Colorado Real Estate Journal -
A lakeside apartment community in Colorado Springs achieved the highest price per unit ever paid for a 1970s garden-style asset in the city. Colorado Springs-based Griffis/Blessing paid $16.5 million, or $105,769 per unit, for the 156-unit Bonterra Lakeside apartment community at 890 Quail Lake Circle. “We had strong interest from a number of buyers. This demand along with the unique nature of the property helped achieve the highest price per unit ever paid for a property built within this time frame in Colorado Springs,” explained Kevin McKenna of ARA, who handled the sale with ARA’s Ken Greene, Doug Andrews and Jeff Hawks. “This is truly one of the most unique properties in Colorado Springs,” he continued. “The average unit size is over 1,100 square feet, it is concrete construction, all of the units have a detached garage and the setting right on Quail Lake is irreplaceable.“It’s located in one of the tightest submarkets in the metro area with some of the best demographics and is able to demand very strong rents and occupancy.” “It’s a very unique property and location,” agreed B.J. Hybl, chief operating officer and president, property services, at Griffis/Blessing, noting the community is situated in a submarket with little new construction. “Our plan is to add value to this property by creating energy efficiencies and enhancing the property amenity package,” added Gary Winegar, chief investment officer at Griffis/Blessing. “We understand this market very well and believe that enhancements directed at maximizing residents’ quality of life and enjoyment of living at Bonterra Lakeside will translate to additional profits for our investors at the bottom line.” Griffis/Blessing plans to build upon improvements made over the last five years by seller Hamilton Zanze & Co. that included a remodeled clubhouse and new fitness center. Work will include interior upgrades, however, the majority of the improvements will be focused on improving the outdoor living amenities of Bonterra Lakeside, said Hybl. Griffis/Blessing’s plans include upgrading the pool, increasing outdoor spaces for residents, converting the basketball court to an all sport court and building a number of decks that cantilever over the bluffs. Constructed in 1973, Bonterra Lakeside is located in the southwest portion of the city and just south of the Broadmoor Town Center, near Fort Carson and less than five minutes from Target, OfficeMax, Petco, Cinemark Theaters and the Colorado Springs World Arena. It also is adjacent to Quail Lake Park, which offers amenities such as boating, fishing, swimming on the lake, as well as a basketball court, volleyball courts, picnic areas and a playground. Bonterra Lakeside features a mix of one-bedroom, one-bath, two bedroom, one-bath, two-bedroom, two-bath and three-bedroom, two bath apartments. At the time of sale, Bonterra Lakeside was 94 percent occupied. NorthMarq Capital arranged $13.2 million in financing for the acquisition. Griffis/Blessing also is working on the acquisition of a Denver apartment community with a similar profile to Bonterra Lakeside.