BETHESDA, MD ---Crossbeam Capital LLC of Bethesda, Md. has acquired Summitt Ridge (top left photo), a 94% occupied, 360-unit mid-rise apartment community in Denver, CO. from Trilogy Real Estate Group of Chicago for an undisclosed price.The property at 8330 East Quincy Ave. has a class A location in Southeast Metro Denver, off Interstate 225 less than a mile from the Denver Technology Center, within 10 miles of downtown Denver and close to Inverness Business Park, Buckley Air Force Base and the Fitzsimmons Medical Campus. Fitzsimmons is home to the University of Colorado Health Sciences Center, Childrens' Hospital and the Colorado Science and Technology Park.
“Denver is showing exceptionally strong occupancy and rent growth trends, driven in large part by the market’s continuing expansion of the technology and health care sectors,” said Matt Peterson (middle right photo), Denver-based acquisition manager for Crossbeam Capital.
“We’ve been tracking the market fundamentals consistently and are very fortunate to enter it with an asset purchased at a significant discount to replacement cost—a large multifamily property which can be renovated and repositioned in keeping with our value-add strategy.
“The deal’s prime appeal was Summitt Ridge’s proximity to the Denver Tech Center, the largest concentration of technology offices in a five-state region and a major employment hub,” adds Peterson. “That, combined with its location near two light rail stations, expanding health care employers and to a myriad of shopping and dining conveniences including Cherry Creek Mall, sold us.”
Crossbeam Capital, together with its operating and redevelopment affiliates, Houston-based Concierge Management Services (CMS) and Crossbeam Construction Co. (CCC), has acquired eight multifamily properties nationwide in the past 12 months.
The assets total 2,200 rental units with a market value exceeding $150 million. Last December alone, Crossbeam six large apartment acquisitions in 30-days to accommodate sellers and lenders seeking to dispose of under-performing properties by year-end
David Martin, managing partner/Mountain States and Pamela Koster (lower left photo), partner in the Denver office of Moran & Company, a commercial brokerage specializing in multifamily assets, represented the seller, Chicago-based Trilogy Real Estate Group.
“Summitt Ridge was widely marketed. We went through an extensive bidding process but Crossbeam had the best combination of pricing and certainty of execution and that’s what led Trilogy to accept their offer,” says Martin. “With the closing, Crossbeam proved themselves by doing exactly what they said they would do.”
The Moran broker confirmed that Summitt Ridge “A-plus location” generated heavy interest from potential buyers. “In this market, proximity to jobs is a leading determinant when an apartment renter is looking for a place to live.”
Built in 1980, the apartment community has a wide array of amenities which will be upgraded to resort style, including basketball and tennis courts, a large pool, outdoor barbecue facilities, an expansive clubroom with billiards, fitness studio with yoga center and a full service business center.
The lifestyle and livability at Summitt Ridge will be further enhanced by implementing the Crossbeam / Concierge signature renovation strategy, says Peterson. The one and two bedroom floor plans, which average a spacious 921 square feet, will undergo a series of improvements to the apartment homes including completely renovated kitchens, upgraded baths and new lighting, flooring and color schemes. Additional enhancements will be made to the landscaping, signage and façade.
Concierge Management Services will manage the apartment community and Concierge Construction Company will oversee the renovation.
Meantime, Rich Devaney (middle right photo), CEO of Crossbeam, says the firm is expanding its acquisition team in anticipation of heavier bank REO, lender and owner year-end disposals of financially-underperforming, value-add multi-family communities. Noah Drever of Concierge Asset Management, which merged with Crossbeam last year, is joining the real estate investment firm to work with Brad Blash, chief business officer who heads Crossbeam’s acquisition program.
“Our mission it to give sellers deep due diligence and swift, smooth closings so they can get a problem asset off their books,” said Devaney.
Contacts:
Jennifer Farthing, 240.223.1679, jfarthing@crossbeamcapital.com
Chris Barnett, 415.921.5092 cbarn@aol.com
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