Two Newly-Renovated Multifamily Properties in Colorado Springs Sell for $74.1M
Two newly-renovated multifamily communities, Park at Penrose and Park at Palmer, in Colorado Springs, have sold for a combined $74.1 million. Park at Penrose with 374 units, and Park at Palmer with 112 units, are located at 3802 and 3903 Half Turn Road, situated along N. Academy Boulevard near Austin Bluffs Parkway. These adjacent properties, formerly named Summer Grove and Tanglewood, are located in the Palmer submarket, the fastest rent growth submarket of Colorado Springs.
The seller, an affiliate of The Axton Group and The Bascom Group, LLC purchased the properties for $41.15 million in June 2019 and completed a successful multi-year renovation program to upgrade the apartment units and community amenities, resulting in significant renovation rent premiums.
The properties’ booming neighborhood is conveniently located near shopping, dining, outdoor recreation, and strong employment opportunities, driving organic rent growth during the partnership’s investment period. Major local employers include Amazon and FedEx, located near the Colorado Springs Airport, which is only a 15-minute drive from the properties. During the investment period, Colorado Springs continued to benefit from a steady influx of employers in the aerospace, military, technology, life science, healthcare and banking sectors who relocated to and expanded in this area. The nearby I-25 provides property residents easy access to many major employment hubs and a direct one-hour commute to Denver.
Park at Penrose and Park at Palmer offer one, two, and three-bedroom apartment options. Renovated units include new kitchen appliances and cabinets, updated flooring and lighting fixtures, and bathroom vanities. The properties feature a state-of-the-art fitness center, a dog park, a pool, a clubhouse with game rooms and billiards, business centers, and grilling and picnic areas. The partnership enjoyed several years of strong operating cash flow and successfully re-financed the properties in February 2022. Axton and Bascom are continuing to focus on investments in the multifamily sector across the United States, with a focus on value-add opportunities that arise as pricing resets amid significant global macroeconomic pressures. The partnership is grateful for the efforts of the entire team involved in stewarding these assets over the past four years, leading to a successful outcome for the Partnership.