Colorado Real Estate Journal -
A privately held California based real estate company acquired the Alexan at Briargate apartment community in the highest-priced multifamily sale ever to close in Colorado Springs. Passco Companies LLC, which specializes in the investment, acquisition, development and management of commercial properties throughout the United States, paid $54 million for the community, renamed Vue21. The $167,701 price per unit also represents the highest price per unit ever achieved in Colorado Springs, noted Kevin McKenna of ARA Colorado, who handled the transaction with ARA Colorado’s Jeff Hawks and Doug Andrews. “Properties like this don’t come up in a market this size,” said McKenna. “It’s a different price point, a different pool of buyers. There was a lot of interest in the asset. “It's not often an asset like this comes on the market. Buyers realized that this was a unique opportunity to control a market-leading property in a great location. They were attracted to the discount this represents when compared to a similar asset in a large market like Denver. They also see a market that has a lot of room to run on rents,” McKenna added. The 322-unit Class A community, located at 4610 Nautilus Peak View, was constructed in 2009. “Multifamily has been a hot product over the last few years and has provided lucrative opportunities for investors,” said Gary Goodman, senior vice president, acquisitions, Passco Companies LLC. “At this time, it is much more challenging to identify strong investment opportunities in this sector. However, Vue21 will provide our company with a solid asset to add to our already strong portfolio of multifamily investments. “We were fortunate to be able to close this property in 45 days,” he added. According to Goodman, Vue21 is the right product in an especially prime location in an especially strong economic and populous market. “Vue21 is particularly welllocated within the Powers Boulevard corridor, the fast-growing part of Colorado Springs, which itself is one of the fastest-growing cities in the U.S.,” said Goodman. “Its location within the renowned Academy District 20 allows residents to take advantage of the best schools in the city as well. “Continuing renter demand will be generated by its location within the area’s largest concentration of office space, totaling over 10 million square feet. This office space is home to national tenants such as USAA, T-Mobile, Focus on the Family, Oracle and Lockheed Martin, providing thousands of jobs to area residents,” he added. Additional renter demand stems from the area’s large concentration of military and defense-related employers, health care firms, and 11 nearby colleges and universities. “It’s the premiere community in Colorado Springs. The clubhouse and unit layouts are second to none,” said McKenna. “The property is already well appointed with excellent common area amenities and high-end unit features, but we do plan to implement some minor upgrades. Specifically, we plan to update the flooring in the ground-floor units, installing vinyl wood-plank flooring. We have found that residents in high-income markets are willing to pay a premium for units with this upgraded wood flooring,” added Goodman. Vue21, which comprises one-, two- and three-bedroom floor plans from 694 to 1,340 sf, features custom cabinetry, walk-in closets, granite-style counter tops, and washers and dryers. The community also includes a resort-style pool, state-of-the-art fitness center, Wi-Fi café, fitness center and outdoor social area with fire pit. A joint venture between an institutional investor and a national multifamily developer sold Vue21, which is situated on 11 acres within the Cordera master-planned community and adjacent to a Super Target and across from Memorial Hospital. At the time of sale, Vue21 was 95 percent occupied. Vue21 represents Passco’s first acquisition in Colorado Springs. The firm is looking to make additional acquisitions in the area and is actively seeking Class A multifamily properties in the Colorado Springs and Denver area. The acquisition of Vue21 brings Passco’s multifamily portfolio to 33 properties and more than 10,000 units located in 14 states throughout the U.S.