March 16-April 5, 2016 —
COLORADO REAL ESTATE JOURNAL
— Page 19
Colorado Springs/So. Front Range
by Jennifer Hayes
A “textbook” value-add apart-
mentproperty inColoradoSprings
was picked up by a Utah-based
buyer adding to its Colorado port-
folio.
Millburn & Co. paid $49.6 mil-
lion, according to public records,
for The Retreat at Cheyenne
Mountain.
“It was a perfect 1990s value-
add property,” Kevin McKenna of
ARA Newmark said of the 276-
unit community at 1735 Presiden-
tial Heights.
The property’s location in the
Broadmoor submarket, lack of
construction in the area, being situ-
ated on one of the biggest multi-
family sites in the city and the abil-
ity for rents to grow drew double-
digit offers, addedMcKenna, who,
withARANewmark’s Jeff Hawks,
Doug Andrews and Saul Levy,
represented the unidentified seller.
The sales price of around
$180,000 per unit also is the sec-
ond-highest price ever paid for
an apartment community in Col-
orado Springs – only second to
the $187,963 per unit paid for The
Pines at Broadmoor Bluffs.
Built in 1998, The Retreat at
CheyenneMountain features one-,
two- and three-bedroom apart-
ments, which are around 95 per-
cent occupied at the time of sale.
Apartments feature carpet or
plank flooring, as well as 9-foot-
high ceilings, kitchen pantries, and
garden tub and walk-in closets in
the bedrooms. Select apartments
also feature kitchens with a stain-
less steel appliance package, vault-
ed ceilings, built-in bookshelves,
gas fireplaces, a kitchen island and
attached garage.
Community amenities include a
heated swimming pool, picnic and
grilling area, business center and
community meeting room. There
also is an easily accessible clothes
care center on site. Reserved,
covered parking also is available
for models without an attached
garage.
The buyer plans to continue unit
upgrades and clubhouse improve-
ments started by the seller.
Other News
n
A Colorado-based national
self-storage real estate invest-
ment trust recently acquired a
50,810-square-foot Pueblo storage
facility at a price of $60.02 per sf.
The buyer paid $3.05 million for
the Affordable Storage Solutions
property at 90 Greenhorn Drive in
southern Pueblo. Built in phases
from 2008 to 2014, Affordable Stor-
age Solutions is one of the newest
self-storage facilities in the area. It
features visibility from Interstate
25, an institutional-quality leasing
office and is under 24-hour video
surveillance with electronic gate
access.
The property features one- and
two-story buildings that com-
prise 396 units with both interior
climate-controlled and standard
drive-up units.
“This acquisition further illus-
trates the willingness of our indus-
try’s largest companies to enter
secondary and tertiary markets
if the quality and yield is there,”
said
Adam Schlosser,
vice presi-
dent, investments, at
Marcus &
Millichap.
He, along with
Chico
LeClaire,
senior vice president,
investments, represented the seller,
a local private investor.
n
Commonwealth
recently
released its year-end apartment
sales report for Colorado Springs.
Over 2015, 30 apartment proper-
ties sold totaling 4,398 units with a
sales volume of $409.92 million –
below the total sales volume of just
over $472 million in 2014.
The report noted that three Class
A properties sold in 2015, totaling
616 units at an average of $166,153
per unit and $157 per sf. Sales
volume within the Class Amarket
totaled $102.35 million while the
top price per unit was The Pines at
Broadmoor Bluffs at $187,963.
The Class A market also saw
the highest price paid per sf com-
mandedby the 314-unit Sagebrook
at $161 per sf, however, it had the
lowest unit price at $155,255.
Within the Class B apartment
market, Commonwealth reported
four sales during 2015. The prop-
erties sold totaled 946 units with a
total sales volume of $107.75 mil-
lion. The highest price paid was
for theAdvenir at the Village (Sun-
set Creek), which commanded
$120,161 per unit and $130 per
gross sf. The property was built
in the late 1960s. The highest price
paid per sf was $145 for the 220-
unit Cheyenne Crossing while the
lowest price per unit was $100,000
for the 220-unit Union Heights
complex. Additionally, the lowest
price per sf was $112 paid for the
196-unit Parc at Briargate complex.
The report also noted five
Class C properties sold during
the year totaling 1,239 units for
a sales volume of $118.72 million
and an average price per unit of
$88,511 and $102 per sf. The sale
of the Alturus at Bell Tower, Com-
monwealth commented, was not
included in the Class C averages
as it “would have skewed the date
due to high price for location.”
The Class D submarket, defined
by Commonwealth as properties
older than 30-years-old, in poor
condition, in poor locations and
no or limited amenities, saw the
highest number of closings with
17 sales totaling 1,537 units and a
sales volume of $81.1 million due
to the value-add opportunities.
The highest price paid was for the
120-unit Wind River Apartments
at $62,542 per unit and the high-
est price per sf was for the 60-unit
Mesa Vista apartments at $115 per
sf. The lowest price paid per door
was $37,931 for the 58-unit Gallery
apartments and the lowest price
per sf was $48 for the 41-unit Tibu-
ron (Columbine) apartments.
s
The 276-unit Retreat at Cheyenne Mountain drew double-digit offers.
