Colorado Real Estate Journal - June 17, 2015
Colorado Springs’ largest apartment community sold in the fourth-highest-priced multifamily transaction in the city’s history. Salt Lake City-based RealSource paid $47 million, or $89,015 per unit, for Antero, a 528-unit apartment community at 1432 Sandalwood Drive. “This was a unique opportunity to get over 500 units in a single transaction. That appealed to both new buyers to Colorado and existing owners looking to grow their portfolio quickly,” Kevin McKenna of ARA Newmark said of the sale. McKenna, along with ARA Newmark’s Doug Andrews, Jeff Hawks and Saul Levy, represented the seller, Real Capital Solutions, in the transaction. ARA Newmark saw a number of new buyers to the Colorado Springs market pursuing the asset, including RealSource; the purchase of Antero represents its first multifamily acquisition in Colorado. Calls to RealSource regarding the acquisition were not returned. Real Capital Solutions acquired Antero in 2012 and invested more than $3 million in capital improvements to the former Tanager Meadows Apartment Homes. “The seller did a fantastic job renovating the property by adding amenities like a new clubhouse, dog park, playground and outdoor grill-picnic area,” commented McKenna, as the seller’s unit renovation program saw apartments consistently producing $100 rent premiums over nonrenovated units. “We were able to add a significant amount of value to the property during our ownership, to the benefit of the residents, our investors and the new owners,” noted Ken Cope, vice president of multifamily at Real Capital Solutions. “Real Capital was able to renovate about half of the property, or about 260 units, prior to bringing the asset to market. The buyer will be able to continue this value-add program into the future,” added McKenna. In addition to the value-add component Antero offered, its location also was key, McKenna emphasized. In February, a subsidiary of Sierra Nevada Corp. announced plans to build a new $88 million facility east of Antero at Colorado Springs Municipal Airport’s business park. “That location has some really exciting job growth coming in the next few years. The Sierra Nevada announcement of 2,100 high-paying jobs just to the east is a huge deal for that submarket and Colorado Springs in general. Antero should benefit tremendously as those jobs are brought on line.” Built in 1986, the community also is near employers within the defense industry, including Northrop Grumman, ITT Exelis, ITT Industries Inc., Doss Aviation, Integral Systems Inc., Raytheon Co. and Decisive Analytics Corp. RealSource, which invests in multifamily properties in select areas across the United States, currently has approximately $400 million in assets representing 4,865 units under management.
-Academy Corner LLC paid $1.95 million, or $163.81 per square foot, for a two-tenant retail building at the corner of North Academy Boulevard and West Montebello Drive in Colorado Springs. The 11,904-sf building at 5406- 5408 N. Academy was sold by a trust, according to public records. “The seller had relocated to Texas and wanted to sell his property in Colorado Springs,” said Matt Ritter of Pinnacle Real Estate Advisors. “The two-tenant retail property was a perfect fit for our buyer.” Ritter, along with Pinnacle’s Jeff Johnson, Peter Sengelmann and Cody Stambaugh, represented the buyer. The seller was represented by Dave Ankeney of Ankeney Inc. Built in 1980, the property is leased to a liquor store and a mattress store and across the street from a Target and Safewayanchored center. -Green Watt Power and Hammers Construction Inc. broke ground on Green Watt’s new 14,000-sf facility in northern Colorado Springs at 11665 Ridgeline Drive. The facility will serve as the headquarters for Green Watt Power, a division of Calex Manufacturing Co. Inc., and primarily will house warehouse and distribution activities for the company. Green Watt Power manufactures a variety of power products, including lithium ion battery chargers for electric scooters, electric motorcycles, etc., as well as DC-DC converters for electric vehicle applications and LED power supplies. Anticipated completion and move-in is anticipated in the fourth quarter. -Xerox Commercial Solutions renewed its lease at 2424 Garden of the Gods Road in Colorado Springs. It renewed its office lease for 50,190 sf. The landlord is Verizon Business Network Services. Greg Phaneuf and Peter Scoville of Colorado Springs Commercial, a Cushman & Wakefield Alliance represented the landlord.