A Colorado Springs-based buyer continues to expand its portfolio with its $28.1 million acquisition of the Village at Lionstone – a purchase pointing to growing activity in the city’s southeast multifamily submarket.
All Pro Capital paid $97,569 per unit to Seagate for the 288-unit gated Village at Lionstone community.
“All Pro Capital’s purchase of the Village at Lionstone will continue our expansion within a strong apartment market,” said Brian Bahr, president of All Pro Capital. “This $28.1 million acquisition provides our investors the benefit of participating in a large, income-producing asset that wouldn’t otherwise be available to small investors. It fits our investment objectives and will deliver a great return. We were also glad to continue our relationship with the manager, Griffis Blessing, who has done great work for us in the past.”
Located at 255 Lionstone Drive, near the intersection of South Academy Boulevard and East Platte Avenue, the community is within walking distance of the Murray Square Shopping Center, less than five minutes from FedEx’s new $20 million distribution facility, as well as less than 15 minutes from the Colorado Springs Airport.
“The Village at Lionstone presented an excellent value-add opportunity from an investment standpoint,” said Jake Young, senior associate, CBRE Denver Multifamily Investment Properties. “The community offers open floor plans, generous amenities and a convenient location with access to major thoroughfares including Powers Boulevard, Academy Boulevard and I-25.”
Young, along with Dan Woodward, Dave Potarf and Matt Barnett of CBRE Denver Multifamily Investment Properties, represented the seller. Brady O’Donnell with CBRE Debt and Structured Finance arranged financing for the buyer.
All Pro Capital expects to continue capital improvements started by Seagate at Village at Lionstone, which was built in 1984. Recent common-area capital improvements added by Seagate included a new fitness center, clubhouse, in-ground spa, playground, carports and dog run as well as a renovated, solar-power heated laundry facility and swimming pool, fire pit and barbecue areas.
Seagate also upgraded 26 units with new flooring, lighting and plumbing fixtures and stainless steel appliances. The property, comprised predominantly of two-bedroom, two-bath floor plans, consists of one- and two-bedroom units averaging 846 square feet.
Other features of the community include a business center, game/theater room, covered parking and views of Pikes Peak.
Occupancy at the time of sale was around 95 percent.
CBRE Denver Multifamily Investment Properties group also recently handled the sale of the Woodside Townhomes at 3562 Lenoso Terrace in Colorado Springs.
The community, also in Colorado Springs’ southeast submarket, was purchased by California-based Fresh Water, which paid $6.42 million, or $89,167 per unit, for the 72-unit townhome property.
Southern Highland Partners LLC sold the community, constructed in 1986.
With the activity – the multiple offers that came in, the lots of tours – we are seeing just locationwise the coming around of the southeast. People see this as a better yield play than having to pay the prices in Denver or than in the more core parts of the Springs in the north and the west.”
The buyer acquired the property as a value-add acquisition, noted Young, adding the townhome-type, 100 percent two-bedroom product is not typical apartment product for the southeast Colorado Springs market.
At the time of sale, the Woodside Townhomes had around occupancy of 96 percent.
The sales of both southeast communities speak to the growing activity in the southeast market, commented Young.
“The southeast has been a little softer over historical norms, but that is definitely changing,” said Young, highlighting several major job announcements, such as FedEx’s new distribution facility, Sierra Nevada bringing several thousand jobs to the airport area and Raytheon expanding its employment by 700 jobs.
“The southeast is definitely getting some legs,” he added.