Oak Coast Properties Buys Apartment Community in Colorado Springs for $37M, Planning Renovation
Cottonwood Terrace, a 200-unit apartment community located in Colorado Springs, has been sold to Oak Coast Properties for $37.25 million. The firm is planning a $1.5 million renovation to the community as part of a value-add investment strategy aimed at the vast number of millennials moving into the region and looking for quality housing where housing demand continues to outpace supply.
With the purchase of Cottonwood Terrace, Oak Coast Properties’ portfolio now exceeds 5,129 units under management, with over $1 billion in valuation. “Our portfolio continues to perform and beat expectations, even with COVID-19 as a backdrop,” Phil Nahas, managing partner of Oak Coast Properties. “Thus we are comfortable continuing to acquire quality multifamily properties like Cottonwood Terrace.”
Cottonwood Terrace is a garden-style community comprised of 20-buildings of two and three stories set on an 8.27-acre site. Unit floorplans span one- and two-bedroom options and feature large open kitchens, balconies, patios, large closets, as well as wood burning fireplaces and views of Pike’s Peak in some units. Originally built in 1983, 52 percent of the rental units have undergone upgrades. The remaining units, still in their original condition, represent an upgrade opportunity for Oak Coast Properties, which is planning enhancements to appliances, countertops, cabinets, lighting, flooring and in-unit washers and dryers, among others.
“In recent years, Colorado Springs has consistently ranked among the top cities drawing large droves of millennials,” adds Nahas. “As a key cohort in the apartment living sector, these individuals are seeking quality housing options. While a highly desirable community already, Cottonwood Terrace will be even more attractive to these renters when our renovation efforts are complete.”
JLL also arranged a Freddie Mac loan in the amount of $12 million on behalf of Oak Coast Properties for the acquisition. Financing was led by senior managing director Charles Halladay, senior director Brock Yaffe and director Rick Salinas.
Photo courtesy of Oak Coast Properties