print header

# 1 Commercial Real Estate Information Company

  • Find Properties 
  • Market Properties 
  • Analyze Properties 
Commercial Real Estate News

Starwood Sells Highlands Ranch Apts. for $112 Million

JLL Subsidiary LaSalle Investment Management Adds 422-Unit Community to Holdings
December 13, 2017
Chicago-based LaSalle Investment Management purchased a 422-unit apartment complex in Highlands Ranch, the company said this week.

LaSalle, a subsidiary of commercial real estate company JLL, paid $112 million for Legacy Highlands Ranch, according to CoStar data. The purchase was made on behalf of LaSalle’s core open-end real estate fund, LaSalle Property Fund.

"Legacy at Highlands Ranch offers tremendous stabilized value along with upside potential associated with a modest renovation program," said Jim Garvey, portfolio manager for LaSalle Property Fund. "This acquisition advances our investment strategy of owning high quality assets located within markets that have a healthy demand/supply balance."

LaSalle paid $265,402 per unit for the property.

Legacy Highlands Ranch was built in 1999 at 355 W. Burgundy St. and acquired by Connecticut-based Starwood Capital Group as part of a $5.4 billion nationwide portfolio buy from billionaire real estate mogul Sam Zell in early 2016.

Starwood bought approximately $1.4 billion worth of apartments in metro Denver as part of that acquisition, and is busy "right-sizing" its portfolio here, said Terrance Hunt, vice chairman with ARA, A Newmark Company, which listed Legacy at Highlands Ranch, along with Shane Ozment, Amanda Meldrum and Courtney Crowder, for Starwood.

Starwood has already sold a few of the properties it acquired from Zell, and has another deal in the works.

The listing brokers fielded 30 offers for Legacy at Highlands Ranch, Hunt said, because of the location of the asset in a suburb of Denver with a reputation for good schools and demographics. Timing helped as well, said Hunt, with the deal occurring at the end of the year at a time when many equity funds are looking to spend the last of their capital.

Legacy at Highlands Ranch is one of just a few properties of comparable size in the area, Hunt said.

LaSalle expects the property to benefit from a planned expansion of RTD’s light rail system into Highlands Ranch, and its proximity to the busy intersection of Lucent Blvd. and C-470. Additionally, as density and housing costs have increased in Denver’s core, the suburbs have grown in population in recent years.

"The Denver suburbs have experienced significant demographic tailwinds in recent years, which has benefited property fundamentals and led to market outperformance," said Summit Walia, managing director of acquisitions for LaSalle.

"While there is a fair amount of supply set to deliver in downtown Denver, very little is underway in the top suburban areas, and we feel confident this high-quality asset is well-positioned for continued strong performance."

For more information on this transaction, please see CoStar Comp #4068336.

Molly Armbrister, Denver Market Reporter  CoStar Group   
GET IN TOUCH        Contact CoStar News Team:

 Find us on 

Welcome To CoStar's
Award-Winning News

Winner of three Journalism Awards from the National Association of Real Estate Editors (NAREE)

Award-Winning News