DB Capital Management has acquired Union Square Apartments, a 139-unit community in Provo, Utah. The purchase price was $16 million.
Los Angeles, CA (January 5, 2021) — 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 U.S. cities,” and it has been in the top three for five years. Between 2014 and 2019, the Provo and Orem metro area saw 20% 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 Co-Founder 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% 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.