A real estate investment and asset management company made its Colorado Springs debut with its record-setting acquisition of Commons at Briargate.
New York City-based Rivendell Global Real Estate paid $44.5 million, or $229,381 per unit, for the Commons at Briargate – the highest price per unit ever recorded regardless of vintage for the sale of a Colorado Springs apartment community.
“The record-setting sale of Commons at Briargate not only illustrates the strength of the market but also the uniqueness of the asset and its location,” said ARA Newmark’s Kevin McKenna. “The property is one of a kind in the Colorado Springs market because each unit boasts a direct-access garage – a feature not present in any other multihousing asset – and renovations have been made throughout 80 percent of the units with finishes comparable to those in new product.
“The property is commanding some of the highest rents in the city and will continue to have an exceptional advantage,” he continued, noting the Southern Colorado city is ranked as one of the top five cities in the United States in terms of rent growth. “Competitive interest in the property led to 15 offers. Most top bidders were new to the market, drawn to strong market fundamentals, increased employment growth, limited product and nationally ranked rent growth.”
McKenna and ARA Newmark’s Saul Levy represented partners Lyon Living, a residential development company, and Barings Real Estate Advisers, part of Barings LLC, a global financial service firm acting on behalf of an institutional investor, in the sale of the 194-unit asset.
Located at 2845 Freewood Point, Commons at Briargate has an irreplaceable location within minutes of major medical development, prominent employers and highend retail, added McKenna.
Commons at Briargate is adjacent to the 2 million-square-foot Briargate Business Campus, which is home to tenants such as USAA, Kaiser Permanente and T. Rowe Price, less than five minutes from The Promenade Shops at Briargate, which features retailers such as Apple, Pottery Barn and Williams Sonoma, and is near both St. Francis Medical Center and Memorial Hospital, both of which have $100 million projects/expansions underway.
In addition to direct-access garages, the community, constructed in 1996, boasts “condo-quality” floor plans that average more than 1,000 square feet, 9-foot ceilings, full-size side-by-side washers and dryers, granite or quartz countertops and wood-burning fireplaces.
Rivendell is anticipated to renovate the balance of the units as well as extend the pool deck. Earlier this year, Rivendell completed the $600,000 per unit acquisition of 17*Walnut, a 26-unit community in Boulder’s East End. The price represented the highest price ever paid per unit for a conventional apartment community in Colorado.
Rivendell also owns The Hub, an 83-unit community in Boulder.