Colorado Real Estate Journal -
LocalConstruct, a California based real estate development, investment and management company, is picking up where Seagate Properties left off. LocalConstruct paid $6.05 million, or $53,070 per unit, for Fillmore Ridge, a 114-unit apartment community located at 3210 N. Chestnut St. in Colorado Springs. “This is LocalConstruct’s first multifamily purchase in Colorado Springs. They see the bright future this market has in store and they are looking to grow their portfolio here in the coming years,” said ARA’s Kevin McKenna, who with ARA’s Ken Greene represented seller Seagate Properties. “The seller bought this property out of foreclosure in 2010 and has substantially upgraded it over the past two years. They did a fantastic job and essentially moved it up an entire asset class from a C to a B. They took care of everything, including new windows, a new office and fitness center, paint, parking lots, pool upgrades, landscaping and signage,” noted McKenna. “In addition, they renovated roughly half the units and were able to achieve sizable rent bumps. It shows renters are willing to pay for higher-quality finishes and I would expect to see more of these rehabs in the market going forward.” Local Construct plans to finish the unit renovations started by Seagate as well as looks to acquire additional properties in the market, said McKenna. Constructed in 1965, Fillmore Ridge comprises studio, one-, two- and three-bedroom apartments. At the time of closing, Fillmore Ridge was 91 percent occupied.