As a result of lower vacancies and stable rents, some cash-rich investors are beginning to take a closer look at the Colorado Springs market — but most are doing plenty of due diligence before signing contracts to purchase.
Apartment sales have slowed to a crawl so far this year.
The 200-unit Broadmoor Ridge community at 3893 Westmeadow Drive, built during 1973, was purchased during the second quarter for $10.4 million by the Hamilton Zanze Co.
“That price reflects extensive renovations by the seller, AIMCO,” said multifamily broker Doug Carter of Sperry Van Ness.
He said only one conventional apartment complex and two or three tax credit or “affordable housing” properties were purchased during first quarter.
“It was a 30-unit class C building at 425 E. Willamette that sold for $950,000 and was handled by the bank,” he said.
During June, Carter also sold the 40-unit Americana Apartments at 2625 E. Willamette Ave. for $800,000 for Pueblo Bank and Trust.
“With so few deals, I think you’re going to see some brokers leave the industry during the next two or three years,” he said. “We’re watching foreclosures begin to ripple from the residential sector into commercial real estate, including bank-owned apartment buildings. The younger brokers don’t have anything to fall back on, and brokers in their 50s and 60s may not want to wait eight or 10 years for the next economic boom. But if you’re willing — and able — to hang in there, I think there’ll be plenty of opportunity.”