COLORADO SPRINGS, CO - Hamilton Zanze, a San Francisco-based real estate investment company, recently sold 292-unit Spring Canyon Apartments in Colorado Springs, CO for $40.5 million ($138,699/unit). ARA Colorado brokered the deal.
Hamilton Zanze, which primarily invests in multifamily communities in the Southwest, Pacific Northwest, and Mountain states, purchased Spring Canyon in November 2004 for just over $28 million. During its ownership, Hamilton Zanze established new onsite management through Mission Rock Residential and executed a value-add program that included unit renovations and enhancements to the clubhouse and fitness center. The upgrades allowed the operator to secure significant rent premiums and achieve all-time high monthly revenues at the time of the sale.
“Spring Canyon was one of Hamilton Zanze's earliest transactions. We have held the property for almost ten years, and we have seen the property excel over the hold period. The sale price and returns we were able to achieve speak to the strength of the submarket and quality of asset,” said Hamilton Zanze’s Chief Investment Officer Kurt Houtkooper of the transaction.
Hamilton Zanze currently owns and operates 77 properties (15,675 total units) across nine states. The company is looking to sell more assets in its Colorado portfolio this year to take advantage of favorable selling conditions.
Summary of the Disposition
• 292-unit Class B multifamily property built in 1997
• Located in the strong Colorado Springs submarket
• HZ achieved all-time high monthly revenues at sale as a result of a successful value-add program and efficient onsite management
• HZ has sold 4 properties in 2014 and 8 Colorado properties in the last 12 months
Hamilton Zanze is a private San Francisco-based real estate investment company that acquires, repositions, and operates apartment communities. Since our founding in 2001, Hamilton Zanze has acquired over $1.65 billion in multifamily investments across 10 states in the Western and Southwestern U.S. The company currently owns and operates 77 properties (15,675 total units).
Mission Rock Residential performs onsite and off-site property management for apartment communities in the U.S. Mission Rock is headquartered in Denver, CO and has a regional office in Phoenix, AZ.