Pro Angle Construction Colorado Springs apartment market is making a strong comeback, with recent sales showing up and new construction starting.
Large investors outside the region recently bought large multifamily properties in Colorado Springs
In October, New York’s Sequoia Property Partners closed the 112-unit apartment complex in Southern Circle Arms, built in 1969, with all the buildings having received several new upgrades over the past five years, including new 30-year roofs. A door with a purchase price of 5.4 million has produced a value of just over 48,000.
Another October purchase of the Rustic Hills Park apartment was one of the last major mishaps in Colorado Springs. The 243-unit property is valued at more than 17,000 per unit, or 4.2 million.
The new owner, Lakewood’s construction Asset Group, CO, will have to resolve a backlog of delayed maintenance. A lower scholarship rate to stabilize the property. They have a successful track record of turning over failed assets. Which is why they select from 15 bidders for the proposal.
Florida-based real estate firm Advani bought 220-unit Brierglen apartments for 16.3 million, or 74,000 a door. They have announced plans to buy up to 2,000 units in the Denver and Colorado Springs markets. Colorado is a great state for investment. There will be a lot of job growth out there,” said Todd Linden, Chief Acquisition Manager.
At the end of September they bought Cheney Crossings apartments for 19.5 million, coming in at more than 85,000 per unit for 220 units.
Seagate Properties of California now has a Denver office and they expect to build their front-range portfolio of 2-3-200 units. They already own a few small apartments in downtown Colorado Springs and bought a 115-unit Fillmore Ridge apartment in 2010 for $ 2.8 million, or only 24,000 a door.
Even after many or few developments over the years, several new projects are underway, or awaiting final approval. At the end of September they bought Cheney Crossings apartments for 19.5 million, coming in at more than 85,000 per unit for 220 units.
Grading is already underway at the corner of Woodman Road and Union Boulevard, where Denver-based Southwest Investment Adviser. Utah-based Tales Holdings have worked to build a 230-unit luxury apartment complex.
To the north of the monument
Local team Vision Development has launched a 177-unit complex, and longtime local developer Norwood Development Group has demolished 240-unit Mesa Ridge apartments on the southern edge of the city. The project is near Fort Carson. It should add troops returning from a tour of Afghanistan as well as the aviation brigade in 2013 with their helicopters and support personnel as expected.
On the east side of town near Peterson Air Force Base. There is a large mixed-use project at the planning stage that will include 450 apartment units in addition to two military office buildings. Restaurants and retail space. It will be near the intersection of two major arteries, Powers Boulevard and Airport Road.
All of these new construction activities pushed the number of multiple multimale permits approved this year to 407, the highest since 2002, when 1,664 permits were issued. More permits issue in this single year than in previous single years. In fact, in 2009, more than one permit issue to the outside world.
With 44,000 apartment units now available
This year will add less than 1% to the total. With its low vacuum rate and rising rent, Springs looks so attractive to investors and developers so it’s no surprise.
It should add troops returning from a tour of Afghanistan as well as the aviation brigade in 2013 with their helicopters and support personnel as expected.
Les Goss Colorado Spence, a real estate investor and syndicate in Colorado. You can learn more about the Colorado Springs apartment market by visiting her blog [https://www.proangleconstruct.com/]
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