Multifamily investment firm DB Capital Management has made its largest investment in Austin to date, acquiring a three-property apartment portfolio totaling 422 units. The properties in North Austin were built between 1980 and 1984 and are located within a 1.5-mile radius from one another at 1200 Mearns Meadow, 1804 Rundberg Ln. and 1735 Rutland. Occupancy across the portfolio was 95% at closing.
Since entering the Austin market in 2018, DB has grown its local portfolio to 724 units and plans to continue building scale over the next 12-18 months, said Hunter Graul, VP of acquisitions, who heads the firm’s Austin office.
“The portfolio’s proximity to our other assets in North Austin, combined with our growing influence in the market, provides us an opportunity to achieve synergy through economies of scale,” said Graul.
CBRE’S Michael Wardlaw, Charles Cirar and Colin Cannata marketed the property for the undisclosed seller.
Author: Unknown
Source: Connect Texas
Multifamily investment firm DB Capital Management has made its largest investment in Austin, Texas with the acquisition of a three-property apartment portfolio totaling 422 units.
The properties located in North Austin were built between 1980 and 1984 and range in size from 130 to 160 units. Each is located within a 1.5-mile radius from one another at 1200 Mearns Meadow, 1804 Rundberg Lane and 1735 Rutland. Occupancy across the portfolio was 95 percent at closing.
Since entering the Austin market in 2018 DB Capital Management has grown its local portfolio to 724 units with plans to continue to build scale over the next 12-18 months, according to DB Capital Management Vice President of Acquisitions, Hunter Graul who heads the firm’s Austin, Texas office.
“The portfolio’s proximity to our other assets in North Austin, combined with our growing influence in the market, provides us an opportunity to achieve synergy through economies of scale,” said Graul. “We are bullish on the long-term outlook for Austin, particularly North Austin, which is one of the last remaining affordable suburban infill markets in the city. We will continue to seek compelling opportunities and plan to increase our portfolio in the market with a goal of acquiring an additional 500 to 1,000 units over the next year-and-a-half.”
After curing substantial deferred maintenance issues DB Capital will begin a multimillion-dollar capital improvement program across the portfolio, which will include exterior renovations and a complete amenity overhaul, with the addition of playgrounds, dog parks and new landscaping. Unit interiors will also receive significant upgrades including stone countertops, updated plumbing and lighting fixtures, new cabinet fronts, and new vinyl plank flooring and carpets. Renovations, which will be made as units roll, are expected to be completed over the next two years.
Over the past two months, DB Capital Management has acquired approximately $100 million in multifamily assets located in selected high-growth markets in the Western United States, having recently closed on assets in Denver, Colorado and Provo, Utah.
“We have a robust pipeline of deals and are expecting to close on our next multifamily property in Salt Lake City later this quarter,” added company Co-founder and CEO Brennen Degner.
Michael Wardlaw, Charles Cirar and Colin Cannata of CBRE marketed the property on behalf of the seller.
Author: News
Source: Yield Pro
Multifamily investment firm DB Capital Management has made its largest investment in Austin, TX with the acquisition of a three-property apartment portfolio totaling 422 units.
The properties located in North Austin were built between 1980 and 1984 and range in size from 130 to 160 units. Each is located within a 1.5-mile radius from one another at 1200 Mearns Meadow, 1804 Rundberg Lane, and 1735 Rutland. Occupancy across the portfolio was 95% at closing.
Since entering the Austin market in 2018 DB Capital Management has grown its local portfolio to 724 units with plans to continue to build scale over the next 12-18 months, according to DB Capital Management Vice President of Acquisitions, Hunter Graul who heads the firm’s Austin, TX office.
“The portfolio’s proximity to our other assets in North Austin, combined with our growing influence in the market, provides us an opportunity to achieve synergy through economies of scale,” said Graul. “We are bullish on the long-term outlook for Austin, particularly North Austin, which is one of the last remaining affordable suburban infill markets in the city. We will continue to seek compelling opportunities and plan to increase our portfolio in the market with a goal of acquiring an additional 500 to 1,000 units over the next year-and-a-half.”
After curing substantial deferred maintenance issues DB Capital will begin a multimillion-dollar capital improvement program across the portfolio, which will include exterior renovations and a complete amenity overhaul, with the addition of playgrounds, dog parks and new landscaping. Unit interiors will also receive significant upgrades including stone countertops, updated plumbing, and lighting fixtures, new cabinet fronts, and new vinyl plank flooring and carpets. Renovations, which will be made as units roll, are expected to be completed over the next two years.
Over the past two months, DB Capital Management has acquired approximately $100 million in multifamily assets located in selected high-growth markets in the Western United States, having recently closed on assets in Denver, CO, and Provo, UT.
“We have a robust pipeline of deals and are expecting to close on our next multifamily property in Salt Lake City later this quarter,” added company Co-founder and CEO Brennen Degner.
Michael Wardlaw, Charles Cirar, and Colin Cannata of CBRE marketed the property on behalf of the seller.
Author: Unknown
Source: Multifamily Press
DB Capital Management Buys Aging Property, Plans Improvements
Union Square Apartments, a 167-unit property built in 1991, sits in Provo, Utah. (DB Capital Management)
Los Angeles investment rm DB Capital Management acquired its first apartment property in Provo, Utah, a small city about 40 miles south of downtown Salt Lake City
where tech companies have grown in recent years. DB Capital Management said it bought Union Square Apartments, a 167-unit apartment
property at 424 N. 300 E, for $16 million. Union Square Apartments sold the property, 1/29/2021 Los Angeles Investor Enters Multifamily Market in Tech-Rich Provo, Utah which was built in 1991, according to CoStar research.
The sale price equates to roughly $95,808 per unit, which is almost half the city’s average multifamily sale price of $180,000 per unit, according to CoStar research.
“Union Square Apartments represents a unique opportunity to acquire a 1990s vintage asset at a significant discount to replacement cost,” Brennen Degner, co-founder, and CEO of DB Capital Management, said in a statement.
DB Capital Management is planning capital improvements to “bring the property up to market standards,” according to the statement. While DB Capital Management owns approximately 300 apartment units in Salt Lake City, this investment marks the company’s first acquisition in Provo. While not within the Salt Lake City metropolitan area, Provo benefits from its relative proximity to the city, as well as from Utah’s business-friendly climate. “The Provo and Salt Lake metros consistently ranked among the top locations nationally to start or expand tech businesses,” Megan Cambon, a market analyst with CoStar Group, writes in a recent report.
Some major tech companies that have expanded into Provo include Ancestry.com, eBay, Adobe and Qualtrics, according to CoStar research. The city is also home to Brigham Young University, which has a student population of roughly 33,000, 80% of whom live in off-campus housing, according to CoStar research. Union Square Apartments sits less than a mile away from BYU’s campus.
Author: Cara Smith-Tenta
Source: CoStar
Provo— Multifamily investment firm DB Capital Management has closed the acquisition of Union Square Apartments, a 139-unit community in Provo, Utah, for $16 million.
While DB Capital Management currently owns approximately 300 units across multiple properties in Salt Lake City, Union Square Apartments, located at 424 North 300 East, is the company’s first investment in Provo.
In 2018, The Milken Institute ranked Provo as the “best performing economy among big US cities,” and it has been in the top three for five years. Between 2014 and 2019, the Provo and Orem metro area saw 20 percent job growth.
DB Capital Management has been investing in secondary and tertiary markets since it was founded in 2017 and Union Square Apartments is a continuation of that strategy. As people have left major coastal cities for more space and affordability, this investment approach is gaining popularity among other investors.
“Our first investments were in Utah more than three years ago and the state remains one of our primary investment targets,” said DB Capital Management managing partner and cofounder Devin Antin. “We will continue to build scale in Provo and Salt Lake City with a goal of increasing our holdings to more than 1,000 units by the end of 2022.
Union Square Apartments, built in 1991, consist of four two- and three-story buildings and one single-family home. Common area amenities include swimming pool, on-site laundromat, barbecue areas and covered parking. The property, which is 99 percent occupied, sits three blocks from Brigham Young University (BYU).
“Union Square Apartments represents a unique opportunity to acquire a 1990s vintage asset at a significant discount to replacement cost in one of the highest performing student submarkets in the nation,” added DB Capital Management Co-Founder and CEO Brennen Degner. “Union Square is one of the closest apartment properties to BYU’s campus making it one of the best options for married students, which represents 30 percent of the 33,000 students attending the university. Union Square enjoys an unbeatable market position within the Provo housing market.”
DB Capital Management plans to increase NOI at Union Square through a hands-on management approach and drive prospective renter volume through a targeted marketing plan that includes capital improvements to the common areas, and unit and exterior upgrades to bring the property up to market standards.
DB Capital Management acquired the property in an off-market deal, leveraging relationships from previous deals to secure the asset.
About DB Capital Management
DB Capital Management (http://www.dbcap.com) is a vertically integrated real estate investment group based in Playa Vista, CA. DB Capital Management focuses on owning and operating multifamily property in strategically targeted submarkets across the United States. The DB Capital Management strategy revolves around a hands-on approach to acquisitions and asset management, coupled with an extensive understanding of each target investment submarket, which leads to maximum revenue generation and subsequent value.
Author: Unknown
Source: Utah Business
JLL announced today that it has closed the $34.1 million sale of Terra Murrayhill, a 137-unit, garden-style apartment community located in Beaverton, Oregon.
JLL marketed the property on behalf of the seller, a West Coast-based investor, and procured the buyer, DB Capital Management.
Terra Murrayhill is located near major tech employers within what is known locally as the “Silicon Forest.”
The property, which sits on approximately nine acres at 14305 SW Sexton Mountain Drive, is also close to the Beaverton Transit Center providing residents with connectivity to downtown Portland, Hillsboro and the Portland International Airport. The community comprises 15 residential buildings that house a mix of one-, two- and three-bedroom units averaging 891 square feet. Originally constructed in 1985, Terra Murrayhill has recently undergone $3 million in renovations and capital improvements. In addition to the newly upgraded clubhouse, common area amenities include an outdoor pool, hot tub, grilling area, fitness center, business center, dog park, detached garages and direct hiking trail access.
The JLL Capital Markets team representing the seller was led by Senior Managing Director Ira Virden, an Oregon-licensed real estate salesperson, and Senior Director Carrie Kahn. The DB Capital Management team was led by Vice President—Northwest Region Daniel Terranova, who brings a decade of experience in real estate with a specialty in acquisitions and asset management.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients—whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
Deal secured by Holliday Fenoglio Fowler LP (“HFF”) prior to being acquired by JLL on July 1, 2019. Co-brokerage services provided by Jones Lang LaSalle Americas, Inc
Author: Unknown
Source: Apartment Careers
DB Capital Management has acquired Red Owl Apartments, a 46-unit community in Denver, for $16.2 million. The transaction marks the firm’s entry into the market. According to public records, the buyer financed the deal with a $10.5 million acquisition loan.
Located at 90 S. Logan St. in West Wash Park, a large residential neighborhood, Red Owl is within 2 miles of downtown Denver. The neighborhood sits at the western gateway of the 165-acre Washington Park and features a wide variety of local restaurants and boutiques. Built in 2018, the community comprises studio, one-, two- and three-bedroom apartment homes. The new owner plans to rebrand the asset as Summit at Wash Park and renovate the common areas and unit interiors.
Andy Hellman, Justin Hunt and Katie Hufnagel of Newmark brokered the transaction, while David Treadwell arranged acquisition financing. Recently, Hunt, Hellman and Hufnagel were also involved in another Colorado deal. The trio represented the seller of Henley & Remy, an 82-unit community in Boulder that traded for more than $32 million.
Author: Sergiu Inizian
Source: MHN Multi-Housing News
A $16.2 million apartment purchase in West Washington Park is just the beginning for a multifamily investment firm with an aggressive growth target for the Denver metro.
Brennen Degner, co-founder and CEO of Playa Vista, California-based DB Capital Management, said his firm aims to own 1,000 apartment units in the Denver area by the end of 2022.
DB Capital Management began making headway toward that goal in October with the purchase of Red Owl Lofts, a 46-unit apartment community at 90 S. Logan St.
The deal, which marks the first Denver transaction for the three-year-old firm, isn’t entirely indicative of the types of properties it’ll be eyeing in the future, Degner said. DB Capital Management will likely seek out larger value-add properties in the multifamily segment as it expands its Denver portfolio, according to Degner.
But Degner said the Red Owl deal provided an opportunity to grab a foothold in the market.
“It’s on the smaller side for what we would focus on now,” Degner said. “But we just saw it as a great play.”
DB Capital Management has so far notched roughly $150 million in acquisitions across its target markets, and currently has about 1,000 units under management, Degner said. The firm aims to quadruple that number over the next four years.
The firm is focused on markets that have seen significant increases in tech employment and rank highly in terms of quality of life, Degner said. Red Owl is the latest addition to a portfolio that includes properties in Austin, Salt Lake City, Los Angeles and Portland. Phoenix and Dallas could be future target markets as well, Degner said.
Degner, who was born and raised in the Denver area before attending college in Arizona and later moving to California, has watched the “explosion” in the Denver market for years now, he said. About a year ago, the firm hired regional vice president Darren Hulick to lead acquisitions in the area.
“There’s a lot about the fundamentals of Denver that we really like,” Degner said. “Despite the huge amount of construction deliveries over the past 10 years or so, it’s been able to keep up with absorption pretty well.”
Degner and co-founders Adam Barzilay and Devin Antin started DB Capital Management roughly three years ago after Antin’s father, the founder of VCA Animal Hospitals, sold his company to Mars Inc. for approximately $9 billion.
Antin and Degner had done a couple of small apartment deals together up to that point. But with Antin’s family office flush with capital after the sale, they decided to build a larger operation.
DB Capital Management has funded its deals with a combination of money from outside investors and the family office, Degner said, and focuses exclusively on multifamily investments.
Denver and Austin will be focal points for the firm’s growth over the next several years. DB Capital Management has similar targets for both cities, aiming to grow its Austin portfolio to 1,000 units by the end of 2022 as well, Degner said.
DB Capital Management doesn’t currently have any other properties in the Denver area under contract, but it has a sizable pipeline, Degner said. The market has been “very competitive,” Degner said, although he noted that activity has calmed in recent weeks after spiking roughly a month and a half ago.
The company will rebrand Red Owl Lofts as Summit at Wash Park and will embark on a renovation that will include improvements to common areas as well as the interiors and exteriors of the studio, one-, two- and three-bedroom units over time.
“The current rents demonstrate a sizeable spread against new luxury product in the market and provide renters with an affordable, upscale option in one of Denver’s most desirable neighborhoods,” Hulick said in statement.
The off-market transaction was arranged by Justin Hunt, Andy Hellman and Katie Hufnagel of Newmark Colorado. David Treadwell of Newmark arranged the acquisition financing.
Author: James Rodriguez
Source: Denver Business Journal
Brennen Degner, 29
D & B Capital Partners and Arrowroot Real Estate in Santa Monica are real estate-focused private equity groups, while D & B Properties provides property and construction management services.
Employees: 10
Financials: $50 million-plus in assets under management. Targeting $350 million assets under management in 18 to 24 months through various capital commitments recently received.
What led you to start this business?
A burning need to build a life of personal and financial freedom led me to start my first business.
How did you fund it, and how are you funding it going forward?
The first six projects that I did on the side while working full time were funded through syndicating money from friends, and getting commitments from DRA Enterprises, a small real estate investment fund led by Devin Antin. Now we source capital through high net worth individuals, family offices and institutional investors.
Are there advantages/disadvantages to starting a business in your 20s, and if so, what are they?
An advantage is a higher level of flexibility in your time and your ability to recover and learn from mistakes. You also can take more risks financially because you do not have anyone but yourself depending on you for income. A disadvantage is you tend to lose the ability to learn from other people’s mistakes (i.e. working for another company).
Do you have a mentor?
My parents, Mark and Marilyn Degner, showed me what it meant to work harder than the next person in pursuit of my goals. My former boss, Mark Weinstein of MJW Investments, taught me how to leverage my time and the resources around me, and the importance of delegation to operate at maximum efficiency.
Where do you go for advice regarding your business?
My network of resources and mentors. I have had a lot of success in turning back to professors I had from my time at USC’s Master of Real Estate Program.
Where do you go for professional services (legal help, accounting, etc.)?
At a high level my go-to legal is Kramer Holcomb Sheik and my go-to CPA is Simantob & Associates, Inc.
How much time/money do you spend on social media for your business?
At a corporate level, we spend very little money or time on social media. However, at the property level, social media has become an integral part of the marketing program for sales and leasing.
Does social responsibility play a role in your business?
All properties undergo an overhaul at acquisition to improve the efficiency of water and electrical consumption to reduce each asset’s environmental footprint.
Do you feel that your business is particularly tailored to the Los Angeles market, or do you feel you could have launched it in another location?
We have a national investment focus that has brought us into many markets outside of Los Angeles, so we haven’t had issues getting out of just the Los Angeles market.
Do you encounter skepticism from investors because of your age, and if so, how do you handle it?
We encounter similar barriers to entry in terms of access to capital that other new organizations do.
What do you do for fun?
Basketball, flag football, snowboarding and mountaineering. I also grow our ancillary non-real estate businesses, most notably our wine label Dear Rosé.
Author: NA
Source: Los Angeles Business Journal
Multifamily investment firm DB Capital Management has closed the acquisition of Red Owl Apartments, a 46-unit community in Denver, CO for $16.2 million, marking the firm’s entry into the Denver market.
DB Capital Management plans to aggressively target multifamily acquisitions in Denver as it continually ranks as one of the best places to live in the U.S. and has been one of the top performing multifamily markets during the COVID-19 pandemic, according to DB Capital Management Co-founder and CEO Brennen Degner.
“We are targeting extensive growth in this market with a goal to own 1,000 units in the Denver metro area by the end of 2022,” said Degner, who was born and raised in Denver. “Red Owl is an award-winning asset in an exceptional location that we were able to acquire below replacement cost. We have the ability to increase revenue through hands-on property management and a focused renovation plan.”
Built in 2018, Red Owl Apartments is located at 90 S. Logan Street in West Wash Park, one Denver’s most livable and sought-after residential neighborhoods. West Wash Park is characterized by its eclectic mix of housing options as well as a wide variety of local restaurants, boutiques and parks. The approximately one-square mile neighborhood sits at the western gateway of its namesake 165-acre Washington Park, considered by locals to be Denver’s Central Park. It is also within a 10-minute drive of the city’s most popular shopping and business districts including Old South Pearl Street, Cherry Creek, Old South Gaylord Street and Downtown Denver.
DB Capital Management will rebrand the asset as Summit at Wash Park and will immediately begin a renovation that will include common area improvements, as well as interior and exterior upgrades to the studio, one-, two- and three-bedroom apartment homes as units roll. The improvements are aimed at driving desirability and tenant retention to support stable revenue growth, added Regional Vice President Darren Hulick who leads the Denver acquisition team.
“The current rents demonstrate a sizeable spread against new luxury product in the market and provide renters with an affordable, upscale option in one of Denver’s most desirable neighborhoods,” said Hulick.
The off-market transaction was arranged by Justin Hunt, Andy Hellman and Katie Hufnagel of Newmark Knight Frank, Colorado. David Treadwell of Newmark Knight Frank arranged the acquisition financing.
In addition to Denver, the firm is also targeting multifamily investments in Austin, Salt Lake City, and Portland.
Author: Unknown
Source: Multifamily Press