COLORADO SPRINGS, CO - Atlanta-headquartered ARA, the largest privately held, full-service investment advisory brokerage firm in the nation focusing exclusively on the multihousing industry, recently brokered the sale of Village East, a 137-unit apartment community in Colorado Springs, CO. ARA Colorado vice president, Kevin McKenna, and senior vice president, Ken Greene, represented the seller, Hamilton Zanze & Company, a San Francisco-based real estate investment company, in the transaction.
American Capital Realty, a Southern California and Central Colorado focused real estate company, purchased Village East for $9,068,000, which represents a price per unit of $66,189, and a price per square foot of $87.96. The property was 97% occupied at the time of closing.
Kevin McKenna explained, “This sale demonstrates that multifamily pricing in Colorado Springs remains very strong despite the uptick in interest rates we've seen this summer.”
“Having executed our business plan, we determined it was the right time to sell Village East.” reported Katie Wilson with the seller, Hamilton Zanze. “There is more an owner can do to improve the property and we feel this buyer is the right fit and will do well in the coming years.”
McKenna added, “There's ample opportunity to add value by updating the clubhouse, adding a fitness center, business center, and updating the interiors with more modern finishes. Implementing an energy efficiency upgrade program with new double pane windows, xeriscaping, and low-flow fixtures will add substantial additional savings to the bottom line.”
Constructed in 1973 and updated in the latter half of the past decade, Village East is a well maintained property. The property is located in a strengthening submarket bolstered by its proximity to the Peterson and Schriever Air Force Bases and the defense contractors that are associated with the bases. The shift in job growth within the submarket is fueled by the North American Defense Command (NORAD) relocating their base of operations from underneath Cheyenne Mountain to Peterson Air Force Base just one mile from Village East. These growing bases are expected to continue to have a positive effect on the surrounding housing market as their current on-base housing is fully occupied, and they do not have plans to expand their housing inventory in the foreseeable future.
To schedule an interview with an ARA executive regarding this transaction or for more information about ARA, please contact Lisa Robinson at lrobinson@ARAusa.com or 404.990.4900, or Amy Morris at amorris@arausa.com or 404.990.4902; locally, Kevin McKenna at kmckenna@arausa.com or Ken Greene at greene@arausa.com, or 303.260.4400.
About ARA: Atlanta-headquartered ARA is the largest privately held, full-service investment advisory firm in the nation that focuses exclusively on the brokerage, financing and capital sourcing of multihousing properties including conventional, affordable, distressed assets, notes sales, seniors, student & manufactured housing and multihousing land. ARA is comprised of the country’s top investment professionals who leverage a unique and fully integrated cooperative business platform of shared information, relationships and technology driven solutions. ARA’s unified enterprise approach ensures that clients are delivered the broadest asset exposure, effective matching of buyers and sellers, and the shortest transaction timeframes in the industry. The combination of resources, unparalleled market expertise and nationwide presence in the multihousing marketplace resulted in an annual production volume of $9.5 billion in real estate transactions in 2012. For detailed information on ARA’s extensive multihousing investment services, visit www.arausa.com.
About Hamilton Zanze & Co: Hamilton Zanze & Co. is a real estate investment company specializing in the acquisition and asset management of apartment communities. Independently, the principals of Hamilton Zanze & Co. started their careers in 1981 and built them on the evaluation, financing, oversight, and brokerage of a wide array of investment property types. In terms of making investments, however, the choice has always been multi-unit housing. Since 2001, Hamilton Zanze & Co. has specialized solely in the pursuit, acquisition, and hands-on management of apartment communities in the Pacific, Mountain, and Southwestern regions of the United States. For more information, www.hamiltonzanze.com.