BMC Recapitalizes One of Denver’s Largest Workforce Housing Portfolios

Denver-based BMC Investments recently recapitalized a three-property portfolio of workforce housing apartment communities – Landon Park, Aurora Hills and Vista Park – with a fund managed by New York-based DRA Advisors. The recapitalization will be one of BMC’s largest with an institutional capital group, further establishing BMC within the institutional markets. And, the portfolio encompasses 1,346 total units, marking one of the largest workforce housing transactions in Denver in the last 18 months.

“This transaction is just the first step of a larger programmatic strategy with DRA to execute on a workforce housing strategy targeting in excess of $500 million in deals together,” said Jeff Stonger, chief investment officer of BMC Investments.

BMC will retain property management and oversight of a $12 million renovation plan while continuing to operate the properties.

“These assets are primed to capture value-add upside via the continuation of the interior unit renovation plan and the strong fundamentals of the overall Denver market and submarket,” said Brett Gottlieb, managing director of DRA Advisors.

All three properties in the portfolio are located in Aurora. Aurora Hills is the largest of the three properties with 600 units, followed by Landon Park with 464 and Vista Park with 282. The three-year renovation plan will make improvements to both the interiors and exteriors of each property. Dustin Stolly and Jordan Roeschlaub of Newmark arranged the recapitalization on behalf of DRA and BMC. Stolly and Roeschlaub, in partnership with Blake Okland, executed the collaborative effort under Newmark’s strategic transactions group.