An affiliate of Oberndorf Real Estate Management, formerly known as The Axton Group, together with The Bascom Group, have acquired the 360-unit multifamily asset in Western US for $74m (€68m).
The acquisition of Hearthstone at City Center multifamily asset in Aurora, Colorado marks Bascom’s fourth US acquisition of 2024 and comes shortly after the recent acquisitions of The Overlook, a 344-unit garden-style multifamily property located in Albuquerque, New Mexico and Texan26, a 204-bed student housing community in Austin, Texas.
Hearthstone was built in 1984 as a low-density community of 41 buildings across 18.25 acres, with ample onsite outdoor space and a diverse mix of one-, two- and three-bedroom floor plans.
Renters enjoy a 50% discount relative to the costs of home ownership in the immediate area, the acquirers said.
Peter Oberndorf, managing director at Oberndorf Real Estate Management, said: “While there is some softness in rents due to elevated supply deliveries, the partnership is positive on the long-term trajectory of the Aurora submarket and greater Denver metropolitan area as new supply becomes harder to build given the higher interest rate environment and recent development restrictions, which will stagnate supply for the foreseeable future.”
He added that the partnership’s business plan includes an extensive value-add renovation program that includes upgraded appliances, countertops and lighting, improvements to common areas such as the fitness centre and pool, as well as a redesigned multipurpose activity area, façade enhancements and revamped landscaping.
Jim Singleton, Bascom’s senior vice president & principal of acquisitions, said: “We are thrilled to make yet another multifamily investment in the city of Aurora and state of Colorado. Despite a challenging transaction market, we are finding select opportunities that we anticipate will be strong investments for our company and our highly valued partners such as Obendorf.”
Bascom’s senior vice president of portfolio operations, Paul Zakhary, added: “Bascom plans to further elevate the property by strategically repositioning and improving operations that will make Hearthstone a top choice among multifamily product in the immediate area.”
The partnership continues to focus on investments in the multifamily sector across the United States, with a focus on value-add opportunities that arise as pricing resets occur amid significant global macroeconomic pressures, the companies added.
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