COLORADO SPRINGS, CO - The Bascom Group in partnership with an affiliate of The Axton Group has acquired Summer Grove Apartments and Tanglewood Apartment Homes, two adjacently located apartment communities in Colorado Springs, Colorado.
Summer Grove and Tanglewood were constructed in 1971 and 1972, respectively, and are located at 3802 & 3803 Half Turn Road, Colorado Springs, Colorado. Bascom purchased Summer Grove, a 374-unit community, for $31,000,000, or $82,887 per unit. Tanglewood, a 112-unit community, was purchased for $10,150,000, or $90,625 per unit. Jake Young at CBRE brokered the transaction. Brian Eisendrath and Annie Rice at CBRE arranged the debt financing with Don Broderick and Erik Frandsen at TCF Bank.
Bascom's Senior Vice President and Principal, Jim Singleton, stated, "Summer Grove and Tanglewood are two well located properties with convenient access to strong employment centers, schools, and numerous retail and entertainment options. The Colorado Springs area continues its healthy growth driven by several ongoing and planned development projects, as well as investments estimated to bring nearly 3,000 jobs to the area. These new developments and the elite quality of life offered by Colorado Springs continue to attract a growing number of young professionals and families relocating to the area."
Paul Zakhary, Senior Vice President of Portfolio Operations, added, "This submarket has seen very little new construction of multifamily communities over the past several years considering the significant pace of population growth and strong demographic fundamentals. We see this acquisition as an excellent opportunity to complete improvements to these properties, while still offering tenants an attractive and affordable place to live."
Summer Grove and Tanglewood are conveniently located in central Colorado Springs within the Palmer Park submarket, situated along the highly trafficked North Academy Boulevard and Austin Bluffs Parkway. Located only 60 miles south of Denver and within minutes of Interstate-25, Powers Boulevard, and Downtown Colorado Springs, Summer Grove and Tanglewood provide residents convenient access to shopping, dining, and major employment centers throughout El Paso County. Colorado Springs is home to some of the largest employers within central Colorado, including Oracle, FedEx, the United States Airforce Academy, T. Rowe Price, UC Health Memorial Hospital, and St. Francis Medical Center.
A spokesman for The Axton Group, added, "The assets at Summer Grove and Tanglewood Apartments reflect a unique value proposition and align with our investment strategy at Axton, providing excellent in-place cash flow, margin of safety, as reflected by the substantial purchase price discount to sales comparables and replacement cost and an opportunity to enhance value through the repositioning of the properties via extensive exterior and interior renovations. We look forward to working with The Bascom Group to execute the business plan on this rare acquisition opportunity"