An Idaho-based real estate investment company expanded its Colorado presence with its purchase of The Presidio.
Alturas Capital Partners paid $12.29 million for The Presidio, an 81,222-square-foot Class A office building at 1155 Kelly Johnson Blvd. in northern Colorado Springs.
“We did have very solid interest,” Patrick Devereaux of JLL said of the level of activity on The Presidio. “We’re definitely experiencing an expansion in the depth of buyers pursuing assets in Colorado Springs as the economic resurgence in Colorado Springs continues.
“The Springs has tremendous leasing activity, particularity in the northern Interstate 25 corridor, and a lot of that is being driven by an increase in millennial population and job growth,” he continued. “To millennials, Colorado Springs offers a lifestyle at a considerable discount to Denver that is very appealing.”
Devereaux, alongside Colorado Springs Commercial, a Cushman & Wakefield Alliance’s Peter Scoville and Greg Phaneuf, jointly listed the four-story office building for seller Presidio Property Trust Inc. Scoville and Phaneuf also handled leasing of The Presidio, which was 89 percent leased but with “significant” leasing during the due diligence period, the occupancy rate rose to 95 percent.
The Presidio is home to 23 tenants representing a group of industries including health care, technology and financial services.
The Presidio is located on 4.12 acres with Interstate 25 visibility as well as walkable access to numerous retail and restaurant amenities. Alturas Capital Partners, which had been looking for some time for acquisitions in the Colorado Springs market, had been unable to find the right opportunity until The Presidio came along. Additionally, the additional leasing of the office building during due diligence created significant value prior to acquisition and provides for a very attractive yield once the tenant is in occupancy, according to an Alturas Capital release regarding the acquisition.
The buyer is planning to make upgrades to the lobby, elevators, lighting and parking lot. Long term, Alturas also is evaluating possible changes to the landscaping and signage.