DB Capital Management (DB Capital) has acquired Cleo Apartments, a 142-unit multifamily community in the Lowry submarket of Denver for $38 million.
Built in 1979, Cleo features large one- and two-bedroom floor plans on a low-density site plan. Located at 425 S. Galena Way, the property is centrally located between all of Denver’s largest employment hubs including the Denver Tech Center (197,500 jobs), Downtown Denver (184,400 jobs), Fitzsimons Life Science District (45,000 jobs upon full build-out) and Denver International Airport (35,000 jobs.) The property was 96 percent occupied at closing.
“Cleo is a good example of our investment strategy to acquire value-add opportunities in top tier submarkets outside of major metros exhibiting strong economic growth,” said DB Capital CEO Brennen Degner. “Denver continues to rank as one of the best places to live in the U.S. as well as post extremely strong job and population growth figures and we will continue to grow our portfolio here.”
DB Capital plans to rebrand the property and implement a capital improvement program that will focus on exterior and common area upgrades in order to drive desirability and prospective tenant volume. The plan includes renovating about 40 percent of the units with high-end finishes including quartz countertops, LVP flooring, updated fixtures and updated cabinet fronts as well as adding washer/dryer to all units at the property. Additionally, DB Capital plans to update the pool area, basketball court and the dog park, as well as upgrade the community’s clubhouse/leasing office.
“The Lowry community is an excellent place to live and the relative affordability is driving people to this submarket,” said DB Capital Vice President Darren Hulick, who leads the firm’s acquisitions in the Western U.S. “With limited new development in the area and population growth expected to continue, the property is well-positioned for long-term growth.”
Dan Woodward, David Potarf, Matt Barnet, and Jake Young from Walker & Dunlop’s Denver office represented the seller in the transaction.