Granite Peak Partners, a Santa Barbara real estate investment firm, recently acquired an 85-unit apartment complex in the Cherry Creek neighborhood of Denver, Colo., for $6.5 million.
The Ambassador is adjacent to two other Granite Peak Partner apartment communities: The Edge and Rise. The transaction closed Sept. 20. Representing Granite Peak Partners was Tim Shunta of Unique Properties.
The Edge and Rise were purchased in 2011 with renovations completed in 2013. By acquiring the Ambassador, Granite Peak Partners now owns three apartment complexes immediately adjacent to one another with a total of 302 units.
The Ambassador encompasses 67,300 net rentable square feet in two six-story towers. It will undergo a full upgrade of unit interiors, hallways, public areas and exteriors. Overseeing the renovation will be Greystar Real Estate Partners, which will also manage the property.
“The Denver multifamily housing market is strong and expanding,” said Bruce Savett, a principal at Granite Peak Partners. “The Cherry Creek submarket attracts tenants who want upscale living spaces and amenities. The Ambassador apartments will help fill that need after the rehab is finished. By inserting new management and making renovations, we expect our efforts with the Ambassador will result in higher rents, increased market value and above-market returns to our investors. This is what we experienced with The Edge and Rise. We will share management among the three properties using Greystar to reduce costs and increase efficiency.”
The current occupancy rate of the Ambassador is 80 percent.
“Once renovations are completed, occupancy is projected to increase to 95 percent,” said Pierre Tada, principal with the firm. “We intend to hold the property an estimated five years, after which it will be sold with The Edge and Rise, enabling an institutional buyer to purchase 302 apartment units at what is essentially one location.”
Granite Peak Partners is building a $68 million, 300-unit apartment community near Williston, N.D., a city that is booming because of the discovery and production of the Bakken oil and gas reserves. Occupancy of the first 180 units is slated for April 2014.
“It’s always a primary desire to identify and acquire value-added projects to include in our portfolio for our accredited investors and advisory clients,” Savett said. “Our Colorado and North Dakota holdings fit our investment criteria.”
For more information about Granite Peak Properties and its Accredited Investor real estate investment offerings, contact Savett at 805.892.4900 or [email protected].
— Diane Rumbaugh is a publicist representing Granite Peak Partners.