Gaucho Apartments

the gaucho

about this investment

Acquisition Date:

November, 2022

Estimated Hold:

4 Years

Purchase Price:

$7,300,000

Total Equity:

$3,052,368

Leverage on Acquisition:

70.0%

The Gaucho is a 39-unit garden style multi-family asset located in the highly desirable Capitol Hill neighborhood of Denver, Colorado. The property boasts excellent walk and bike scores (94 and 99) with immediate access to Civic Center Park, Cheesman Park, Broadway and Colfax entertainment/shopping corridors, several major grocery stores, and Denver’s lively downtown Central Business District.

The Gaucho offers tenants a mix of oversized studio, one-bedroom, and two-bedroom units featuring private balconies, exposed brick, and in-wall A/C units. Additionally, there is on-site laundry, off-street parking, and a community/courtyard area.

With a comparatively low off-market acquisition basis, better-than-market financing terms, significantly below-market in-place rents, operating inefficiencies, and best-in-place property management, The Gaucho is a prime candidate for our Knightbridge value-add strategy.

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Knightbridge Capital Buys Value-Add Multifamily Property in Denver

Knightbridge Capital Buys Value-Add Multifamily Property in Denver

MileHigh CRE | December 6, 2022

Knightbridge Capital, a Denver-based real estate investment firm, has acquired Gaucho Apartments at 1201 N Clarkson Street in Denver’s Capitol Hill neighborhood. Kyle Malnati, Sam Bretz, and Zack Jenkins of Calibrate Real Estate represented the seller, Tremont Investment Group, in this transaction.

Gaucho Apartments is a 39-unit property, built in 1966 and sold for $7,300,000; $187,180 per unit and $278.73 per square foot. The property consists of 30 Studio/1Ba, 8 1Br/1Ba, and one 2 Br/1Ba units. This is the second acquisition for Knightbridge Capital in the past 16 months

Knightbridge Capital plans to complete the interior and exterior renovation of the property. The construction budget will include interior renovations including paint, luxury vinyl, carpet, appliances, countertops, flooring, plumbing, and light fixtures. In the common areas, renovations will include a new roof, paint, carpet, lighting, parking lot, exterior paint, balconies, new signage, and an updated courtyard. Cornerstone Apartment Services will manage the construction and day-to-day operation of the building.

“Gaucho Apartments represented the partial completion of a 1031 Exchange and a strategic opportunity for Knightbridge Capital to buy a value-add multifamily asset. The 1031 Exchange began two months ago when we sold a newly renovated apartment community in Arvada for $4,950,000. We were tasked with finding a replacement property on behalf of our investors, but we were not willing to compromise our rigorous acquisition standards. This opportunity was presented off-market and fit perfectly with our business plan objectives,” said Matt Ritter, co-founder/principal at Knightbridge Capital. Matt is also a co-founder/principal at Pinnacle Real Estate Advisors.

Read the rest of the MileHigh CRE article here.

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Brix on Belleview

brix on bellview

about this investment

Acquisition Date:

December, 2014

Disposition Date:

October, 2016

Purchase Price:

$12,690,000

Total Equity:

$4,730,000

Leverage on Acquisition:

68.0%

Realized Exit Valuation:

$25,750,000

Net IRR:

69.0%

Net Multiple:

2.50x

Brix on Belleview is a 175-unit multi-family complex in Englewood, Colorado near the Cherry Hills neighborhood. Brix on Belleview is conveniently located, offering access to both downtown Denver and the Denver Tech Center. The property boasts a ‘very walkable’ score of 70 with immediate access to several retail and entertainment options, including a newly built Sprouts Farmers Market just to the east. The property is also in close proximity to major drivers like downtown Littleton, the Littleton/Downtown Light Rail Station and Craig Hospital.

Brix on Belleview offers a variety of modern apartment living options, including fully equipped studio and one, two and three-bedroom floor plans ranging from 465 SF to 1,065 SF with an average unit size of 672 SF. Community amenities include a modern clubhouse/office (including a lounge area and leasing center), oversized pool with resurfaced deck, BBQ area, on-site laundry and secure building entrances.

Brix on Belleview was targeted for repositioning based upon significant enhancements to the building’s functionality, improved property management and operational efficiencies, which provided significant performance to the overall investment.

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Yardz on Kolb

yardz on kolb

about this investment

Acquisition Date:

December, 2016

Disposition Date:

January, 2020

Purchase Price:

$16,200,000

Total Equity:

$6,600,000

Leverage on Acquisition:

65.0%

Realized Exit Valuation:

$36,700,000

Net IRR:

45.1%

Net Multiple:

2.9x

Yardz on Kolb is a 410-unit multi-family complex located in East Tucson, Arizona. The property offers a mix of one, two and three-bedroom units ranging from 470 to 1,123 square feet. The pristine property is ideally located across the street from Eastpoint Marketplace, which has multiple dining and shopping options.

Additionally, the Yardz on Kolb is located just east of historic downtown Tucson, which offers a vibrant mix of shopping, dining and entertainment. Saguaro Nation Park East is less than a 15-minute drive from the property.

The Yardz on Kolb was identified as a value-add opportunity based upon its potential for better management . Enhancements to the unit mix, base building functionality and operational efficiencies provided additional value to the investment.

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Pearl Nines

pearl nines

about this investment

Acquisition Date:

January, 2011

Disposition Date:

February, 2022*

Purchase Price:

$1,198,000

Total Equity:

$468,300

Leverage on Acquisition:

89.6%

Unrealized Exit Valuation:

$4,300,000*

Net IRR:

50.4%

Net Multiple:

8.3x

*Assumes February 2022 sale with exit valuation based upon current appraisal

Pearl Nines is a 16-unit garden style multifamily complex located in the Capital Hill neighborhood of Denver, Colorado. The property boasts both one and two-bedroom units and garage parking, a rare amenity for the neighborhood.

Pearl Nines is a short walk from bars, restaurants, and both Cheesman and Governor’s Parks. Known for its hustle and bustle, this neighborhood offers a harmonious mix of beautiful houses, apartment buildings, and historic mansions. Pearl Nines provides a range of amenities including on-site laundry, extra storage units, garage parking, and balconies for select units.

This property’s lack of previous capital investment, combined with its potential for better management, made Pearl Nines a prime opportunity for bringing units to market and renovating for a premium.

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Newland Way

newland way

about this investment

Acquisition Date:

July, 2021

Disposition Date:

Sep., 2022

Purchase Price:

$3,295,000

Total Equity:

$1,334,936

Leverage on Acquisition:

75.0%

Realized Exit Valuation:

$4,950,000

Net IRR:

112.8%

Net Multiple:

2.09x

Newland Way is a 23-unit garden style multi-family complex located in Arvada, Colorado. The property boasts one-bedroom units with large, functional layouts. In addition to a roof replacement and installation of new gutters completed by the previous owner, the units were primed for interior renovations.

Newland Way is ideally located in close proximity to Olde Towne Arvada, offering easy access to an array of shops, bars, and restaurants as well as the light rail station within less than half a mile. Tenants also benefit from a quick commute to Downtown Denver and other local hotspots in the Denver Metro Area.

Newland Way was identified as a value-add opportunity based upon an analysis of in-place vs. market rents and both exterior and interior unit renovations that, once completed, resulted in rent increases of $450-500 per month.

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One Broadway

one broadway

about this investment

Acquisition Date:

April, 2015

Disposition Date:

January, 2022*

Purchase Price:

$5,155,000

Total Equity:

$1,642,858

Leverage on Acquisition:

68.1%

Unrealized Exit Valuation:

$11,420,000*

Net IRR:

40.7%

Net Multiple:

3.8x

*Assumes February 2022 sale with exit valuation based upon current appraisal

One Broadway is a mixed-use commercial property located in Denver, Colorado. The 35,209 SF office and retail property caters to small to mid-size tenants seeking a professional, urban working environment with unique amenities like an above market parking ratio. The building’s central location offers tenants both an easy commute and access to a variety of shops, restaurants, and entertainment options.

One Broadway was identified as an acquisition opportunity based upon the ability to capture near upside in the rent roll. By offering professional management services, plug & play office suites and limiting below line capital exposure, Knightbridge Capital has been able to execute on significantly enhancing the income performance of the asset.