Multifamily Asset in Colorado Springs Sets New Per-Unit Record
COLORADO SPRINGS — Overlook at Interquest, a 2018-constructed, 264-unit asset in Colorado Springs, has sold for $66.5 million. As the first pre-stabilized multifamily asset sold in recent Colorado Springs history – with 80 percent occupancy at the time of sale – the transaction represents the market’s demand for new product and demonstrates a boost in buyer confidence. It also set the new price per-unit record in Colorado Springs of $251,894 per unit.
“A recent trend in the Denver multifamily market is the increase in pre-stabilized asset sales. Pre-stabilized sales bring value to the seller/developer by allowing them to more quickly transition capital into new projects,” said McKenna. “The sale of Overlook at Interquest is the first pre-stabilized asset sale in Colorado Springs and it characterizes the continued closing of the economic gap between Colorado Springs and metro Denver.”
Overlook at Interquest is at the epicenter of growth as Colorado Springs continues to expand to the north, with a population which has doubled since 2010 and is expected to increase by 5.77 percent every year for the next five years. It is also among the top five in the nation for job growth and has 10 percent wage growth.
The North submarket, where Overlook at Interquest is located, has more than 8.7 million square feet of office space, which represents a majority of the Colorado Springs office market. Progressive Insurance, the largest private employer in Colorado Springs, is located two miles north of the property. At the beginning of the year, Progressive Insurance announced the addition of 1,100 customer service, sales and IT jobs to its Colorado Springs location. Other major employers include FedEx, Oracle, Lockheed Martin and USAA, the second largest employer in the state. Overlook at Interquest is in one of the best school districts in Colorado Springs and the state, Academy School District 20.
Overlook at Interquest is one of only eight Class A+ properties built in Colorado Springs during the last five years. Of these eight properties, only two have traded – Overlook at Interquest and Cortland Powers North (FKA Elevation) — both of which were handled by the NKF Multifamily Colorado Springs team. Overlook at Interquest is just one of the team’s latest sales to set the highest price per-unit record in Colorado Springs history; NKF Multifamily has set this record seven times in the past five years in Colorado Springs.
Photo courtesy of NKF