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 Rustic Hills Park Apartments in Colorado Springs, CO.
The property was under the control of a court-appointed receiver at the time of sale. ARA Colorado Senior Vice President, Ken Greene, and Senior Associate, Kevin McKenna, represented the receiver, California-based Trigild, in the disposition.
The property was purchased by Connexion Asset Group, a Lakewood, Colorado-based real estate investment and property management firm who purchased the property for $4,200,000, representing a price per unit of $17,279 and a price per square foot of $17.37.
With the all-in costs of building a garden-style community in Colorado Springs reaching $130,000 per unit and above, Rustic Hills Park represented a significant value-add buy when compared to replacement costs. The installation of a new management team and curing of deferred maintenance should push occupancy levels back to market.
“This was a unique opportunity to purchase one of the last remaining distressed apartment communities in this economic cycle. The fact that this was a court-appointed receivership sale allowed the borrower to avoid foreclosure while the buyer was able to purchase the property at an attractive price per unit. However, the property has substantive deferred maintenance and vacancy issues that will need to be addressed. The buyer plans to reposition the property by curing the outstanding deferred maintenance items, rebranding the asset, adding amenities, and stabilizing the occupancy back to market levels,” said Kevin McKenna, senior associate with ARA Colorado.
Constructed in 1968-1972, Rustic Hills Park Apartments is centrally located just down the street from the one-million square foot Citadel Mall, and the Academy Boulevard retail corridor. The property offers numerous shopping and employment options for its residents.
Additionally, with an average unit size of over 900 square feet, Rustic Hills Park offers larger floor plans than the majority of its competition. The property also has a large number of three-bedroom units which are limited in this submarket.
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 678.553.9360, or Amy Holland at aholland@arausa.com or 678.553.9366; locally, Ken Greene at greene@ARAusa.com, or Kevin McKenna at kmckenna@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 has resulted in average annual production volume of $5.5 billion in real estate transactions since 2005. For detailed information on ARA’s extensive multihousing investment services, visit www.ARAusa.com