FT. COLLINS, CO-Ohio developers Edward and Herbert Newman and their partners have purchased the Arbors at Sweetgrass, an upscale, luxury apartment community, for $30 million. The property will be managed by the Newmans’ management firm, Summit Management Services, Inc.
Edward Newman, CEO of SMSI, tells GlobeSt.com that the seller was Hamilton Zanze, a privately owned real estate investment company with multiple multifamily properties in the West region. Summit MultiCapital LLC, the acquisition and financing arm of SMSI, and JS MultiCapital Corp. financed the loan, which was a Freddie Mac-capped ARM.
Newman adds that SMSI desires to be a presence in Ft. Collins, considering it a great marketplace for investment. Last year, SMSI purchased another luxury property here: Stone Creek Apartments, a 167-unit apartment complex located across the street from Colorado State University. SMSI recently refinanced this property with a 3.48% fixed FHA 223(f) loan, which is a 35-year, self-amortizing, assumable and assignable, non-recourse loan. Over the past 12 months, SMSI has closed a total of seven similar loans in keeping with the company’s business model to increase NOI by using SMSI’s expertise in acquiring FHA financing.
Newman also tells GlobeSt.com that SMSI will make roughly $400,000 of improvements to the 402,000-square-foot property, which is currently 96% occupied. Improvements include suite upgrades (new appliances, flooring, lighting and plumbing fixtures) and upgrades to the clubhouse, landscaping and signage in order to “really give it some bang, and we’ll be able to raise rents once we do that as well.”
SMSI plans to hold onto the property long-term, Newman continues. “There are numerous options we engage in when it comes to owning property, and sometimes we look at a seven- to 10-year strategy, but for the most part we’re long-term holds. We like to build equity and value.”
The apartment community features 259 well-appointed garden apartments situated on 25 acres. The property boasts a lavish selection of amenities including a resort-style swimming pool; 24-hour fitness center and clubhouse; racquetball, basketball and tennis courts; a business center; and scenic walking trails.
“The Arbors is a great addition to our portfolio of properties,” says Newman. “Across the country, our properties are at or near 100% occupancy. In each community, they are the place to live. We’re excited to do the same for the Arbors.”
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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.
