Blue Dot Place sells to local ownership group for $13 million
The first multifamily community constructed in downtown Colorado Springs since the 1960s sold to local buyers planning to continue the legacy of the property.
Local buyers Ray, Tim and Brian Rhodes paid $13 million, or $393,393 per unit, according to public records, for Blue Dot Place, a 33-unit community at 412 S. Nevada Ave.
The price per unit set a new high water-mark for the Colorado Springs multifamily sector, eclipsing the pricing per unit achieved with the sale of the larger Volta at Voyager and Aliso Briargate communities earlier this year of $263,000 and $262,295 per unit, respectively.
Newmark’s Saul Levy and Kevin McKenna, who represented sellers Darsey Nicklasson and Kathy Loo, declined to comment on the pricing of the community, however, spoke of the significance of the development of the multifamily community built in 2016 – the first for-rent multifamily product built in the city’s downtown since the 1960s.
“The development of Blue Dot Place was a milestone for the resurgence of the downtown Colorado Springs market. With a gap in the development pipeline of 60 years, the property has been a beacon of growth and attracted further development to downtown Colorado Springs,” said Levy, noting the community has catalyzed surrounding development in downtown and achieving rents of $2.11 per square foot while new suburban communities are achieving rents of approximately $1.75 per sf.
There was a significant amount of interest in the asset from a variety of buyers, including East and West Coast buyers, with double-digit offers received on Blue Dot Place.
“We felt an incredible responsibility to select a local buyer with stake in the community for Blue Dot Place, as it was always more than a development project to us. The project was about using residential development to contribute to the revitalization of a community and I think we truly accomplished that,” said Nicklasson. “We are thrilled to pass the reins to the Rhodes family and know that they will be stewards of the local Colorado Springs community as we have worked to be.”
“With our family having been in the Colorado Springs area since the 1960s, we were particularly excited to see Darsey and Kathy close the gap in new residential development which has been so long-standing in downtown,” commented Tim Rhodes. “It is important for us to continue the legacy of Blue Dot Place and to build on the successful groundwork that Darsey and Kathy helped lay for downtown Colorado Springs’ renaissance. We are excited to purchase and take over such an amazing building with such strong community support.”
Nicklasson and Loo, Colorado Springs residents, partnered in 2013 to bring the Blue Dot Place development to the city’s core, which since its completion has been nominated for several awards, including Best Infill Project by Urban Land Institute Colorado in 2016.
Blue Dot Place comprises a mix of one- and two-bedroom units. Apartments feature private balconies, natural lighting, air conditioning, 10-foot ceilings, quartz countertops, spacious kitchens, in-unit washers and dryers, hard-surface flooring, ceiling fans, open floor plans, keyless entries and EnergyStar appliances.
In addition to its downtown location, the community features a dog run, on-site storage, garage parking, indoor bike parking, bike wash/workstation, electric car charging, dry cleaning pick-up and delivery, solar panels, car service membership, compost and recycling, and easy access to Interstate 25.
The property also features three commercial spaces, one of which is occupied by a coffee shop.
Featured in the December 2-15, 2020, issue of CREJ