Monument’s newest, market-rate apartment property recently sold for $57.82 million.
The buyer, a private investment group, paid more than $216,000 per unit for the Vistas at Jackson Creek, a 267-unit community approximately one-half mile east of Interstate 25.
“Colorado Springs is one of the top-performing apartment markets in the country currently and northern Colorado Springs, which includes Monument, has some of the area’s highest rents,” said Nick Steele, senior associate, Marcus & Millichap, noting the Vistas at Jackson Creek to his knowledge is the only newly built, market-rate property in the entire town, which boosted its appeal.
Additionally, “Vistas at Jackson Creek is positioned to benefit from the continued strength of the Colorado Springs market as well as rapidly growing suburban Denver communities to the north. The asset should prove to be a well considered investment for our clients for years to come.”
Steele along with Marcus & Millichap’s Jacob Steele, first vice president of investments, represented the buyer, which purchased the property as part of a 1031 exchange. The two also represented the group on the sale of its relinquished property as well.
Built on more than 14 acres at 16112 Old Forest Point, the two-phased community was built in 2014 and 2016, and is located south of downtown Monument off Jackson Creek Parkway. Vistas at Jackson Creek features a mix of one-, two- and three-bedroom units in 12 three-story walk-up buildings. Amenities include a clubhouse, playground, dog wash station, swimming pool/hot tub, fitness center, business center, guest suite, detached garages and a coffee bar.
In-unit features include custom cabinetry, granite countertops, washers/dryers, walk-in closets and wood-plank flooring. In October, Vistas at Jackson Creek earned the U.S. Environmental Protection Agency’s Energy Star certification.
At the time of sale, the community was between 97 and 98 percent occupied.
Vistas at Jackson Creek was sold by CSI Construction.
PGIM Real Estate Finance, the commercial mortgage finance business of PGIM, the global investment management business of Prudential Financial Inc., provided a $48.13 million loan for the acquisition.
Marcus & Millichap Capital Corp. arranged the loan. The nonrecourse debt placement was structured with a 35-year fully amortizing loan term and a fixed interest rate of 3.49 percent through the U.S. Department of Housing and Urban Development 223(f) permanent loan program.
“This is the largest single permanent HUD-insured loan closed in Colorado in the past 12 months,” said Phillip Gause, vice president capital markets in MMCC’s Denver office, who arranged the loan.
“The Colorado multifamily market’s strong and steady upward trajectory has boosted the buying power of private investors to the point where they can compete with institutional capital for institutional-quality assets,” he added. “In this transaction, we worked closely with one of our exclusive correspondent capital partners, PGIM Real Estate Finance, to deliver exceptional terms and put our client in position to close weeks ahead of schedule. The property also qualified for HUD’s Green MIP Reduction program, which improves the borrower’s cash flow substantially.”
“This transaction highlights our ability to utilize HUD 223(f) for acquisition financing. There were many moving parts and tight timelines, but we exceeded expectations through our focused and experienced underwriting and processing teams,” added Patrick Kempton, principal and transaction lead for PGIM Real Estate Finance. “As a newly constructed apartment complex in a desirable location between Denver and Colorado Springs, Vistas at Jackson Creek makes a great addition to our portfolio.”
In this article
- Headline News
- Colorado Springs
- Marcus & Millichap
- Southern Colorado
- Vistas at Jackson Creek
- arranged the loan
- colorado springs
- estate finance
- jackson creek
- marcus millichap
- pgim real estate
- pgim real estate finance
- real estate
- real estate finance
- vice president
- vistas at jackson
- vistas at jackson creek