Colorado Real Estate Journal - July 5, 2017
A “one-of-a-kind” apartment asset sold to a Denver-based buyer – one of a dozen groups competing for Bonterra Lakeside and indicative of the draw of Colorado Springs’ multifamily market. Bonterra Lakeside Apartments LLC, a limited liability company formed by Coughlin & Co., a Denver-based real estate firm, paid $28.6 million, according to public records for the 156-unit Bonterra Lakeside. “Bonterra Lakeside is truly a one-of-a-kind asset for its vintage. For this vintage, there is nothing else like it. They don’t build them like this anymore,” said Kevin McKenna of ARA Newmark. “It has an unbelievable setting, on top of a hill, overlooking Quail Lake in the high-end Broadmoor area.” The community features concrete tilt-up construction, units that average 1,100 sf, garages for every unit, washer and dryer hookups and has the bones of an 80s or newer community, added McKenna, who handled the sale with ARA Newmark’s Saul Levy. The pair represented the seller, Griffis/Blessing Inc., which had purchased Bonterra Lakeside in 2012 for $16.45 million, per public records. “We had a dozen-plus groups fighting over this. It was a very attractive asset in the Broadmoor area. Colorado Springs is one of the top markets in the country, so we’re getting lots of interest from around the country,” said McKenna. “Colorado Springs is checking a lot of boxes, not just from a rent growth or vacancy standpoint,” continued McKenna. The city’s job growth and record-low unemployment coupled with the high barriers to entry in the southwest Colorado Springs market as well as a lack of any market-rate projects in the pipeline – the last being built more than 15 years ago – was a draw for buyers to this asset and the market. More than half of the investors looking at Bonterra were new to the market, added McKenna. Constructed in 1973, the community at 890 Quail Lake Circle features a mix of one-, two- and three-bedroom units. Coughlin & Co. acquired the community as a value-add opportunity with plans to renovate interiors of the property. With the acquisition, Coughlin & Co. owns more than 720 units in the Colorado Springs market. It also owns the Copper Chase, Glen at Briargate and Parc at Briargate communities. Other News A Colorado Springs apartment building recently sold to a local buyer making plans for the property. The local investor paid $320,000, or $100.50 per square foot, for the multifamily building at 1025 Delaware Drive. Michael Krebsbach and Jamie Mitchell of Pinnacle Real Estate Advisors LLC represented the buyer and seller in the transaction. “The seller decided to move his equity back to his home state of California after owning the property for over 10 years. The buyer is a local Colorado Springs multifamily investor and plans to renovate the property to attain higher market rents and hold long term,” stated Krebsbach. The four-unit building comprises 3,184 sf. The United States AntiDoping Agency recently renewed and expanded its lease in Colorado Springs. The USADA signed a long-term renewal and expansion for 22,372 sf at Tech II at 5555 Tech Center Drive. It leased the space from Tech II LLC. Peter Scoville of Colorado Springs Commercial, a Cushman & Wakefield Alliance represented the tenant. Brian Wagner of NAI Highland represented the landlord.