The “Ivy Crossing” apartment portfolio totals 1,023 units located in three contiguous properties originally developed between 1974-1977.

DENVER—Frequent partners Los Angeles-based Oak Coast Properties and BMC Investments of Denver have added 1,023 units to the partnership's portfolio here in a multifamily deal valued at $177 million.

The acquisition of the “Ivy Crossing” portfolio marks the ninth and largest transaction undertaken by the Oak Coast-BMC partnership.

Newmark Knight Frank, which represented the undisclosed seller, states that the deal involves the largest number of units in a single trade and the largest multifamily transaction by dollar volume in metro Denver since the September 2016 sale of The Breakers.

The multifamily properties included in the Ivy Crossing portfolio are all located within the Cherry Creek School District, widely recognized as one of the best in the state, Oak Coast states. Known previously and separately as Timberline Apartments, Woodhaven Apartments and Westwood Apartments, the three multifamily contiguous properties provide critical workforce housing in the region and will be renovated and rebranded as one large community named Ivy Crossing, the purchasers state.

Oak Coast Properties also reports that the deal marks the 11^th Oak Coast Properties' assignment for BLDG Management, the property management affiliate of BMC.

Holliday Fenoglio Fowler arranged a 15-year, full-term I/O $120-million financing for the acquisition through Freddie Mac's Optigo Social Impact initiative.

With the Ivy Crossing portfolio now in hand, Oak Coast Properties, which has been aggressively expanding its Denver multifamily portfolio, has increased its portfolio in Denver to more than 5,000 units valued at more than $1 billion.

“This acquisition represents a true one-of-a-kind opportunity within metro Denver to reposition three individual legacy assets and to create critical mass by combining them into one of the largest in a region where housing is in high demand,” says Phillip Nahas, managing partner of Oak Coast Properties. “Not only is the upside potential of this value-add portfolio substantial, but these apartments will provide improved housing options for Denver's workforce.”

“As our single largest takeover to date, Ivy Crossing marks a major milestone in our commitment to improving workforce housing in the Denver metro area,” adds Matt Joblon, CEO of BMC Investments. “Not only does it demonstrate our ability to execute an extremely complicated transaction—combining three properties into one to create one of the largest multifamily assets in Denver—but it also further solidifies the strong partnership between Oak Coast Properties, BMC Investments and BLDG Management.”

The Ivy Crossing properties, originally built between 1974-1977, are located less than 10 minutes from the Denver Tech Center business corridor near the intersection of South Quebec Street, one of Denver's main north-south thoroughfares, and East Yale Avenue.

BMC Investments and Oak Coast state that return on investment will be driven through a planned more than $5-million capital improvement program that will focus on exterior and amenity components that have not been upgraded in more than 40 years. Specific upgrade efforts will include: improvements and centralization of the combined community leasing center; full renovations to a formerly shuttered 5,000-square-foot clubhouse and amenity center; enhancements to landscaping and property exteriors and the handling of some deferred maintenance issues.

Terrance Hunt, vice chairman Newmark Knight Frank in Denver and Shane Ozment, vice chairman of NKF, represented an undisclosed seller in the deal.

The HFF team that arranged the Freddie Mac loan on behalf of Oak Coast and BMC was led by senior managing director Charles Halladay and directors Brock Yaffe and Rick Salinas in the transaction.