HANSAINVEST Real Assets acquires apartment complex for USD 63 million in Denver, Colorado

  • Denver offers attractive conditions for investments in residential property
  • HANSA US Residential investment volume climbs to USD 110 million

HANSAINVEST Real Assets GmbH has acquired an apartment complex in Denver in the US state of Colorado for its special fund “HANSA US Residential”. The total investment amounts to around USD 63.4 million. The property is called “Escape at Ken Caryl” and is located around 30 minutes by car from the centre of Denver in the sub-market Jefferson County. The complex comprises 250 apartments in total, shared between 15 individual buildings. The properties were built in 2015 in what is known as the garden style. The transaction is the fund’s second purchase. Together with the first property acquisition in Atlanta, the fund’s investment volume now amounts to around EUR 110 million.

Nicholas Brinckmann, Managing Director of HANSAINVEST Real Assets, says: “Denver is a very attractive market for residential investments and the most important business location in Colorado with a population of three million. Denver’s population has been growing by between 1.5% and 2.0% a year for ten years, twice as quickly as the US average. Rents have been rising in line with the population growth, in some cases significantly. In 2014 and 2015, the apartment segment in Denver saw rent increases of 8.8% and 9.7% respectively. The research company Axiometrics forecasts a rise of 4.1% for 2018 and 3.4% for the years 2019 to 2021.”

In addition, Denver is known as the corporate centre of the Rocky Mountains region. The city offers a high quality of life and a good seasonal climate. The New York Times recently singled out Denver as the ideal location for Amazon’s future second headquarters. “We remain convinced of the attractiveness of investments in US residential properties. In the long term, the positive development of the fundamental economic and demographic data speaks clearly for investment in this segment,” says Brinckmann.

Bell Partners (Bell) was the local partner. Bell is a residential property investment and management company focused on high-quality multi-family houses throughout the USA. Bell currently has more than 60,000 residential units under management. Bell has concluded over USD 10 billion of transactions since 2002 – including almost USD 1.5 billion in 2015 alone.

“HANSA US Residential” is an open-ended real estate special AIF in accordance with the German Capital Investment Code (KAGB). The fund is administered by the affiliate HANSAINVEST Hanseatische Investment-GmbH. The target fund volume is USD 1 billion; equity is set to amount to around USD 500 million. The distribution yield for investors is forecast at 4.5% p.a. HANSAINVEST pursues a buy-and-sell strategy and intends to hold the purchased properties for at least five to seven years.