Vukota Capital Management Acquires Amherst Apartments and Fitzsimons Place Apartments In Denver, Colorado
27 February, 2015
Denver, CO – Vukota Capital Management (VCM) has acquired two multi-family communities.
The Amherst Apartments located at 2775 South Federal Boulevard in Denver, Colorado for a total purchase price of $5.6 million, along with Fitzsimons Place Apartments located at 1568 Nome Street in Denver, Colorado for a total purchase price of $6.5 million.
The Amherst Apartments is an 81 unit 3-story garden walk-up style apartment building located adjacent to a private university that caters to international students and as well as near major infrastructure, several major retail and employment centers.
Fitzsimons Place Apartments is a 99 unit 3-story garden style apartment located just 3 blocks from the 580 acres Anschutz Medical Campus and the Fitzsimons Life Science District. Over the next 10 years, the number of people employed at the medical campus is expected to increase to more than 45,000. This will cause tremendous demand for apartment housing and in turn increase rents which will ultimately increase multi-family property values over the next decade.
Both investments provide an attractive balance between stable monthly cash flow distributions, inflation protection, and upside based on conservative assumptions.
The Amherst Apartments was closed on February 6, 2015, and Fitzsimons Place Apartments was closed on February 17, 2015. These two acquisitions are the first two VCM’s multifamily holdings properties in Colorado.
VCM multi-family strategy is to acquire properties in secondary and tertiary markets below replacement cost in growing supply constrained communities where, over the long-term, rents are expected to increase above the rate of inflation. Key value drivers that VCM considers are the number of jobs created relative to unit supply, and the spread between cap rates and borrowing costs. VCM’s typical property acquisitions range between 100 and 400 units, or $5.0 million to $35.0 million purchase price.