Pensam announced that it recently closed on a preferred equity investment to facilitate the acquisition of a 600-unit multifamily community located in Denver, CO. Pensam’s preferred equity investment was structured behind Freddie Mac senior debt financing. The sponsor, a repeat Pensam client, is an experienced California-based real-estate investment firm focusing on core-plus and value-add real estate acquisitions across the United States.
“Pensam is excited to work with this sponsor on another transaction and further expand its presence into the Denver Metro area with this preferred equity investment,” said Michael Stein, founding partner of Pensam.
The multifamily community is located on a 48-acre low density site in southeast Denver, just north of the I-225/I-25 junction and within five minutes of the Denver Tech Center, the largest employment center in the Denver Metro. The property was constructed in three phases between 1970 and 1974, and features two and three-story buildings with seven unique floorplans consisting of one, two and three-bedroom units. The previous owner commenced renovations on select units, with upgraded units featuring stainless steel appliances, faux wood flooring, private balconies or patios, and walk-in closets. Property amenities include a free-standing clubhouse, business center, dog park, fitness center, heated swimming pool, basketball court, volleyball court, sports fields, playground, splash park, dog park and picnic areas with grill stations. Pensam’s preferred equity investment allows the sponsor to allocate additional funding towards its capital improvement plan, focused primarily on amenity upgrades, as well as deferred maintenance.