Greenwood Village-based has raised more than $250 million from investors, money it will use to purchase apartment communities in Colorado, Texas and Washington.
The fund, the third raised since the company launched in its current form back in 2004, is larger than the previous two funds combined, reflecting both the popularity of multi-family investing and the willingness of previous investors to re-up for another round.
“We are focused on markets where there are growing millennial populations and strong innovation hubs,” said David Birnbaum, the company’s CEO.
The third fund will expand the company’s geographic reach versus the two earlier offerings, which focused on the Front Range and picked up some bargains in Las Vegas during the downturn.
Late last year, Griffis started spending some of the money as it was being raised. So far, it has purchased three communities in Austin, Texas, with 1,040 apartments and two in Denver with 472 units.
It has an acquisition underway in Seattle and has raised enough to buy about 4,000 apartments in total.
“As our unit count in Denver grows, we don’t want to be entirely reliant on a single market,” Birnbaum said.
Metro Denver has outpaced most of the nation
The company focuses on higher-quality communities built between the late 1990s and mid-2000s that are in need of a “refresh.” “The floor plans and amenities are competitive with newly constructed product,” Birnbaum said.
By managing the properties it owns, Birnbaum said, the company can improve the experience of its tenants, further boosting the financial performance and value of its holdings.
Greg Willett, vice president of research and analysis at MPF Research in Carrollton, Texas, said Denver, Seattle and Austin represent attractive markets for multi-family investment. “However, they aren’t under-the-radar choices, so pricing can be high for both acquisitions and new development,” he said.
New apartment construction in those three markets could result in certain neighborhoods not performing as well as new units get absorbed.
At the same time that Griffis Residential is buying, it is also selling apartment communities it had acquired previously so earlier investors can cash out.
The firm, headed by Ian Griffis, Tom Barta and Birnbaum, owns more than 6,000 apartments, including nearly a dozen communities in metro Denver and two in Colorado Springs.
Aldo Svaldi: 303-954-1410, asvaldi@denverpost.com or twitter.com/aldosvaldi
