An affiliate of Oberndorf Real Estate Management, LP, formerly known as The Axton Group, and The Bascom Group, LLC have closed on the acquisition of Hearthstone at City Center, a 360-unit multifamily community located at 932 South Helena Way in Aurora, Colorado. The purchase price of $74 million equates to approximately $205,500 per unit. The seller was Independence Realty Trust, Inc., a Philadelphia-based real estate investment trust that acquired the property through its 2021 merger with Steadfast Apartment REIT.
Constructed in 1984 as a low-density community, Hearthstone comprises 41 buildings spread across 18.25 acres and features ample onsite outdoor space alongside a diverse mix of one, two and three bedroom floor plans. The community has been well maintained through numerous renovation programs over the years, with select units offering contemporary appliances, in-home washers and dryers, hardwood-style flooring, walk-in closets, fireplaces and private patios.
The property sits southeast of Aurora city center at a midway point between downtown Denver and Denver International Airport, just minutes from Interstate 225 and the Aurora Metro Center Station RTD Line, with a roughly 20 minute drive to downtown Denver. Residents can access hundreds of thousands of employment opportunities within a 20 minute commute, including the Fitzsimons Medical Campus, Buckley Space Force Base, Denver International Airport, the Denver CBD, the Denver Tech Center and Cherry Creek. The location also offers strong quality of life access through a diverse selection of shopping, dining and retail nearby, plus outdoor recreation across Aurora’s many parks, in-town trails and reservoirs.
Hearthstone marks Bascom’s 37th acquisition in the state of Colorado and its 10th in the city of Aurora. Jim Singleton, Bascom’s Senior Vice President and Principal of Acquisitions, noted that the firm was thrilled to make another multifamily investment in Aurora and Colorado, pointing to Bascom’s long history of owning and operating in the market. To date, Bascom has invested $1.5 billion in Colorado, with a current state portfolio exceeding 12,000 units.
Peter Oberndorf, Managing Director at Oberndorf Real Estate Management, said both firms like Colorado overall given its moderate regulatory and business-friendly environment. While the greater Denver area has seen some softening in rents due to elevated supply deliveries, both partners remain positive on the long-term trajectory of the Aurora submarket and the broader region, noting that new supply will become harder to build given the higher interest rate environment and recent development restrictions.
The partnership plans to reposition the asset through improvements to operations and unit interiors, along with upgrades to common areas including the fitness center, leasing office and pool. Paul Zakhary, Bascom’s Senior Vice President of Portfolio Operations, said the strategy is designed to make Hearthstone a top choice among multifamily product in the immediate area.
This transaction represents the third multifamily deal between Bascom and Oberndorf. Oberndorf Real Estate Management, LP is a privately held investment management firm based in San Francisco focused on value-add and opportunistic real estate and real estate related assets in the United States and Canada, prioritizing opportunities with strong current cash flow and capital appreciation alongside a focus on capital preservation.