Castle Pines’ only apartment property sold to a joint venture keen on the uniqueness of the asset.
Magellan Investment Partners LLC and Kinship Capital acquired the Advenir at Castle Pines community, renamed the Avant at Castle Pines, for $77.25 million, according to public records.
“This acquisition represented a great opportunity to invest in Denver, a market we believe in long term,” David Levin, principal of MIP, said of the acquisition of Avant at Castle Pines, the third acquisition by MIP in the past 12 months. “Castle Pines is a barrier-to-entry location, which is coveted for its access to top-rated schools, its affluent demographics and access to employment.”
“We had a lot of interest in the deal,” added Jordan Robbins, managing director, HFF, who handled the sale with Jeff Haag, associate director, HFF. “Potential buyers really liked the location because the demographics are very strong and this is, as of right now, the only rental community in Castle Pines. There was a lot of appeal because of the limited competition.”
Constructed in 2002, the 356-unit community at 520 Dale Court also offers the buyers significant value-add opportunities, noted Robbins. Seller Advenir Inc. had made some common area and unit improvements, however, “There is a lot of room to go in and continue unit renovations and drive additional rent growth, and that really resonated with a lot of folks,” he added.
As part of MIP and Kinship’s renovation strategy, the joint venture will immediately begin to update the apartments along with the clubhouse and accompanying common-area amenities.
“Avant at Castle Pines fits perfectly with our commitment to being an innovative and duration-driven investment partner,” said Ethan Meers of Kinship Capital. “And it fits with our goal to expand our presence in the greater Denver area.”
Avant at Castle Pines comprises one-, two- and three-bedroom apartments with large floor plans as the community was designed to condominium specs with approximately 80 percent of the units offering detached garages as well as individual driveway access points.
Apartments include custom cabinetry and gourmet kitchens while the community includes a 24-hour fitness center, grilling station, on-site recycling and resort-style swimming pools.
At the time of the sale, Avant was approximately 95 percent occupied.
Magellan Investment Partners is a real estate investment management company focused on the acquisition and asset management of multifamily properties in key U.S. markets and is an affiliate of Magellan Development Group.
Kinship Capital is a private real estate firm that makes investments in the U.S. across a variety of product types, including office, retail, multifamily, hospitality and industrial real estate. It has partnered on projects such as the S’Park mixed-use project in Boulder.