Nelson Partners Student Housing, a sponsor of 1031 tax deferred exchanges, has sold Auraria Student Lofts located in downtown Denver, Colorado for an undisclosed sum.
Auraria Student Lofts is a 30-story, 125-unit student housing property with 438 beds. The property starts on the 15th floor of a hotel and services Metropolitan University and several other universities in the Denver metropolitan area.
Nelson Partners noted that following a five-year hold period, the sale of the Auraria property resulted in 57 percent return on equity and more than a 45 percent return on cash flow, a 102 percent total return to investors. The company also reported an IRR of 16.20 percent.
The company said that since acquiring the property in 2014, its property management team increased revenues by nearly $200 per bed while leasing up to approximately 100 percent every year.
“Auraria has been a tremendous success considering the unique structural layout and the real challenges of making it all come together…,” said Patrick Nelson, founder and chief executive officer.
This is the sixth major transaction for Nelson Partners since their inception in 2018. The firm manages 21 properties in 11 states, with more than $700 million in assets under management, and includes a ground-up development company and an on-site property management team at every property in its portfolio.