A new buyer to the Colorado Springs market purchased the Advenir at Spring Canyon apartment community at record pricing.
Benedict Canyon Equities paid $69.3 million, according to public records, for the 292-unit community at 4510 Spring Canyon Heights.
At $237,329 per unit, the price appears to be a record per-unit price paid for 1990s product in Colorado Springs, according to data from Apartment Insights, a comprehensive apartment database website.
Newmark Knight Frank Multifamily’s Kevin McKenna and Saul Levy, who provided strategic consulting services to the seller, Advenir LLC, declined to comment on pricing.
However, McKenna shared that, “Advenir at Spring Canyon presented investors with an exciting opportunity to acquire a rare 1990s community in the highly desirable west side of Colorado Springs.
“Due to geographical constraints, high barriers to entry in the west side have resulted in limited supply, with only one market-rate multifamily community built in northwest Colorado Springs in the last 20 years. These factors ensured a very competitive bid process for Advenir at Spring Canyon, with several offers on the table.”
The 19-building, two- and three-story property was built in 1997. It is located near recreation, employment, shopping, restaurants and breweries, with Garden of the Gods less than a mile away. It also is situated in Colorado Springs’ west submarket, which has some of the highest rents and lowest vacancies in the city, and over the past five years, rents have grown 33%, according to NKF Research.
“Advenir at Spring Canyon also provides the new owner strong value-add potential,” added Levy. “A successful entry-level renovation program was previously implemented at the apartment community. However, there is ample opportunity to take the current renovations to a higher level, as well as finish out the remaining unrenovated units. In addition to unit upgrades, the new ownership can add additional amenities such as gas fire pits in the pool area, package rooms and a coworking space to make the community even more desirable to residents and increase rents relative to the market.”
Rebranded Artemis at Spring Canyon, the community features a resort-style swimming pool with a deck, spacious clubhouse, fitness center, hot tub, business center, basketball court, dog park, detached garages and one-to-one carports. Apartments include 9-foot ceilings; stainless steel appliances; faux wood blinds; wood-style flooring; full-size, side-by-side washers and dryers; private balconies/patios; and fireplaces in select units.
At the time of sale, Artemis at Spring Canyon, which features one-, two- and three-bedroom units, was 95% occupied and sought after by primarily out-of-state investors drawn to Colorado Springs’ job, wage, rent and population growth as well as the diversity of economy, added McKenna.
Additional transactional assistance was provided by NKF Multifamily Capital Markets Debt & Structured Finance Vice Chairman Mitch Clarfield.
