California Investment Firm Buys and Renames Apartment Community in Colorado Springs

Marking their second acquisition in Colorado Springs, NALS Apartment Homes, a fully integrated real estate investment firm headquartered in Santa Barbara, Calif., has purchased Watermark on Union, a premier pre-stabilized 244-unit, Class A+ apartment community located in the high-end, master-planned Cordera community. The property sold for an undisclosed price and has been renamed Aliso at Briargate.

Executive Managing Director Kevin McKenna and Director Saul Levy of Newmark Knight Frank (NKF) Multifamily represented the seller, nationally recognized multifamily development and residential management company, Watermark Residential, in the sale to NALS Apartment Homes. NALS owns and manages apartment homes in 15 different markets.

“Watermark on Union was 65 percent occupied at the time of sale, demonstrating the buyer’s belief in their ability to fully stabilize the property in the coming months,” stated McKenna. “As one of the leading communities in the metro area, Watermark on Union is well positioned to capitalize on the growth this market anticipates in the foreseeable future.”

West of the property, Memorial Hospital, part of UC Health Systems, recently completed a brand new $110-million, 170,000-square-foot facility in partnership with Children’s Hospital. Other major employment hubs, in addition to the multitude of healthcare facilities, are conveniently located next to the property, as well as a high concentration of office space including the Briargate Business Park. Several major retailers including Target, Lifetime Fitness, King Soopers and Lowe’s are all within walking distance of the property. Annual home prices in the area average $580,000 and average household income within a one-mile radius of the development is $148,000.

Colorado Springs is increasingly attracting national attention as one of the strongest economies with some of the most robust multifamily fundamentals in the entire nation.

“Average rents continue to rise and reach new highs in Colorado Springs,” shared Levy. “These gains have resulted in an annual rent growth of 8.6 percent for 2019. The North submarket maintains strong demographics and consistently produces the highest rents and strongest absorption in the Metro Area.”

Photo courtesy of NKF


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