Colorado Real Estate Journal - October 21, 2015
A Miami-based real estate company grew its multifamily presence in Colorado with its acquisition of a Colorado Springs community with an “unmatched” location in the city. Advenir Inc. paid $37.25 million, according to public records, for Sunset Creek, a 310-unit community located near Colorado Springs’ fastest growing developments. “The location is at the epicenter of everything that is new and exciting in Colorado Springs,” Kevin McKenna of ARA Newmark said of the community at 5400 N. Nevada Ave. “The University of Colorado Colorado Springs, the fastest growing campus in Colorado, is just across the street and the busiest retail center in town, which includes Costco and Trader Joe’s, is next door. A new hospital is under construction to the north and the property backs up to the Santa Fe Trail system.” Advenir saw tremendous value in Sunset Creek not only due to its location but also its exceptional setting and low lot density, added McKenna. “Sunset Creek sits on a massive 27-acre lot. It’s one of the largest multihousing sites in Colorado Springs, making it one of the least dense communities in the market at only 11 units per acre. These elements, combined with the property’s proximity to local attractions, make the acquisition an inimitable opportunity for Advenir.” McKenna, along with ARA Newmark’s Doug Andrews, Jeff Hawks and Saul Levy, represented seller Seagate Sunset Associations LLC in the transaction. Seagate acquired the community, constructed between 1966 and 1969, in 2012 and spent nearly $2.5 million in property improvements before bringing the community to market. “They did a fantastic job renovating the clubhouse and pool area, bringing it to a level that is competitive with Class A communities. They also renovated roughly 10 percent of the units and achieved notable rent increases as a result. The buyer plans to pick up where Seagate left off by continuing the valueadd program throughout the interior.” The value-add aspect coupled with its location spurred the double-digit offers received on the asset, he added. At the time of sale, Sunset Creek was approximately 90 percent occupied. McKenna and Levy also recently represented the seller of the Wind River Place apartment community in Colorado Springs. Vukota Capital Management added to its Springs portfolio with its $7.51 million purchase of the 120-unit community at 919-935 N. 19th St. Constructed in 1973, Wind River has consistently had a historical occupancy above 95 percent, with 98 percent occupancy at the time of sale. “We had a number of investors looking for an opportunity to acquire a turnkey asset in a desirable location. This property’s buyer will have a strong return without having to push rents through a renovation program and can ride the wave of a rapidly improving rental market,” said McKenna. The property has had several capital improvements, including updated double-pane vinyl windows, new paint, signage and a full parking lot reseal and stripe. “The property is located in arguably the strongest submarket in Colorado Springs and is an affordable alternative to nearby properties that are charging $100 to $300 more in rent. This property has a beneficial niche in the market, which has led to its consistently strong occupancy rates,” he added. Local Construction, a private real estate investment and development company, sold the property to Vukota, which also recently purchased the Villages at Woodmen in Colorado Springs. Wind River is located within eight minutes of Garden of the Gods and is walking distance of King Soopers, Walgreens, Ace Hardware, Petco and Subway.