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Terra Village

Denver, CO


 

Located within the highly-desirable Sloan’s Lake/Edgewater neighborhood, TERRA VILLAGE is a 402-unit garden-style community consisting of one, two, and three-bedroom units, of which 66% are two and three-bedroom units. Situated on almost 16 acres of land, there are 23 buildings built in that have wood frame construction. All units have private patios or balconies and open floorplans. Terra Village was built in two phases in the early 1970s with twin T- and wood-frame, two- and three-story walkups.

Amenities include a pool, basketball court, playground, pet play area, courtyard, picnic area, and walking/biking trails. Trion will strategically reposition the asset by rebranding the property, adding additional amenities such as a dog park and an outdoor fitness area, and improving the overall curb appeal with new paint, signage, and landscaping.

The Edgewater/Sloan’s Lake submarket has seen unprecedented growth with no signs of slowing down, as it’s solidified itself as one of Denver’s most popular neighborhoods to live in. The property is within walking distance of a multitude of vibrant restaurants, food halls, bars, and local hotspots that attract Denver residents from all neighborhoods. Just a half a mile away from the property is Sloan’s Lake, the biggest lake in Denver and the city’s second-largest park at 177 acres. With average incomes north of $100k and home prices regularly selling for north of $1m within the submarket, there’s no question that the neighborhood isn’t getting any cheaper. With that said, we see this property attracting a similar renter pool, looking to enjoy what Edgewater/Sloan’s Lake has to offer, at a relatively affordable cost of living.

 

Investment Highlights

• Off-market/Low Basis: In today’s market, it is rare and challenging to be able to purchase a deal this size completely off-market. Due to the off-market opportunity that Trion was able to negotiate, the deal is being purchased at a favorable basis of $271k/unit.
• Low Density: Situated on 15.74 acres of land, Terra Village is a low-density community placed within an urban pocket surrounded by high-density buildings. Within a 5-mile radius, for properties over 300 units, the next biggest lot sits on 4.5 acres. Additionally, Terra Village is the largest property out of 10 multi-family properties comprised of more than 300 units, located in Wheat Ridge, Edgewater, and Sloan’s Lake.
• Unprecedented CapEx spent on System Upgrades by Seller: Current ownership has invested over $12MM (~$30K/unit) in full system and infrastructure upgrades since 2018. It is unprecedented to see this level of upgrades to systems on a 1970s property. The seller replaced all roofs, windows, all piping in the radiant heating system, new gas lines and boilers in the all-new boiler room in phase 2, mini-split systems inclusive of upgraded electrical panels and electrical service, and more than a million dollars in the parking lot and cement work, cutting down and replacing of over 50 trees and improving overall site drainage at the property.

• Opportunity to Rebrand and Push: While the seller has done a fantastic job maintaining the asset, Trion has the opportunity to rebrand and renovate the property cosmetically to capitalize on the desirability of the neighborhood. The new name of the property will be “EDGE 26 at Sloan’s Lake,” the rebrand will come with an updated paint scheme, new signage along 26th Avenue and throughout the property, a new leasing office, and upgrades to the 16-acre site’s amenities. Unit renovations will include washer/dryers in unit, hard surface countertops, stainless steel appliances, a modern interior paint scheme, modern fixtures throughout, and an updated tech package. As a result, we see tremendous upside as demonstrated by multiple comparable properties in the neighborhood.

The Full PPM Will Be Available and Commitments Will Be Accepted at the Conclusion of the Webinar

 


Download Deal Brief

  • No. of Units 402
  • Acquisition Price $108,750,000
  • Hold Period 4 years