Transactions Report Week of 10.02.17
CBRE COMPLETES $41.1 MILLION SALE OF LAMPLIGHT SQUARE APARTMENTS IN COLORADO SPRINGS
CBRE announced today that they recently completed the $41.1 million sale of the 280-unit multifamily community Lamplight Square, located at 6236 Twin Oaks Drive in Colorado Springs, Colorado. Dan Woodward, David Potarf, Matthew Barnett and Jake Young with CBRE Capital Markets, Denver Multifamily Investment Properties, represented the seller, Hamilton Zanze of San Francisco, California. The buyer, Griffis/Blessing of Colorado Springs, purchased the property in a sale that closed Sept. 6, 2017.
“Lamplight Square attracted investors for several reasons, including its in-fill location, historically high occupancy levels, great cash flow and close proximity to desirable retail, recreation and major Colorado Springs employers,” said Jake Young, vice president with CBRE. “The property has been well-maintained but presents strong value-add potential through some simple unit renovations and exterior improvements.”
Built in 1984, Lamplight Square consists of 280 one- and two-bedroom apartment homes across 17 rental buildings. In total the property spans approximately 10 acres and includes an above-market parking ratio with one carport for each apartment. Community amenities include a clubhouse, 24-hour fitness center, coffee bar, swimming pool, spa and BBQ and picnic areas. The property is also located adjacent to Erindale Park with access to biking and walking trails. The community was averaging 95.5 percent occupancy at the time of sale.
“With this asset, we were able to prove our long-term fixed-rate strategy that allowed us to weather one of the worst recessions in history and produce an IRR in the mid-teens over a 10-year period,” said Kurt Houtkooper, CIO, Hamilton Zanze. “Colorado has been a great market for us as operators and investors, and we continue to seek opportunities to grow in the region. We look forward to continuing to be active in Colorado as buyers, asset managers, and sellers.”
“Value-add opportunities in Colorado Springs are seeing significant interest from multiple capital sources,” added Mr. Young. “The local multifamily market is benefitting from the region’s strong, diversifying economy, population growth, limited new apartment supply and double-digit rent growth.”
APARTMENT COMPLEX IN PRIME CENTRAL DENVER NEIGHBORHOOD PURCHASED FOR $12.85 MILLION
Marcus & Millichap, a leading commercial real estate investment services firm with offices throughout the United States and Canada, is pleased to announce the sale of Dwell Apartments, a 53-unit apartment complex in the heart of Denver’s Capitol Hill neighborhood. The $12.85 million sales price equates to $242,453 per unit.
“Dwell is an incredible asset. It is one of only a handful of fully amenitized properties in the Capital Hill sub-market.” says Nick Steele, senior associate in Marcus & Millichap’s Denver office. “Located a block and a half from Trader Joe’s and with a Walk Score of 91, the location is irreplaceable.”
Jacob Steele and Nick Steele, represented the buyer, a Colorado-based private capital client. The seller was also a Colorado-based private capital client.
Dwell Apartments is located at 600 – 624 N Pennsylvania St. in Denver. The unit mix includes studios, one- and two-bedroom apartments that range from 505 square feet to 829 square feet.
PINNACLE ANNOUNCES THE SALE OF 24-UNIT APARTMENT BUILDING IN DENVER AND COURTYARD ESTATES IN COLORADO SPRINGS
Pinnacle Real Estate Advisors, LLC is pleased to announce the sale of 1877 South Federal Boulevard. This 24-unit multifamily property was built in 1962. The property is conveniently located directly off Federal Boulevard, just north of West Evans Avenue in Denver. The property is made up of all one bedroom, one bathroom units. The transaction closed on September 27, 2017 for $2,900,000 or $120,833 per unit and $209/SF.
“The sellers repositioned the building and significantly increased rental rates during the past couple years,” Hornstein said. “This was a great opportunity for the buyer to step into a stable asset and enjoy cash flow on day one.”
Joe Hornstein and Eric Veith, with the Hornstein│Fetter Apartment Group, represented both the buyer and seller in this transaction.
Pinnacle is also pleased to announce the sale of Courtyard Estates at 4330-4390 East Pikes Peak Avenue located in Colorado Springs. The 176 unit multifamily building sold for $11,365,000 or $64,574 per unit. Tom Ethington and Rob Edwards, principals, and Mike Krebsbach, associate advisor, represented the local seller in the transaction.
“The seller had owned the property for over 20 years and was excited to 1031 exchange into more passive investments. The buyer is an experienced value-add operator and has a great vision for the property,” said Ethington. “This transaction was a win-win for both the buyer and seller.”
“Our seller had received unsolicited offers well below the property’s actual value. We advised our seller to list the property for sale with us and allow us to get the property out to the open market. By doing this, we were able to create competition amongst the buyers and attain an offer that closed $1,365,000 over the unsolicited offers they received,” said Krebsbach.