CREJ

February 18-March 3, 2015 —

COLORADO REAL ESTATE JOURNAL

— Page 15

Colorado Springs/So. Front Range

by Jennifer Hayes

Colorado Springs’ multifam-

ily market is drawing attention

nationwide, as evidenced by

the number of offers seen in

the $19.35 million sale of Sienna

Place.

Alta Community Investments

of Westlake Village, California,

purchased the 312-unit Sienna

Place Apartment Homes from

T.E. Miller Development Co., a

deal representative of the grow-

ing interest in tertiary markets

like Colorado Springs, according

to the listing brokers of the com-

munity located at 850 E. Chey-

enne Road.

W h i l e

C o l o r a d o

real estate in

general has

experienced

s i gn i f i c a n t

interest from

national and

international

i n v e s t o r s ,

C o l o r a d o

Springs has been attracting more

and more attention from buyers

originally focused on the Denver

metro statistical area, according

to Colliers International.

“With very

compressed

cap rates in

the Denver

MSA

and

new construc-

tion

starts

signifi-

cantly, Colo-

rado Springs

is a market

that’s draw-

ing attention from investment

groups searching for multifam-

ily property in Colorado with

Sienna Place community draws multitude of offers

The Sienna Place apartment community in Colorado Springs traded for

$19.35 million.

Craig Stack

Bill Morkes

by Jennifer Hayes

A privately held real estate

investment and management

company made its debut in the

Colorado Springs market with

its acquisition of the NorthCreek

office complex.

California-based Younan Prop-

erties paid $15.85 million, accord-

ing to public records, for the

three-building campus totaling

320,712 square feet along Inter-

state 25.

NorthCreek I, II and III are situ-

ated at 5725, 5755 and 5775 Mark

Dabling Blvd. with visibility

from the interstate in the north-

ern Colorado Springs submarket.

“This was an exceptional

opportunity to acquire a one-

of-a-kind office portfolio in the

North I-25 corridor and Colorado

Springs with a very strong ten-

ant roster. We see great potential

in this portfolio and significant

upside in stabilizing the occu-

pancy in this constantly improv-

ing market,” said Zaya S. You-

nan, chairman and CEO of You-

nan Properties.

“Younan Properties was suc-

cessful in acquiring NorthCreek

at a very attractive price and

significantly below replacement

cost,” he added. “The northwest

office market has no new inven-

tory coming on line and there is

no new construction in the pipe-

line, which is important for land-

lords, both in growing occupancy

and rental rates.”

Built in 1984, the two- and

three-story buildings were

around 65 percent leased at the

time of sale, which offers a lot of

upside in the deal, noted Larry

Thiel of Transwestern, who han-

dled the transaction for the seller

with Transwestern’s Brad Cohen.

Tenants include AAA Insur-

ance, FirstSource Group USA,

PMC Sierra and the General Ser-

NorthCreek office complex trades for $15.85 million

Several large national

investment groups have

made multiple purchases in

Colorado Springs during the

market downturn, a further

indication of investor confi-

dence in the market, accord-

ing to a recent quarterly mar-

ket report by Quantum Com-

mercial Group Inc.

The firm noted that inves-

tors continue to target oppor-

tunities in secondary and

tertiary markets to escape

bidding wars in the primary

markets and take advantage

of better yields in the smaller

markets. The majority of com-

mercial sales transactions in

Colorado Springs came from

well-capitalized national and

regional investment groups.

In particular, Denver’s record-

breaking multifamily sales

had a trickle-down effect on

Investor confidence strong in Springs, according to Quantum Please see Sienna, Page 39 Please see NorthCreek, Page 39 Please see Springs, Page 33