Castle Lanterra Properties (CLP) recently sold Stratus Townhomes in northwest Denver’s Westminster to one of the country’s original community developers, Klingbeil Capital Management, for $85 million. Acquired by CLP in November 2017, Stratus Townhomes is a 36-building 280-unit townhome community, a rarity in the market. The community consists of 140 two-bedroom units and 140 three-bedroom tri-level homes with private entrances.

“Although we believe there remains tremendous upside at this outstanding property, CLP far exceeded our 10-year IRR projections for Stratus Townhomes in less than four years,” said Elie Rieder, founder and CEO of CLP. “Our relationship with Klingbeil Capital goes back many years and we believe they will continue to add value to this unique asset.”

Following its acquisition of the residential community, CLP invested in a number of major capital improvements and a value enhancement program which included unit renovations with varying scopes and reconfigurations that resulted in significant rent premiums.

The average square footage of 959 for the two-bedroom and 1,166 for the three-bedroom units, not including approximately 450 square feet of additional space in the basement, is a rarity in the metro Denver apartment market.