The Fletcher Southlands_Property for Sale

22959 E Smoky Hill Rd, Aurora, CO, 80015-6702, US

The Fletcher Southlands

Asset description

JLL has been retained as the exclusive investment advisor in the sale of the Fletcher Southlands Apartments (“Fletcher”), a 320-unit multi-housing asset built in 2001 and located in Denver’s affluent Southlands submarket. The acquisition of Fletcher presents the opportunity to acquire a proven value-add asset with the ability to complete in-unit renovations to 68% of the property. Additionally, Fletcher features expansive floorplans averaging ± 1,100 SF and 9’ unit ceilings across a low density environment (14 units/acre).

Originally completed in 2001, Fletcher’s reputation as an established property in a high-demand submarket presents the thesis to add value through the standardization of in-unit renovations across the property. Targeting 68% of units (classic and partial finish scopes) bringing them in-line with current ownership’s premium renovation finishes consisting of: single height quartz countertops, stainless-steel appliances, modern vinyl-plank flooring, updated lighting/plumbing fixtures, new cabinet fronts with matte black hardware, undermount kitchen sinks and subway tile backsplash. Implementation of this campaign will allow Fletcher to more effectively compete with recently renovated and newly completed assets within the area. Rents at Fletcher are ± $200 below newer or recently renovated competition, on average.

Situated along East Smoky Hill Road and adjacent to E-470, the location provides excellent transportation linkages and convenient access to major employment hubs throughout the metro area. Furthermore, residents benefit from ease of access to multiple recreational amenities including a plethora of shopping, dining and entertainment options all proximate to the asset. These property level and locational characteristics pair well with the strong demographics surrounding Fletcher, with an average home price and household income of ± $685K and ± $190K (within a three-mile radius), respectively. The asset’s placement within the highly ranked Cherry Creek School District, will continue to serve as a catalyst for resident demand at Fletcher while simultaneously creating a sticky existing resident base as the growing sentiment of “renting for longer” has solidified across the metro area.

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Attributes

Units

320

Occupancy

92%

Year built

2001

Building area net

350,700 sf

Land area gross

23.13 acres

Media

Investment highlights

ATTRACTIVE VALUE-ADD OPPORTUNITY

Current ownership has completed a strategic unit interior renovation campaign to 105-unts (33%) at the property. The opportunity exists for new ownership to further renovate the balance of 215 units (67%) across the property closing the rental gap between Fletcher and newly delivered or recently renovated product in the submarket.

UNIQUE DIFFERENTIATED LOW-DENSITY PRODUCT

Fletcher’s 23+ acre footprint provides a low-density environment (± 14-units/acre) away from much of the hustle and bustle of city life. Furthermore, the large unit floorplans at the property, averaging ± 1,100 SF, promotes a market differentiating offering that drives resident retention while serving as a catalyst for new

high-quality tenancy.

WELL-LOCATED SUBURBAN ASSET

Fletcher’s positioning adjacent to E-470 provides convenient access to many of Denver’s largest employment hubs including the Southeast Business Corridor, Fitzsimons Medical District, Denver International Airport, Centennial Airport, and Buckley Air Force Base. The property’s ideal location is also centered around major recreational entertainment and lifestyle destinations such as; Southlands Town Center (1.8M SF), Park Meadows Mall (4.7M SF), Cherry Creek State Park, Aurora Reservoir, Saddle Rock Golf Course and more.

CHERRY CREEK SCHOOL DISTRICT (“A” NICHE RATING)

Fletcher is located within the renowned Cherry Creek School District, consistently ranked as one of the best school districts in Colorado. Cherry Creek schools have an average on-time graduation rate of 91%, exceeding the state average of 84%. The school district has historically served as a significant draw for both existing and new Colorado residents.

AFFLUENT DEMOGRAPHIC LOCATION DRIVES AGENCY MISSION FINANCING

Average housing values and household incomes within a three-mile radius of the property exceed $684K and $190K, respectively. These elevated for-sale housing prices and strong household income averages in the area, continue to promote the growing sentiment of “renting for longer” allowing for significant future rental pricing power. In turn, boasting significant naturally occurring affordability positioning the asset as a strong candidate for mission driven financing via the agencies.