Security Properties Acquires Highlands At Red Hawk Apartment Community In Castle Rock, Colorado
Security Properties purchased Highlands at Red Hawk, a 56-unit, Class-A, garden-style apartment community located in Castle Rock, CO for $16,500,000. Security Properties now owns 12 assets in Colorado totaling 2,393 units. The asset is a Class-A, garden-style apartment community constructed in 2018. The asset consists of 56 units spread out across five residential buildings and 4.55 acres. The units feature a variety of large, townhome style floor plans with direct-access garages, designer backsplashes, granite countertops, stainless steel appliances, in-unit, full-size washer/dryers and walk-in showers with custom tiles. Additionally, the property offers a comprehensive amenity package including a swimming pool, a small clubhouse, and a dog wash station.
Located in Douglas County – the 5th wealthiest county in the U.S. – Castle Rock is most notably recognized for its concentration of families, rolling hills, and quiet feel, despite its proximity to an otherwise booming market. Geographically, Castle Rock is distinctive in that it represents the median between Denver and Colorado Springs, the two biggest population centers in Colorado. Between Castle Rock and Denver lies the Southeast Business Corridor, home of 260,000+ employees sprawling 42 million square feet of office space.
Castle Rock has experienced incredible population growth over the past decade. From 2010 to 2018, Castle Rock's population grew by 39%, adding over 18,000 people and outpacing the tremendous growth seen elsewhere in the Denver MSA. Recently named the 10th fasted growing city by Livibility, Castle Rock is expected to grow an additional 34% by 2030 within a one-mile radius of the property. Notable in this growth is the presence of families. Per the U.S. Census Bureau, the average household size is 2.76, with a median age of 34. 65% of the households are represented by married couples, and ~45% have children.
Per Tad Johnson, Senior Investment Manager at Security Properties, "The Highlands at Red Hawk is a quality addition to our growing Colorado portfolio. The boutique-size of the Property provided a unique opportunity for a long-term investment in an attractive location. This asset will be wholly-owned by Security Properties, and Castle Rock remains a target submarket for future investment."
The property will be managed by Security Properties-affiliate Security Properties Residential.