The Gaucho

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.

Mount View Lane

155 Mount View, from Knightbridge Capital

Mount View Lane

about this investment

Acquisition Date:

January, 2023

Estimated Hold:

3 Years

Purchase Price:

$1,543,000

Total Equity:

$423,000

Leverage on Acquisition:

70.0%

125-155 Mt. View Lane is a 12,400-square-foot flex/industrial facility located in the dynamic area of Colorado Springs. Ideally situated, the facility offers direct access to both Nevada Ave. and I-25. The property comprises four-five shallow bay industrial units with less than 10% office finish, also including a fully fenced outdoor storage area.

The property was acquired in an off-market transaction, not solely for its prime location, but also for its untapped potential. The property had grappled with a significant rollover risk in the first year with 27.42% in-place vacancy. This scenario presented Knightbridge Capital with the opportunity to address and rectify deferred maintenance while enhancing the income potential of the investment by approximately 25%. Through a clear and defined marketing strategy, we realigned rents to the prevailing rates within the first six months of the acquisition, truly showcasing our expertise in unlocking hidden value.

Knightbridge Capital Buys Value-Add Multifamily Property in Denver

The Gaucho by Knightbridge Capital
The Gaucho by Knightbridge Capital

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.

Newland Way

Newland way from Knightbridge Capital

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.

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.

Matt Ritter

Matt RItter of Knightbridge Capital

Matt has leveraged his business expertise in Commercial Real Estate and other industries to create and grow multiple Colorado businesses.

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Aaron Schaffer

Aaron Schaffer

Aaron, a Colorado native, graduated from Colorado University in May 2023 with a Bachelor of Science in Business Administration at the Leeds School of Business with a dual emphasis in Finance and Accounting.

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Shelly Curtis

Shelly Curtis of Knightbridge Capital

Shelly has over 20 years of experience in operations and human resources within the commercial real estate and oil and gas sectors.

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