29th Street Capital (29SC), a privately held real estate investment firm that has primarily focused on value-add multifamily acquisitions, has launched a new core-plus strategy to focus on newer, larger, and higher-quality assets where an upside can be found through management efficiencies, energy savings, and improving market conditions.
Marking the firm’s entry into the core-plus market is the $134 million acquisition of the 424-unit Parq Iliff Station, a Class A+ luxury community in the Southeast Aurora submarket of Denver. This is 29SC’s 11th multifamily acquisition in the Denver area, where it has nearly 1,500 units. Its in-house property management group, Haven Residential, will manage the community.
“Our proven track record and bolt-on acquisition approach is what allows us to step up to projects of this caliber,” said 29SC managing principal Robb Bollhoffer. “We are able to provide improved service to the community and, as a result, additional value to both our residents and investors.”
Built in 2018, Parq Iliff is located 11 miles southeast of downtown Denver and is in close proximity to a light-rail station, providing residents with easy access to downtown, Denver International Airport, Fitzsimons Medical Campus, the Denver Tech Center, and the Southeast Business Corridor. The community offers spacious floor plans and luxury amenities.
According to 29SC, the firm’s improvement plan for the community includes new smart-home technology packages, interior finish upgrades, and the addition of amenities.
“The Southeast Business Corridor of the Aurora submarket gives residents convenient access to an abundance of high-paying jobs across a variety of industries,” said Rob Gersch, senior vice president of acquisitions and development for 29SC in Colorado and Utah. “Consistently strong levels of population migration, a favorable income tax crate, and a diverse, highly educated workforce are all contributing factors to Denver being one of the fastest-growing metropolitan cities in the mountain region.”
The property was financed with a fixed-rate life company loan arranged by CBRE Capital Markets’ Brian Eisendrath and Cameron Chalfant. The name of the seller was not released.
In the past year, 29SC has acquired 18 conventional multifamily communities with more than 4,000 units throughout the U.S. Its current portfolio consists of more than 15,000 units and a new construction pipeline of more than 2,500 units.