A California investment group made its first Colorado acquisition with its purchase of a value-add Colorado Springs apartment community.
PLC Apartments of Newport Beach, California, paid $21.9 million, or $130,357 per unit, for The Centre Apartments.
Located at 1921 E. Van Buren St., the 168-community, built in 1952, was a sought-after asset by both in- and out-of-state buyers in a competitive bidding process.
“Many of these buyers are specifically targeting Colorado Springs due to its quality of life, growing population and economy. With the new supply of apartments coming on line falling short of demand, most investors think Colorado Springs will continue to show positive rent growth for some time,” said Craig Stack of Colliers International.
In addition, several domestic investors, who were investing on behalf of foreign investors, were interested in The Centre Apartments.
Stack, along with Bill Morkes of Colliers International, represented the seller, Skyline Real Estate Investments, a local partnership.
The sale represents the second time that Colliers International has sold the property since 2012 and the property has undergone improvements such as vinyl plank flooring, new lighting fixtures and new windows throughout most of the property, as well as a new clubhouse and workout facility, added Stack.
PLC Apartments plans to make improvements, including adding stainless steel appliances and an overall higher-end finish.
The Centre Apartments features a mix of one-, two- and three-bedroom units with “spacious” floor plans at the park-like community with a low density of just over 15 apartments per acre.
At the time of sale, the community was around 95% occupied.
Colliers International also recently sold the Palmer Park Apartments in Colorado Springs, the sister property to the Centre, which sold for the same price per unit.
