Avanti Residential has partnered with Trinity Investors in the $45 million acquisition and recapitalization of Sunset Peak Apartment Homes, a 184-unit multi-family community in Thornton. The project is unique in its townhome design and low density for the local market area. It will receive a fresh capital infusion of approximately $5.3 million for apartment interiors, new amenities and exterior improvements.
“We are pleased on many levels to partner with Trinity Investors and begin work on the exciting renovation of Sunset Peak,” said Christian Garner, president of Avanti Residential. “This acquisition and recapitalization will continue the work we began on 20 percent of the apartment interiors in 2019-2020 and reposition the project to offer a higher quality resident experience.”
Sunset Peak Apartment Homes is located at 475 Russell Blvd., just off I-25 and Thornton Parkway, and a 15-minute drive to Denver’s central business district. The project features a mix of two- and three-bedroom townhomes amid a spacious greenbelt area on a 12-acre site. Amenities include a swimming pool and splash pad, grilling station and dog park. A new fitness center and upgrades to the pool and playground areas are included in the planned renovation.
Approximately $3 million of the renovation budget will be invested in apartment interiors, where Avanti’s construction team will modernize 147 units ($16,433 per unit) with new lighting fixtures and cabinet fronts, new appliances, luxury vinyl tile flooring and other enhancements. The property will also undergo resurfacing of the parking areas and new roofs on three buildings.
Denver-based Avanti is a fully integrated apartment company that owns and manages approximately 9,000 apartments, roughly 25% of which are in Metro Denver and Colorado Springs. Avanti also has significant holdings in Arizona, Florida, Greater Kansas City, and Utah. The firm is selectively acquiring core-plus and value-add apartment projects on behalf of Avanti’s institutional and private capital partners.
This transaction is the first investment between Texas-based Trinity Investors and Avanti in the Denver marketplace. The venture was drawn to the attractive basis at $245,000 per unit when compared to the entry price for new construction, plus the stable and increasing demand for rental housing in a Thornton submarket with a highly constrained development pipeline.“The challenging apartment investment environment over the past year nonetheless presents sound opportunities where we can apply our real estate experience and market knowledge with new and existing investor relationships to deliver attractive risk-adjusted returns,” added Garner.