Colorado Real Estate Journal - January 3, 2018
Monument’s newest, marketrate apartment property recently sold for $57.82 million. The buyer, a private investment group, paid more than $216,000 per unit for the Vistas at Jackson Creek, a 267-unit community approximately one-half mile east of Interstate 25. “Colorado Springs is one of the top-performing apartment markets in the country currently and northern Colorado Springs, which includes Monument, has some of the area’s highest rents,” said Nick Steele, senior associate, Marcus & Millichap, noting the Vistas at Jackson Creek to his knowledge is the only newly built, market-rate property in the entire town, which boosted its appeal. Additionally, “Vistas at Jackson Creek is positioned to benefit from the continued strength of the Colorado Springs market as well as rapidly growing suburban Denver communities to the north. The asset should prove to be a well considered investment for our clients for years to come.” Steele along with Marcus & Millichap’s Jacob Steele, first vice president of investments, represented the buyer, which purchased the property as part of a 1031 exchange. The two also represented the group on the sale of its relinquished property as well. Built on more than 14 acres at 16112 Old Forest Point, the two-phased community was built in 2014 and 2016, and is located south of downtown Monument off Jackson Creek Parkway. Vistas at Jackson Creek features a mix of one-, two- and three-bedroom units in 12 three-story walk-up buildings. Amenities include a clubhouse, playground, dog wash station, swimming pool/hot tub, fitness center, business center, guest suite, detached garages and a coffee bar. In-unit features include custom cabinetry, granite countertops, washers/dryers, walk-in closets and wood-plank flooring. In October, Vistas at Jackson Creek earned the U.S. Environmental Protection Agency’s Energy Star certification. At the time of sale, the community was between 97 and 98 percent occupied. Vistas at Jackson Creek was sold by CSI Construction. PGIM Real Estate Finance, the commercial mortgage finance business of PGIM, the global investment management business of Prudential Financial Inc., provided a $48.13 million loan for the acquisition. Marcus & Millichap Capital Corp. arranged the loan. The nonrecourse debt placement was structured with a 35-year fully amortizing loan term and a fixed interest rate of 3.49 percent through the U.S. Department of Housing and Urban Development 223(f) permanent loan program. “This is the largest single permanent HUD-insured loan closed in Colorado in the past 12 months,” said Phillip Gause, vice president capital markets in MMCC’s Denver office, who arranged the loan. “The Colorado multifamily market’s strong and steady upward trajectory has boosted the buying power of private investors to the point where they can compete with institutional capital for institutional-quality assets,” he added. “In this transaction, we worked closely with one of our exclusive correspondent capital partners, PGIM Real Estate Finance, to deliver exceptional terms and put our client in position to close weeks ahead of schedule. The property also qualified for HUD’s Green MIP Reduction program, which improves the borrower’s cash flow substantially.” “This transaction highlights our ability to utilize HUD 223(f) for acquisition financing. There were many moving parts and tight timelines, but we exceeded expectations through our focused and experienced underwriting and processing teams,” added Patrick Kempton, principal and transaction lead for PGIM Real Estate Finance. “As a newly constructed apartment complex in a desirable location between Denver and Colorado Springs, Vistas at Jackson Creek makes a great addition to our portfolio.” Other News ¦ A private investor out of Denver paid $2.9 million for the Town and Country shopping center in Colorado Springs. The 23,960-square-foot center at 430-498 N. Murray Blvd., just east of North Academy Boulevard at the intersection of Platte Avenue and Murray, which sees average traffic volume in excess of 45,650 vehicles per day, was sold by a private investor from Salida. “Town and Country provided a strategic investment opportunity as it offered both stable cash flow from existing national brand-name retail tenants as well as the opportunity to add value by leasing up the remaining vacant space,” said Parker Brown, an associate with CBRE Capital Markets, National Retail Partners, in Denver. “While a local investor purchased this property, it’s indicative of a national trend. We are seeing capital sources from across the country turning to secondary markets like Colorado Springs to discover untapped retail investment opportunities with promising returns.” Brown, along with Matthew Henrichs and Brad Lyons of CBRE Capital Markets, National Retail Partners, represented the seller. Whitney Johnson of CBRE Retail Services in Colorado Springs concurrently listed the property for lease and served as a leasing expert for the sales team. Town and Country was 85 percent leased at the time of sale. Built in 1986, Town and Country includes two single-story, multitenant buildings plus a 2,560-sf pad site occupied by 7-Eleven on 2.41 acres. The tenant roster includes a mix of restaurants, local businesses and national brands like JacksonHewitt, MetroPCS and EZ Pawn. ¦ A former 12,799-sf bank property on a 1.06-acre site in Colorado Springs sold to CVS 11001 CO LLC for $2.4 million. The property at 3485 N. Academy Blvd., at the corner of Carefree Circle and Academy, was purchased for a planned CVS Pharmacy at the site. Additionally, a 0.5-acre parcel of land was acquired from the unrelated owner of the retail center behind the property for the planned development. CVS plans to scrape the building, originally the main office in Colorado Springs for First Federal Savings & Loan. It was built in 1975. J. Thomas Stoen sold the property. It was listed by Bob Leino and Brian Baker of Fuller Real Estate. NAI Highland’s Craig Anderson also worked on the transaction.