FCP and BMC team up for $114 million deal in Colorado

Near Aurora. Image courtesy of FCP

FCP made its third multifamily purchase in Colorado — the second announced in less than a week — with the acquisition of Aurora Meadows, a 461-unit community in Aurora, Colorado, through a $114 million recapitalization in joint venture with BMC Investments.

Located at 777 Dillon Way, Aurora Meadows offers a mix of studio, one and two bedroom apartments. Community amenities include a business center; clubhouse; Fitness Center; volleyball, tennis and basketball courts; bowl; sauna; playground; Zoo; laundry room and picnic and barbecue areas. The property is centrally located in Aurora, near one of Denver’s largest employment centers with easy access to Denver’s main thoroughfare I-225. It is within a few blocks of the new Fitzsimons Light Rail stop, Fitzsimons Medical Campus, and retail and dining options.

Colorado Growing Wallet

With Aurora Meadows’ investment, FCP’s Colorado multifamily includes three apartment communities with a total of 1,736 units. Last week, FCP and joint venture partner Avanti Residential announced the acquisition of Heights on Huron, a 252-unit garden-style apartment community in Northglenn, Colorado, for $55 million. In May, FCP, a private real estate investment firm that invests directly in or with partners in residential or commercial assets, formed a joint venture with BMC for the recapitalization of Ivy Crossing, a 1,023-unit community in Denver. BMC and Oak Coast Properties had acquired the property in 2019 in a $177 million portfolio transaction that included two neighboring communities, according to Yardi Matrix data. The Ivy Crossing recapitalization, which includes a $23 million capital renovation plan, marked FCP’s first multifamily investment in the state.

FCP vice president Bart Hurlbut said in a prepared statement that expanding the company’s Colorado portfolio with BMC strengthens its market position alongside an existing partner. He said the companies are planning a $12 million renovation program for the property, which will include upgrading units and common areas and improving several amenities.

BMC, a property investment manager, will continue to provide asset management and property management services to oversee the capital improvement program to reposition the property.

Jeff Stonger, chief investment officer at BMC, said in prepared remarks that the partnership with FCP is highly synergistic and allows the two groups to grow and expand into new markets and strategies together. He said BMC is focused on providing high quality, affordable housing options for the workforce. The association with FCP as a financial partner allows the company to execute this vision and to respect its commitment to the communities it owns.

More FCP offers

FCP has also been active in other markets over the past few months. In June, FCP and VaultCap Partners entered the Austin, Texas market with the purchase of Huntington Meadows, a 200-unit multi-family community. The deal marked FCP and VaultCap’s third purchase together in Texas and FCP’s 18e multi-family investment in the Lone Star State for the past four years.

Other recent acquisitions include a 245-unit garden-style apartment acquired in March in Largo, Maryland, and a 284-unit Class B community in San Antonio, Texas, which was purchased in May.

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