Colorado Springs Apartment Complex Sells for Record Pricing
Colliers International Multifamily Advisory Group announced the sale of The Palmer Park Apartments for $26,100,000 ($130,500 per unit and $207 per square foot) – a record price per square foot for multifamily assets built in Colorado Springs before 1990.
January 16, 2020 – Colliers International Multifamily Advisory Group announced the sale of The Palmer Park Apartments for $26,100,000 ($130,500 per unit and $207 per square foot) – a record price per square foot for multifamily assets built in Colorado Springs before 1990.
Palmer Park Apartments is a 200-unit apartment community built in 1949 and located in central Colorado Springs at 1304 E San Miguel Street. Originally constructed as military housing in a unique low-density setting with 20 two-story buildings on just over 9 acres, Palmer Park Apartments has been operated as a market-rate property for years.
The seller, a Los Angeles-based investment and development firm named Roundhouse, was represented in the sale by Bill Morkes and Craig Stack of Colliers International. The buyer was Clear Capital, LLC of Los Angeles and was self-represented.
“We received over ten offers from investment groups head-quartered across the U.S.” said Mr. Morkes. “The Colorado Springs market has been extremely strong over the last ten years and national investors are aggressively competing to win value-add deals. We’re in the process of marketing similar assets in Colorado Springs, including the sister property to Palmer Park called The Centre, and buyer appetite is very comparable.”
“We are excited about the Palmer Park purchase as part of our Colorado acquisition strategy given the strong demand drivers, robust growth, and limited supply of workforce housing,” said Enrique Huerta, Acquisitions Associate with Clear Capital. “This is Clear Capital, LLC’s first acquisition in the Colorado market, and the firm plans to acquire over 2,000 units in the state of Colorado over the next 18 months.”
“It’s a good transaction when both parties walk away satisfied” added Mr. Stack. “The seller successfully executed their business plan and the buyer bought an irreplaceable property below replacement cost with the opportunity to execute a unit renovation program.”