DENVER-The Bascom Group LLC has purchased Hyland Park Centre, a 492-unit apartment community located at 1800 W. 85th Avenue in Federal Heights, for $25.25 million. Mesa West Capital funded the first-mortgage debt for the acquisition, which is composed of 24 three-story apartment buildings spread out over nearly 18 acres to create a garden-style medium-density layout.
The sale expanded Bascom’s Denver portfolio to 22 properties, totaling 8,002 units, and ranking Bascom as the second-largest owner in the Denver metro. Bascom worked with Brandon Smith and Brian Eisendrath of CBRE to arrange the financing for the purchase. Tim Shunta of Unique Properties represented the buyer and seller in the transaction, and the acquisition for Bascom was managed by Bascom’s SVP Jeffrey Fuller and Paul Miskowicz.
Little information has been revealed about the seller, but an industry source tells GlobeSt.com that the 385,000-square-foot property was previously owned by a state organization. “We’re going to make some improvements to the property, and it’s in our business plan to hold onto it for three to five years,” Fuller tells GlobeSt.com. He adds that the property was at 99% occupancy at the time of closing and that Bascom had arranged a bridge loan with Mesa West to facilitate property renovations, but he could not reveal any more details about the financing. Neither Bascom nor Mesa West revealed to GlobeSt.com if there had been other bids on the property.
Built in 1985, the complex is located 20 minutes northeast of downtown Denver and is surrounded by major freeways including interstates 25, 76, 270 and 70, as well as Highway 36, which provide easy access to all major job centers in the Denver metro area. The property’s onsite management will be overseen by AMC.
Each unit includes modern appliances, private patios/balconies, individual air conditioning, outside storage and oversized closets. Select units include upgraded light fixtures, French doors, wood-burning fireplaces, upgraded faucets, vaulted ceilings and new countertops. Hyland Park’s common-area amenities include two swimming pools, two playgrounds, four onsite laundry facilities, a large clubhouse/leasing office and onsite storage space for rent. The unit mix consists of 59% two-bedroom, two-bathroom units.
“This represents our third acquisition in the past 90 days in Denver,” says Fuller. “We are excited about acquiring another property in Denver given the high occupancies and potential for market rent growth.”
According to Steve Fried, principal for Mesa West, the property has tremendous upside potential, especially given that the Bascom Group was able to purchase the high-occupancy community for less than $60,000 per unit or $76 per rentable square foot. Moreover, apartment fundaments in Colorado are strong and expected to continue as the economy in Denver and throughout Colorado improve. This, coupled with Bascom’s business plan to upgrade unit interiors and common-area amenities, will increase rents and add value to the property, Fried adds.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
