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Watermark on Union trades at record price

At $262,295 per unit, the price for Watermark/Aliso appears to be a record per-unit price paid for any multifamily product in Colorado Springs.

A Santa Barbara, California based buyer is making its mark on Colorado Springs with not only its second apartment acquisition in the market but also its second of a prestabilized asset in the city.

NALS Apartment Homes, a fully integrated real estate investment firm, purchased the Watermark on Union apartment community, renamed Aliso Briargate, for $64 million, according to public records.

Its purchase of the 244-unit community follows NALS Apartment Homes’ purchase of the prestabilized Overlook at Interquest property, which sold in 2019 at the then record setting per-unit figure of $251,894.

At $262,295 per unit, the price for Watermark/Aliso appears to be a record per-unit price paid for any multifamily product in Colorado Springs, according to data from Apartment Insights, a comprehensive apartment database website.

“Watermark on Union was 65% occupied at the time of sale, demonstrating the buyer’s belief in their ability to fully stabilize the property in the coming months,” stated Kevin McKenna of Newmark Knight Frank Multifamily, noting that NALS’ previous purchase of the prestabilized Overlook at Interquest and subsequent lease-up of it gave it confidence moving forward on this acquisition.

“As one of the leading communities in the metro area, Watermark on Union is well positioned to capitalize on the growth this market anticipates in the foreseeable future.”

McKenna and NKF Multifamily’s Saul Levy represented Watermark Residential, a national multifamily development and residential management company, in the sale of the community completed just recently at 4562 Continental Heights, in the master-planned Cordera community.

Aliso Briargate is surrounded by homes that average $580,000 and the average household income within a 1-mile radius of the development in northern Colorado Springs is $148,000. To the west of Aliso Briargate is Memorial Hospital, which recently completed a new $110 million, 170,000-square-foot facility in partnership with Children’s Hospital. Other major employment hubs, in addition to the health care facilities, near Aliso Briargate include Briargate Business Park and retailers such as SuperTarget, Lifetime Fitness, King Soopers and Lowe’s, all within walking distance.

“Average rents continue to rise and reach new highs in Colorado Springs,” noted Levy. “These gains have resulted in an annual rent growth of 8.6% for 2019. The north submarket maintains strong demographics and consistently produces the highest rents and strongest absorption in the metro area.”

Amenities at the garden style Aliso Briargate include a clubhouse, resort-style pool with cabanas, fireside lounge, fitness center, yoga studio, detached garages, courtyards with barbecue grills, outdoor entertainment center with kitchen and lounge areas, children’s playground, a dog park and wash station.

Apartments include backsplashes, undermount sinks, recycled glass countertops, stainless steel appliances, 9- to 12-foot ceilings, garden tubs, private balconies, and full-size washers and dryers. Aliso Briargate features a mix of one-, two- and three-bedroom apartment units.

Aliso Briargate is the latest purchase of NALS Apartment Homes, which owns six communities across Colorado and 47 across the country.

Featured in CREJ’s March 18-31, 2020, issue