Property: Modera Art Park
Buyer: Mill Creek Residential
Seller: Carmel Partners
Property type: Mid-rise
Purchase price: Withheld
Though it made its name as a developer, Mill Creek Residential is also seeking attractive acquisition opportunities.
With the the purchase of Driveline, which it rebranded to Modera Art Park, in Denver, the Boca Raton, Florida-based company found an asset for the long-term at what Jaymie O’Harrow, managing director of acquisitions, described as a compelling stabilized yield, attractive assumable fixed-rate financing and a cost basis that is below replacement cost.
Location was also a big attraction for the company. Modera Art Park is a 10-minute drive to the Denver central business district and offers ample biking and walking access.
“Modera Art Park is located in the highly desirable River North Arts District [RiNo] submarket, which has become one of the city’s premier live-work-play locations over the last decade,” O’Harrow said. “As a former industrial hub, RiNo is characterized by its warehouse-meets-modern urban feel.”
Gentrified RiNO was created in 2005 in part what had once been a predominantly African-American neighborhood. “Today, the submarket offers residents convenient access to an unparalleled collection of local coffee shops, bars, restaurants, breweries, distilleries, art studios and employment hubs,” he said. “With all its locational benefits, the RiNo submarket has attracted a young, affluent and highly educated resident base.”
Expansive amenities and features
The six-story, 417-unit property, which opened in 2021, offers studio, one- and two-bedroom homes with select townhome-style layouts. Its units come with 9-foot ceilings, stainless steel appliances, wood plank-style flooring, quartz countertops, tile backsplashes, custom cabinetry with soft-close doors and drawers and undercabinet lighting.
Modera Art Park’s amenities include a pool and spa deck featuring a bar area and fire pits, rooftop lounge, rooftop bar and dining area, courtyard with lawn games and evening lighting, clubroom, coworking lounge, pet park and pet spa, makerspace for projects and crafts, gaming room, yoga studio and 24-hour fitness studio.
Mill Creek plans to stabilize occupancy, control expenses and maximize distributions at the property. “We believe that the cost basis, high-quality construction, dynamic submarket and durable capital structure will lead to attractive risk-adjusted returns,” O’Harrow said.
With a slow transaction market and less competition for apartments, O’Harrow said Mill Creek sees a chance to take advantage of other compelling opportunities like Modera Art Park.
“Mill Creek will be actively monitoring investment opportunities across our target markets, seeking opportunities that provide attractive relative value,” O’Harrow said. “We want to utilize our long-term view to invest in quality real estate within markets with positive fundamentals.”
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