Another Colorado Springs apartment complex has been sold.
Shefflin Investments LLC, a Montecito, Calif.,-based real estate investment company, recently paid $5.9 million for the 168-unit, Hill Park Apartments at 360 N. Murray Blvd. on the Springs’ east side. The seller, Hill Park Associates of Menlo Park, Calif., was represented by Kevin McKenna, Ken Greene and Saul Levy of the Denver office of national real estate brokerage Apartment Realty Advisors.
The complex, built in 1972, is a short drive from Academy Boulevard and is near the Platte Avenue corridor. The price per unit, $35,119, was far short of a record. Yet, it’s another sign that the multi-family market is strong and that investors are looking for good buys on apartments.
“Hill Park presented one of the best value-add opportunities for this market in recent years,” Greene said in a news release. “The property was acquired for a reasonable price and the buyer has budgeted for substantial renovations. Several properties in this neighborhood have seen radical transformations and more investors are beginning to take notice. Hill Park is perfectly positioned for a similar upgrade, but also has a distinct advantage over the competition with some of the largest floor plans in this submarket and one of the few properties with a strong concentration of three-bedroom units.”
Said Levy: “We saw a lot of interest in the property, and offers were competitive. I think investors are realizing that the number of true value-add properties are dwindling. Over the past few years, many older vintage properties have traded and already undergone renovation. As a result, few opportunities are left. We are seeing a lot of urgency from value-add focused investors.”
Colorado Springs-area apartment rents averaged $822.14 a month in the first quarter of 2014, up $34.40 from the same period a year earlier, according to the Colorado Division of Housing. Year-over-year rents have increased for 17 consecutive quarters.