Colorado Real Estate Journal - March 18, 2015
A Colorado Springs-based investment group purchased an apartment community in the Broadmoor area with significant upside and a significant number of suitors. The unidentified group paid $12.16 million, according to public records, for Skyway Village, a 148-unit community at 864 Oxford Lane in Colorado Springs. “We had a double-digit number of offers, which shows both the strength of the property and investors’ confidence in the Colorado Springs market,” said Kevin McKenna of ARA Colorado, who represented the out-of-state seller with ARA Colorado’s Saul Levy. “It’s rare when a property in the Broadmoor area comes on the market. The demographics, home prices and school district are second to none in Colorado Springs,” continued McKenna. “The southwestern submarket also has some of the highest rents, lowest vacancies and largest barriers to new construction in the metro area. There are zero properties under construction there.” While the location helped drive a lot of the interest in Skyway Village, the upside the 1970 community offers was key. Market rents in the city’s southwest submarket during the fourth quarter of 2014 averaged $1.05 per square foot – above the 93 cents per sf Skyway Village was asking at its time of sale, according to ARA Colorado. The new owner, who owns additional assets in the Colorado Springs and Denver markets, can capitalize on the value-add potential not only by raising rents but also through capital improvements, noted McKenna. The seller had renovated the office/leasing center and updated hallways with vinyl fauxwood flooring and new paint, but additional opportunities are available. “Skyway really has some unique features for a property built in 1970. All the twobedroom floor plans have two baths, central AC and a large balcony or patio. There’s ample value-add potential to renovate the interiors and amenities such as a fitness center, dog park and playground.” Skyway Village, comprising one- and two-bedroom units, was 98 percent occupied at the time of sale.