PRAEDIUM GROUP, HAMILTON ZANZE ACQUIREDENVER AREA MULTI-FAMILY PROPERTY FOR $31 MILLION
Sept. 18, 2006 - New York -The Praedium Group LLC, a New York City-based national real estate investment firm, and San Francisco-based Hamilton Zanze & Company, announced today the acquisition of the Mountain View Apartments located in Aurora, Colo., for $30.65 million, or $51,083 per unit. The multi-family property was acquired from United Dominion Realty Trust, Inc. Omni Apartment Communities, Inc. is managing agent for the property, which is currently 85 percent occupied.
Mountain View is a 600-unit apartment complex with a total of 47 two- and three-story buildings, a swimming pool, clubhouse and leasing office, situated on a 52-acre site.
"Denver apartment fundamentals are positioned for a strong recovery," said Chris Hughes, Principal at the Praedium Group. "Specifically, Aurora has recently seen the beginning stages of the redevelopment of four of its former military and airport facilities."
"A substantial capital improvement campaign is planned to improve the physical condition of the asset and augment the existing amenities," said Kurt Houtkooper, Acquisition Manager of Hamilton Zanze & Company.
David Potarf and Dan Woodward of Marcus & Millichap in Denver represented the seller.
The acquisition of the Mountain View property represents Praedium's fifth joint venture with Hamilton Zanze. In previous joint ventures, Praedium and Hamilton Zanze acquired various multi-family properties in Colorado, including Ironwood at the Ranch, a 226-unit property located in Westminster; the Trails, a 351-unit property located in Aurora; Sunset Ridge, a 240-unit property located in Northeast Colorado Springs; and The Retreat at Cheyenne Mountain, a 276-unit property located in the Broadmoor district of Colorado Springs. They also acquired Gentrytown Manor Apartments, an 85-unit property located in Antioch, Calif.
Hamilton Zanze & Company (HZ & Co.) is an owner of investment real estate, traditionally apartments. HZ & Co. manages 35 apartment properties totaling more than 6,500 units in the Bay Area, Las Vegas, Colorado Springs, Denver, Ft. Collins, Albuquerque, Portland, Phoenix, Salt Lake City, Spokane County and Seattle.
The Praedium Group is a real estate investor focusing on under-performing and under-valued assets throughout North America, with more than $5 billion in total investments to date in more than 225 transactions comprised of 40 million square feet of commercial space and 44,000 multi-family units. Praedium was formed in 1991 with a leading international investment bank as its sole investor.
Building on the experience and exposure gained through this original investment program, Praedium has been a sponsor of commingled real estate private equity funds since 1994. The funds sponsored by Praedium have attracted investors that include public and corporate pension funds, financial institutions, insurance companies and endowments.
Praedium is investing its most recent $700 million real estate private equity fund, Praedium Fund VI. This equity will be leveraged to acquire more than $2 billion in properties. The fund invests in mid-cap assets throughout the United States and Canada in the $10 to $70 million range, targeting multi-family, office, retail and industrial property types. Cadim, a Montreal-based real estate advisor and portfolio manager, is a major shareholder of The Praedium Group. Cadim is a division of the Caisse de depot et placement du Quebec and a member of the Real Estate group of the Caisse. The Caisse is one of the world's 10 largest real estate managers among pension fund managers. For more information, please see www.praediumgroup.com.
