$72.SM Buy Tops for ’18 In Colorado Springs
Buchanan Street Partners closed 2018 on a high note, completing one of the largest apartment transactions of the year in Colorado.
The Newport Beach-based real estate investment management firm paid $72.5 million for Creekside at Palmer Park, a 328-unit complex five miles east of dowtown Colorado Springs.
The deal went for about $221,000 per unit. By total price, it was the largest sale of the year in that city, according to the buyer.
The 16-building property, built in 2003, totals 325,700 square feet, and is on nearly 20 acres of land. It was about 95% leased at the time of sale.
Buchanan Street has bought about 14,000 apartment units since its founding 20 years ago, initially by providing capital to regional operating partners.
More recently, it has begun to buy and operate multifamily deals directly. It’s bought four complexes under this model since mid-2017, all in Utah and Coloradoareas “where we believe there to be excellent job formation and investment value to be realized,” Chief Executive Robert Brunswick told the Business Journal last week.
About a year ago, it paid $60 million for a complex in Lafayette, Colo., just outside Boulder.
Buchanan Street said it intends to hold onto the Creekside property for the long term.
Colorado Springs is an attractive investment market for Buchanan Street, according to Kevin Hampton, multifamily executive vice president for the investment company. “Increases in the region’s economic activity and population continue to favorably impact the demand for multifamily housing.”
Orange County Business Journal – Mark Mueller