in expanding with all product types in the Western markets. “It has been difficult to find apartments as the REITs and institutions have driven down cap rates, so we’re expanding our search geographically,” he says. “We hope to announce even more acquisitions in the next year.”
David Potarf, Dan Woodward and Jordan Robbins with CBRE represented Summit in the transaction. Greg has hired Alliance Residential Co. to manage the property.
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