Apartment sale a back-channel deal (7682)

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A 374-unit apartment complex located at 3802 Half Turn Road, just south of Austin Bluffs Drive and Academy Boulevard, sold in August for $9.5 million. The Westree Apartments had not been listed on the real estate market, but the owners did not have the funds to keep things going and maintain the complex, said Gary Winegar, chief executive officer of Griffis/Blessing Inc.

Winegar said it was the right time for the purchase, which was a joint venture between GB Value Partners and the private Denver investor who introduced GB Value (to?) Westree Apartments.

GB Value is Griffis/Blessing’s private equity real estate fund – a limited liability company that Winegar said includes “high-net worth individuals in Colorado Springs and elsewhere who have committed dollars to us to find real estate as a component of their investment portfolio.

“We bought this property for $25,000, which is a very good price per unit. This type of complex should be selling for $40,000 per unit.” The partners assumed an unfavorable loan that Winegar said they will pay and replace in about a year with a “more favorable debt piece.”

Griffis/Blessing plans to create the apartment complex’s worth through renovations and additions. The company will sink $1.2 million into the building for new paint, fencing, a roof, interior enhancements and updated appliances, Winegar said. Plans also include an upgrade to the two swimming pools and the addition of a fitness center and playground.

The apartment complex is about 80 percent occupied, Winegar said. “We look for properties just like these to create value,” he said.

The property name will change from Westree Apartments to Summer Grove Apartments.

- Marylou.Doehrman@csbj.com