An Ohio real estate company has paid a record $77.6 million for a Colorado Springs apartment complex as out-of-town buyers continue to snap up properties in the Pikes Peak region’s red-hot multifamily market.
White Oak Partners of suburban Columbus last week purchased the sprawling 332-unit Vue21 complex east of Powers and Union boulevards on the Springs’ northeast side, El Paso County land records show.
The $77.6 million record purchase price beat a $73.3 million sale of a northside property in November 2016, according to Gazette archives. The Vue21 deal also represented a record per-unit price of $233,735; the previous record of $229,000 was set in August 2017 for a northeast complex.
Vue21’s former owner, Passco Companies of Irvine, Calif., had purchased the complex for $54 million in December 2013.
Vue21’s purchase by White Oak shows investors remain bullish on Colorado Springs and its apartment market, said Kevin McKenna, executive managing director in the Denver office of national brokerage ARA Newmark. McKenna and ARA Newmark director Saul Levy represented Passco in Vue21’s sale.
"Colorado Springs is a market that has a lot of legs left, a lot of positive things going on," McKenna said.
At the same time, some large metro areas lack apartment properties for sale and buyers are turning to smaller markets such as Colorado Springs, he said.
Vue21 opened in 2009 on the Springs’ fast-growing northeast side, which is a hub for residential and commercial development.
The apartment complex is near Memorial Hospital North, where UCHealth is adding a four-story tower as part of a $128 million expansion. On that same site, Children’s Hospital Colorado is building a 294,000-square-foot, $166 million hospital.
A few miles to the south, St. Francis Medical Center is in the midst of a $102 million, 168,000-square-foot expansion.
"Job growth has been led by health care," McKenna said. Vue21 is "literally within walking distance" of a major medical hub that will see more office buildings and other spinoff development to serve the hospitals, he said.
The northeast side also is home to SuperTarget, Lowe’s Home Improvement Warehouse, King Soopers and other retailers.
In a separate deal last week, apartment giant Griffis/Blessing of Colorado Springs sold the 200-unit Willows at Printers Park, southeast of Pikes Peak Avenue and Printers Parkway in central Colorado Springs, for $41 million. Griffis/Blessing had purchased the property for $18.7 million in 2007, land records show.
Griffis/Blessing was represented in the sale by David Potarf, Dan Woodward, Matthew Barnett and Jake Young, who specialize in multi-family properties for CBRE, a national real estate company with Colorado Springs and Denver offices.
Security Properties Inc. of Seattle, which purchased the Willows at Printer Park, plans to upgrade the property’s clubhouse and expand its amenities, according to CBRE.
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