AURORA, CO—BMC Investments and Oak Coast Properties have spent $65 million to acquire Liberty Creek Apartments in Aurora. The multifamily property is strategically located in the Denver metropolitan area in a submarket boasting strong rental growth, lack of new rental supply and continued barriers to entry for new development. BMC and Oak Coast acquired the asset in an off-market deal and plan to invest approximately $3 million in an extensive property renovation and repositioning effort.

“This quality apartment acquisition brings our current Denver apartment portfolio to more than 1,000 units,” said Phillip Nahas, Oak Coast's managing partner. “The asset offers strong upside potential, to be achieved in part through a multi-tiered property renovation aimed at improving the overall rental experience and maximizing rental rates.”

The 584-unit Liberty Creek Apartments currently exceeds 99% occupancy. The community offers renters a mix of one-bedroom and two-bedroom floorplans. The apartments are laid out in two-story buildings totaling 453,055 square feet. Cable-ready units include washer and dryer connections, central heat and air, dishwashers, balconies, oversized closets and ceiling fans. The pet-friendly community features five basketball courts, three swimming pools, a sand volleyball court, three playgrounds, picnic and barbeque areas, a fitness center, a clubhouse and business center, a laundry facility, on-site security patrol and covered parking.

Located at 13100 E. Kansas Drive, the multifamily property provides residents with close access to retail and services including the Aurora Town Center, newly-developed Market Square, Anshutz Medical Campus, Kaiser Center Pointe and Denver International Airport. In 2016 the community will also enjoy close proximity to a new I-225 Rail Line station offering easy connections to downtown Denver, University of Colorado Denver and the airport, among others.

Built in 1981, the Liberty Creek Apartments will benefit from an extensive capital renovation to include addressing deferred maintenance, upgrading the leasing office, clubhouse, fitness center and pools; and landscaping and enhancing the amenities throughout the property.

“The value-add investment strategy employed for Liberty Creek Apartments is indicative of our firm's overall portfolio strategy,” added Nahas. “Our sweet spot is the acquisition and renovation of quality assets in economically diversified markets with strong and sustained employment and wage growth. Target assets have strong cash flow and room for bottom line growth through property enhancements and increased rents.”

“BMC invested in this property because of its strong submarket with low vacancy and minimal new supply under construction,” said Matthew Joblon, CEO for BMC Investments. “The area has experienced substantial neighborhood gentrification with many older properties benefiting from significant new capital investments. These factors make for an ideal opportunity to purchase, reposition, own and operate the property for the long-term, which is consistent with our business plan.”

The Freddie Mac debt for the transaction was secured by Brock Yaffe of HFF. Oak Coast Properties and BMC Investments have retained BLDG Management, a division of BMC, to manage the property. “BLDG Management excels at executing ultra-fast, large-scale property turnarounds,” noted Joblon.

This acquisition marks the fourth deal with BMC Investments and Belgarde Enterprises over the past two years. BMC's prior Belgarde acquisitions include the Aurora Meadows Apartments and Hidden Lake Apartments, formerly Lakeview Apartments, which were closed in early 2015 and the Villas on 76th Apartments, which were acquired in 2013.

Oak Coast Properties is an active investor/owner pursuing class B and C multifamily community and hotel property acquisitions for the implementation of a value-add, long-term hold investment strategy emphasizing net operating income growth potential. The firm is aggressively targeting well-positioned properties across the Eastern Seaboard, Pacific Northwest, and Western United States for acquisition.