Vukota Capital Management Acquires Shadow Tree Apartments in Aurora, Colorado
26 April, 2015
Denver, CO – Vukota Capital Management (VCM) has acquired Shadow Tree Apartments located at 1800 Billings in Aurora, CO for $5.4 million. The 118 unit, 3-story garden style walk-up apartment building is adjacent to Highway 225 and 3 blocks from the 580 acre Anschutz Medical Campus and Fitzsimons Life Science District (the largest medical-related development project in the United States).
The building is in good condition with over $400,000 spent in renovations during the past 4 years. In the last 12-months, rents on average have gone up 7.4% primarily driven by new employment at the medical campus.
The transaction was closed on June 30th, 2014 and brings VCM’s multifamily holdings to 3 properties in Colorado.
The transaction is funded by investments of equity capital from VCM and other accredited investors, as well as $3.7 million in mortgage financing from Guaranty Bank.
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.