Colorado Real Estate Journal - October 4, 2017
A California-based buyer is branching out with an acquisition in Colorado Springs. Green Leaf Partners paid $59.25 million, or $227,884 per unit, for the Encore at Rockrimmon, renamed Green Leaf Rockrimmon. The 206-unit community, built in 2014, garnered significant interest from buyers big and small. “There was a very good turnout of interest,” Jake Young of CBRE said of the level of attention seen in the multifamily asset. “A lot of focus and attention is shifting down to Colorado Springs with what is going on with rent growth and a diversifying job and population base, and just the more affordable living as compared to Denver. “I think that’s turned a lot of investor attention down there both big and small. The private client side always has been there, but the institutional buyers are now looking there as well,” Young added. Young, along with CBRE’s Dan Woodward, David Potarf and Matt Barnett, represented the seller in the transaction. CBRE declined to identify the seller, however, according to public records, Nor’wood Development Group sold the community at 5824 Walsh Point. At the time of sale, Green Leaf Rockrimmon had a stabilized occupancy above 95 percent. Green Leaf Rockrimmon features a mix of one-, two- and three-bedroom units ranging from 790 to 1,142 square feet. Apartments feature 9-foot ceilings, granite countertops, washers and dryers, and balconies. The community also features attached and detached garages, a theater room, clubhouse, on-site maintenance, bicycle repair station, pool, outdoor fireplace, fitness center and spa. In addition to the Rockrimmon property, Green Leaf owns additional assets in Colorado, including Green Leaf Stone Cliff in Aurora, Green Leaf RockVue in Broomfield and Green Leaf Riverside in Littleton. Other News •An investor made its first acquisition of a retail property in Colorado Springs with the purchase of The Shops at Garden of the Gods. The buyer, a high-net-worth investor from California, paid $3.4 million for the 7,931-square foot strip center at 532-536 Garden of the Gods Road. Matthew Henrichs, Parker Brown and Brad Lyons of CBRE Capital Markets, National Retail Partners in Denver represented the seller, Republic Investment Group of Denver, and sourced the buyer. “For a relatively small footprint, The Shops at Garden of the Gods had a lot going for it, including its high-profile corner location, Class A renovations and the security of long-term cash flow from three internet resistant, credit lease tenants,” said Henrichs. Built in 1977, the center underwent renovations that were completed earlier this year. Upon completion of the renovations, three national retailers joined the center: Qdoba Mexican Eats, FedEx Office and Cricket Wireless. Each tenant signed a long-term lease, bringing the property to 100 percent occupancy. The center sits on a 0.75-acre site in west Colorado Springs, just off Interstate 25, with Gardens of the Gods Road frontage. “Given the scarcity of quality small-format retail offerings in Denver proper, the investor who purchased this property looked to an ‘A quality’ infill location in Colorado Springs as an avenue to entering the Colorado investment market,” said Henrichs. “Investors from across the country are actively pursuing secondary and even tertiary markets along the Colorado Front Range to bolster their real estate portfolios.” •An unnamed buyer growing his Springs apartment portfolio picked up the Redwood Terrace Apartments. The 16-unit building, located at 1480 Hathaway Drive in Colorado Springs, sold for $1.12 million, or $103.24 per sf. Michael Krebsbach and Jamie Mitchell of Pinnacle Real Estate Advisors LLC represented the seller in the transaction. “The seller owned Redwood Terrace for the past 13 years. The family decided it was time to take advantage of today’s historically high prices by selling. They are ready to retire and simplify their life. The buyer whom was represented by an outside broker was looking to grow his Colorado Springs apartment portfolio by acquiring Redwood Terrace,” stated Krebsbach. •AT&T Corp. renewed its office lease at Patriot Park I, at 985 Space Center Drive in Colorado Springs. It leases 9,610 sf at the building from landlord CV Patriot Springs LLC. Peter Scoville of Colorado Springs Commercial, a Cushman & Wakefield Alliance represented the landlord. The tenant was represented by Cushman & Wakefield of Texas.