ARA Newmark Closes Highest Multifamily Trade in Colorado Springs History
Colorado Springs, CO — ARA, A Newmark Company (ARA Newmark) sold Grand River Canyon, the highest multifamily trade in Colorado Springs history and the third largest trade of any asset class in the metropolitan area since 2001. Grand River Canyon sold for an undisclosed price.
Executive Managing Director Kevin McKenna, Vice Chairmen Doug Andrews and Jeff Hawks and Director Saul Levy represented Griffis Residential in the sale to Courtland Partners, an Atlanta-based company and first-time multihousing buyer in Colorado Springs. Grand River Canyon was 98 percent occupied at the time of sale.
“With job growth, rent growth, minimal construction and low vacancy, Colorado Springs checks all of the boxes of a model multifamily investment market,” noted McKenna. “Annual rent growth is 9.1 percent, the fourth highest in the U.S., while vacancy is at a 15-year low. New buyers are developing confidence in such attractive fundamentals, which has helped us achieve record-breaking prices.”
At 440 units, Grand River Canyon has the second-highest unit count in Colorado Springs. “The property was a perfect fit for a large pool of buyers targeting 1990s value-add assets in Class A locations. Its size offered immediate scale and attracted institutional, JV partners which are relatively rare in this market,” said McKenna.
The units at Grand River Canyon are not renovated which makes the property an ideal candidate for a value-add program that will allow it to compete with newer product, most of which was built within the last five to 10 years. “The average unit size at this property is smaller than the competition, allowing an attractive price point in a submarket with the highest rents in the city and an amenity package superior to newly-built product,” McKenna said.
Constructed in 1999, the property offers residents a three-tier, resort-style pool and a clubhouse fully equipped with an indoor tanning bed, business center, fitness center and a dog wash station. Grand River Canyon is located at 7755 Kaleb Grove Road in one of the best school districts in Colorado. It offers fantastic walkability to the area’s largest mall, Chapel Hills, and premier retailers along Academy Boulevard that include Whole Foods, REI, Home Depot and 24 Hour Fitness. The area’s largest concentration of office space is just north and includes USAA, Progressive, and T. Rowe Price.
Images courtesy of ARA, A Newmark Company