Rob Taylor has set another hook into the multifamily market in a western Denver suburb.
His Solana Beach, California-based firm Brixton Capital bought the 272-unit Whisper Creek apartments in Lakewood for $79.5 million, marking its second apartment complex in the town.
The seller was also a Southern California-based company, Newport Beach-based CWS Capital Partners, the Denver Business Journal reported.
It marks Brixton Capital’s third multifamily property in Colorado. Brixton also owns Parkside at Littleton Village in Littleton and The Windsor in Lakewood.
The deal comes as apartment vacancy remains near high water marks amid a flood of supply hitting the Denver market through new development. Apartment vacancy rates in the Denver metro area fell in the second quarter of this year after hitting a 15-year high in the first.
The rising absorption rate has led investors to test the market with a renewed sense of optimism.
Earlier this month, Calraya Residential bought the Sofi Belmar apartments at 823 South Vance Street in Lakewood for $46 million. Prior to that, a Kentro Group Real Estate affiliate bought the 194-unit Korsakov Apartments at 1625 and 1675 South Birch Street in Denver for $33.3 million, marking the first time that property was sold in half a century.
And last month, Four Peaks Multifamily Partners bought the 297-unit Harvest Station Apartments in Broomfield for $85 million. In August, Two Arrows Group, Spark & Halo and OlivePoint Capital jointly purchased the Stella on the Park apartments and an adjacent retail property for a combined $50.5 million.
Brixton was attracted to “the long-term strength of the Denver metro rental market” and was “commit[ted] to investing in communities that enhance residents’ quality of life,” Taylor, the firm’s president, said.
Fairfield Residential built the two- and three-story garden-style apartment community at 3505 South Nelson Circle in 2002. Units average 928 square feet and have 9-foot ceilings. Residents have access to amenities including detached garages, a resort-style pool and spa, a clubhouse, a business center, a 24-hour fitness center, outdoor grill stations, a playground and a pet park.
Brixton plans to complete upgrades at the complex and hand off property management to Greystar. Tony Nargi of JLL Capital Markets secured the financing for the acquisition on behalf of Brixton.
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