DB Capital Management (DB Capital) has closed on the recapitalization of Ascent at Union Square in Provo, Utah, a 139-unit garden style community acquired by the Denver-based multifamily investment firm in December 2020.
Over the past two years, DB Capital invested in a multimillion-dollar capital improvement program repositioning the 1990’s vintage property to compete on price with newer product in the area. Enhancements included the renovation of unit interiors, a new two-story on-site fitness center, upgrades to the pool and barbecue area, new landscaping and a complete refresh of the building exterior.
“Despite the challenging market, we were able to achieve investor returns that were considerably ahead of original projections,” said DB Capital Co-founder and CEO Brennen Degner. “Given the current market conditions it made more sense to recapitalize and stay in the asset rather than sell into a depressed market, especially given very strong property performance. We wanted to continue our ownership of Ascent because of what we see as superior long-term growth prospects, a view which is shared by our new partner.”
The recapitalization replaces syndicated equity with an institutional equity partner. The partnership plans to further enhance the community’s competitive position in the Provo market by improving building systems and amenities.
Ascent at Union Square is located at 424 North 300 East, less than a mile from Brigham Young University. The property features a mix of one- and two-bedroom floorplans, covered parking and a first class amenity package.
Rawley Nielsen, Mark Jensen and Darren Nielsen of Colliers represented both parties in the transaction.
Cameron Chalfant and Brian Eisendrath of Institutional Property Advisors’ Capital Markets team facilitated the agency financing execution.
