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July 1-July 14, 2015 —
COLORADO REAL ESTATE JOURNAL
— Page 13
Colorado Springs/So. Front Range
by Jennifer Hayes
A social impact real estate
company acquired its first Col-
orado apartment community
with its purchase of the Advenir
at Cheyenne Crossing.
OpenPath Investments LLC
of California paid $25 million,
or $113,636 per unit, for the
220-unit, Class B apartment
community, renamed Chey-
enne Crossing Apartments, at
640 Wycliffe Drive in Colorado
Springs.
OPI, which organized and
sponsored the deal, identifies
existing rental apartment prop-
erties with value-add/opera-
tional upside in the Western
U.S. with 100-plus units that
provide workforce hosing.
At Cheyenne Crossing, a Class
B-plus asset in an “A” location,
OPI will provide minor exte-
rior capital expenditures, close
the gap between in-place rents,
conduct light interior renova-
tions on 41 units and add wash-
ers and dryers inside units to
further push rents.
“All of OPI properties culti-
vate healthy and thriving com-
munities through social stew-
ardship, open feedback loops
and respect for all parties and
viewpoints. We measure returns
not only financially but also
socially and environmentally.
OPI strives to create a sense of
‘place’ at each of our properties
whereby residents and employ-
ees are supported and commu-
nities ultimately thrive,” OPI
founder and Managing Partner
Peter Slaugh said in a release.
Additionally, each OPI prop-
erty incorporates the urban
village program based on the
premise that residents operate
stronger as a collective commu-
nity rather than as individuals.
The firm noted that core to its
mission, the program attempts
to unlock the unlimited poten-
tial that community and healthy
living spaces can achieve.
The community, constructed
in 1986, received substantial
interest from a wide range of
qualified investment groups,
noted ARA Newmark’s Kevin
McKenna.
“It's not often a property
comes on the market in the
Broadmoor area. Top-ranked
schools, strong incomes and
high-end homes make this one
of the best locations in all of
Colorado Springs. It's a sub-
market that has high barriers
to entry, low vacancy and some
of the highest rents in town,”
said McKenna, who with ARA
Newmark’s Doug Andrews,
Jeff Hawks and Saul Levy rep-
resented the seller, Advenir, in
the transaction.
“We continue to see buyers
from all over the country look-
ing at Colorado Springs as a
market that has a bright future,”
McKenna added. The south-
west submarket, where Chey-
enne Crossing is located, expe-
rienced 9.7 percent rent growth
from first-quarter 2014 to first-
quarter 2015. With strong rent
growth like this, more buy-
ers are focusing on Colorado
markets for future multifamily
acquisitions, he commented.
As well, Cheyenne Crossing
benefited from recent capital
improvements totaling more
than $1.5 million as Advenir
invested more than $600,000 in
a unit upgrade program that
featured new, black appliances,
plank faux-wood flooring, two-
inch blinds, and updated cabi-
nets and countertops. Advenir
also added new roofs as well
as a completely renovated leas-
ing center/clubhouse, pool and
hot tub area at the community,
which features one- and two-
bedroom units.
Even with the capital
improvements, McKenna said
OPI will have ample opportu-
nity to drive more revenue with
its planned improvements and
the addition of washers and
dryers to units.
OPI has been investing in
multifamily acquisitions for
more than a decade, trading
in and out of more than 2,100
apartment units with a total
acquisition value exceeding
$200 million and a historical
internal rate of return of 17 to
20-plus percent. The company
strategy is to continue gener-
ating above-market investment
returns alongside measure-
able social and environmental
impact.
Other News
n
Island Cattle Compa-
ny LLC
recently purchased a
10,261-square-foot automotive
building in Colorado Springs
for $785,000.
The freestanding building
at 5706 S. Carefree Circle, off
Carefree and North Powers
Boulevard, was sold by
JPMor-
gan Chase Bank NA.
The building, constructed in
2007, has five automotive bays.
Matt Call
of
NavPoint Real
Estate Group
represented the
buyer.
Brian Wagner
of
New-
mark Grubb Knight Frank
represented the seller.
n
Playdate Inc.
recently paid
$1.2 million for 20,075 sf of
office space at 6040 and 6050
Erin Park Drive in Colorado
Springs.
The buyer was represented
by
Russell Stroud
of
Quantum
Commercial.
The seller,
Jerald
M. Barnett Revocable Trust,
was represented by
Aaron
Horn
of
Colorado Springs
Commercial, a Cushman &
Wakefield Alliance.
s
California-based buyer acquires first Colorado apt. communityOPI paid $25 million, or $113,636 per unit, for the 220-unit Advenir at
Cheyenne Crossing community.
OPI plans light interior renovations to a portion of the units and to close
the gap between in-place rents.