After five years of trying, Seattle-based real estate investment firm Thayer Manca finally broke into the metro Denver market with the purchase of the 319-unit Highland Point Apartments, 16894 E. Arkansas Ave., Aurora.

“We’ve been a bridesmaid, but never a bride until now. The pricing has just gone nuts,” said Principal Joe Manca in an interview.

Thayer Manca out-bid 13 other competitors, from investors to real estate investment trusts (REITS), and landed the 1984-built development for $80.5 million, or about $252,000 per unit. It was one of 12 assets Hudson Capital sold nationwide in 2021.

“This complex sold in a shortened marketing process as a year-end close was a priority,” said Andy Hellman, part of the CBRE broker team that represented Hudson Capital, in a news release. “The bidding process was extremely competitive with 14 total offers, which also drove the pricing on this transaction.”

The company’s business model is to buy aged developments, infuse some capital, then hold if it keeps good cash flow or sell if the time/opportunity is right, Manca said.

“Last year, we refinanced three assets, 10-year notes from Fannie Mae with 2% interest keeps the cash flowing nicely,” Manca said.

Thayer Manca has bought more than 4,000 units in just over eight years, in markets like Washington, Oregon, Arizona, New Mexico – and now Colorado. It still holds 3,000 of those.

“Value-add is overused, but we’re definitely a value-add buyer,” Manca said. “There could be better management, we’re going to add washers and dryers into all units, renovate them and the common areas like the clubhouse. And even though it’s not a bad name, we’re going to rebrand.”

Things that drew interest in Highland Point was its central location south of Mississippi Avenue between E-470 and I-225. The property also sits within an employment center, with access to more than 340,000 jobs including Buckley Airforce Base, Denver International Airport, Aurora Town Center, and the Aurora Municipal Center, according to the news release.

“Interest cut across a number of entities, including local and national investors, private equity and public REITs. Demand for strategically located apartment properties in our region remains strong and has only increased as investors clamor for additional assets,” said CBRE’s Justin Hunt in the release.

Others on the CBRE team included: Kevin McKenna, Saul Levy, Katie Fergen and Jessica Graham. Thayer Menca represented themselves in the deal.

What attracted Thayer Manca do Denver – besides the obvious landlord’s market here with rising rents and lower-than-normal vacancy rates – is the “livability.”

Average rents in metro Denver stood at $1,726 at the end of the third quarter – the latest data available – and the vacancy rate was near a historic low at 3.8%, according to the most recent Denver Area Apartment Vacancy and Rent Survey report from the Apartment Association of Metro Denver.

“We like to know what it feels like to be there – to eat, drink and live there with all the exercise opportunities and hiking and biking trails,” Manca said. “We understand from Boulder down to Castle Rock – clearly greater Denver’s quality of life is so great. … If we don’t want to live there, why would someone else?”

The demographic of a younger, highly educated population that continues to grow, along with strong job growth, helped, too.

“Denver was one of the winners of COVID,” said Manca, pointing to the trend of workers choosing where to live with the increase of remote work.

The company plans to add to its Colorado portfolio with five or six more assets in coming years, Manca said.

“We’re going to chose a charity to donate to as we want to spend money and be in the community,” Manca said. “We’re going to do something to benefit children, especially children and housing. We prorate a portion of our profits to charity every year … We’re trying to create communities that are nice, safe, clean places for people to live. When you turn the key of that apartment door, you’re the king or queen of the castle.”