COLORADO SPRINGS, CO - Atlanta-headquartered ARA, the largest privately held, full-service investment advisory brokerage firm in the nation focusing exclusively on the multihousing industry, recently brokered the sale of the Fillmore Ridge apartment community, in Colorado Springs, Colorado.
ARA Denver-based senior associate, Kevin McKenna and senior vice president, Ken Greene represented the seller, Seagate Properties, a California-based real estate investment company, in the transaction.
LocalConstruct, a California-based real estate developer, investment, and management company, purchased the property for $6,050,000, which represents a price per unit of $53,070, and a price per square foot of $81.81.
Kevin McKenna said, “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.”
The Colorado Springs metro area economy has been gaining momentum in 2012. In May, employment increased 2.74% year-over-year, representing the strongest monthly employment growth for the area since January 2006. In concert with the growing economy, apartment vacancies have dropped to 6.0% while effective rents in the area have shown increases of 7.6%, according to the Colorado Springs 2Q 2012 Vacancy and Rent Survey.
Constructed in 1965 and recently updated, Fillmore Ridge offers residents an array of upgrades to both individual units and common area space.
McKenna explained, “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. 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.” Seagate continues to own more than 1,000 multi-family units in Colorado and is actively seeking additional value-add opportunities.
The property was 91% occupied at the time of closing.
To schedule an interview with an ARA executive regarding this transaction or for more information about ARA, please contact Lisa Robinson at lrobinson@ARAusa.com or 678.553.9360, or Amy Morris at amorris@arausa.com or 678.553.9366; locally, Kevin McKenna at kmckenna@ARAusa.com or Ken Greene at greene@ARAusa.com, or 303.260.4400.
About ARA
Atlanta-headquartered ARA is the largest privately held, full-service investment advisory firm in the nation that focuses exclusively on the brokerage, financing and capital sourcing of multihousing properties including conventional, affordable, distressed assets, notes sales, seniors, student & manufactured housing and multihousing land. ARA is comprised of the country’s top investment professionals who leverage a unique and fully integrated cooperative business platform of shared information, relationships and technology driven solutions. ARA’s unified enterprise approach ensures that clients are delivered the broadest asset exposure, effective matching of buyers and sellers, and the shortest transaction timeframes in the industry. The combination of resources, unparalleled market expertise and nationwide presence in the multihousing marketplace has resulted in average annual production volume of $5.4 billion in real estate transactions since 2004. For detailed information on ARA’s extensive multihousing investment services, visit www.ARAusa.com