Denver-based BMC Investments recently bought two Colorado Springs apartment properties.
BMC paid $4.2 million for 148-unit Timberlane Apartments at 3985 E. Bijou St. and $3.175 million for 95-unit Ashelyn Court at 930 N. Murray Blvd.
Both complexes are about 90 percent occupied, according to a release from FirstBank, which financed the purchases.
BMC plans to invest about $500,000 in enhancing curb appeal at Timberlane and completing some deferred maintenance projects. The company will spend another $250,000 improving Ashelyn Court, which company principals hope will add value to the property and allow them to increase rents.
“Our goal is to complete the renovations quickly, stabilize the assets and refinance in 12 months with a long-term loan from Fannie Mae or Freddie Mac,” managing partner of BMC Matt Joblon said in a statement.
BMC purchased the properties from investors who bought the bank notes and foreclosed on the properties, according to the release
FirstBank financed 70 percent of the total capitalization, including purchase price, renovation and closing costs. The first year’s interest, property taxes and insurance also are capitalized into the three-year loan, which is fixed at 4.5 percent. The first year is interest only and then roles into a 25-year amortization period if BMC has not refinanced by then.