San Francisco-based real estate firm Hamilton Zanze acquired its latest Colorado Springs apartment community with its $71 million, or $195,055-per-unit, purchase of the Bella Springs Apartments.
The 364-unit community at 1050 Milano Point in north Colorado Springs was sold by Praedium Group of New York.
“Bella Springs presented a true value-add opportunity located in a favorable submarket,” said David Nelson, managing director of acquisitions for Hamilton Zanze. “The asset offers a desirable mix of one-, two- and three-bedroom units with direct-access garages, which fits very well with the demographics and demands in the Colorado Springs market.”
“Bella Springs combines a quality location with strong surrounding demographics and healthy historical fundamentals. The property has been well maintained by high-quality owners for more than a decade, while the ability to add value through unit upgrades is readily available,” added Jake Young, vice president, CBRE Capital Markets, Colorado Multifamily Investment Properties.
Young, along with Dan Woodward, David Potarf and Matt Barnett of CBRE Capital Markets, Colorado Multifamily Investment Properties, represented the seller in the off-market transaction.
Hamilton Zanze is expected to make upgrades to the Tuscan-styled property. Work will include interior renovations on the remaining 82 nonrenovated two- and three-bedroom units and enhancing the property’s amenity package by improving the pool area and adding a dedicated dog park.
Built in 2002 in the North Gate neighborhood, the property is located down the street from Polaris Pointe, one of the area’s newest mixed-use developments with more than 50 shopping, dining and entertainment retailers. The property also is located within the Academy District 20 school district and is near the U.S. Air Force Academy.
Bella Springs features units that average 855 square feet. Apartments include walk-in closets, a kitchen pantry, wood-style flooring and a private balcony or patio.
Community amenities include garages and carports that are available to rent, two swimming pools, a hot tub, a fitness center, barbecue and picnic areas and clubhouse/coffee lounge. The community also is pet friendly.
At the time of sale, occupancy was stabilized and around 95 percent, commented Young.
The management of the property has been transitioned to Hamilton Zanze affiliate Mission Rock Residential, a Denver-based company.
With the addition of Bella Springs, Hamilton Zanze now owns and operates five properties in the Colorado Springs market, including Resort at University Park Apartment Homes, Broadmoor Ridge Apartment Homes, Mountain View Apartment Homes and The Knolls at Sweetgrass Apartment Homes.
“We have been fortunate to work on many multifamily property transactions in Colorado Springs over the past year, and with the Bella Springs sale we continue to see incredible investor appetite in this market,” said Barnett, senior vice president, CBRE Capital Markets, Colorado Multifamily Investment Properties.
“There is still a ton of interest in Colorado Springs,” added Young, noting that national players and real estate investment trusts that have been in Denver for a long time are turning to Colorado Springs to try to chase yields. “They really see the Springs as a good place to go.”
