Sale of apartments largest in Springs history
A California-based real estate firm announced it has completed the $54 million purchase of a 322-unit multi-family development in the Briargate area of Colorado Springs.
Privately held Passco Companies LLC broke the news in a release that its acquisition of Vue21 (formerly known as Alexan at Briargate), located at 4610 Nautilus Peak View, had been finalized.
“We were fortunate to be able to close this property in 45 days,” said Gary Goodman, senior vice president of acquisitions, in the release. “Vue21 is particularly well located within the Powers Boulevard Corridor, the fast growing part of Colorado Springs, which itself is one of the fastest growing cities in the U.S.”
The sale broke the record for both the largest overall price for a multifamily development as well as the record for price-per-unit cost, said ARA Real Estate Investment Services Vice President Kevin McKenna in an interview with the Business Journal. ARA brokered the deal.
According to the release, Passco plans to upgrade the units to create a modern and luxurious community that will raise the status of the property, attract higher-paying tenants and “maximize the potential of this investment.”
Built in 2007, the complex is situated on 11 acres located within the Cordera master-planned community. Units are available in a variety of floor plans, some with views of the Front Range. The transaction brings Passco’s portfolio up to a total of 33 properties with over 10,000 units across 14 U.S. states, according to the release.
Springs homes selling at fastest rate in years
If someone puts a home on the market today, chances are good it’ll sell within two months.
As of June 30, single-family homes spent an average of 62 days on the market, the lowest number since June 2006, when the Pikes Peak Association of Realtors started keeping records.
The total number of active listings is extremely low at 3,450, said Fred Crowley, associate director of the Southern Colorado Economic Forum. He compared that number with around 6,000 active listings in June 2010.
“The available homes for sale has decreased 40 percent over three years ago,” Crowley said. “These numbers are just mind-boggling.”
A total of 1,114 homes sold in May, an increase of 20.4 percent over the 925 homes sold in May 2012. The momentum continued in June as 1,104 homes sold, compared with 846 in June 2012, an increase of 30.5 percent, said Joe Clement of RE/MAX Properties.
From January through May of 2012, 3,420 homes sold, compared with 4,233 this year, an increase of 23.8 percent, according to figures from the PPAR. Monthly inventory levels are at the lowest point since August 2005, which means one thing to Realtors.
“It’s a healthy market,” said Eric Estrada, director of business development for ERA Shields Real Estate. “And it seems to be getting healthier.”
According to figures provided by Estrada, 20 ERA Shields homes in the $400,000-to-$424,999 range sold at an average of 55 days on the market. Homes in the $250,000-to-$274,999 range sold at a quick clip of 65 days average on the market.
In the city’s northeast sector, 93 homes were on the market only 34 days on average before being sold, said Harry Salzman of Salzman Real Estate Services. In Old Colorado City, 22 homes, with a median price of $160,000, sold after an average of 36 days on the market, Salzman added.
In the northwest area, 29 homes were on the market for an average of 43 days before selling. Those homes had a median price of $319,680, Salzman said. In the Powers Boulevard area, 112 homes sold with a median price of $221,448, also on the market for an average of 43 days.
“It’s a reflection of what’s going on in the economy,” said Crowley. “The economy is consistently showing signs of improvement.”