Axton, Bascom Sell Colorado Springs Properties for $74M
Renovations recently wrapped at the 50-year-old communities.
An affiliate of The Axton Group and The Bascom Group has sold a pair of Colorado assets for $74.1 million nearly four years after acquiring them. The multifamily communities, which totaled 486 units, were sold to an undisclosed buyer after the owner completed multi-year renovations at the properties.
The partners acquired Park at Penrose, with 374 units, and Park at Palmer, with 112 units in June 2019 for $41.5 million. Seller Yukota Capital Management had owned the asset for about three years prior to the sale. The properties are adjacent to each other and located in the Palmer submarket, the fastest rent growth submarket of Colorado Springs.
Built in 1971 and 1972, Park at Penrose is located at 3802 Half Turn Road. The community was known as Summer Grove at the time of the June 2019 acquisition. Park at Palmer, located at 3903 Half Turn Road, was called Tanglewood. At that time, the partners paid approximately $31 million for the larger property and more than $10 million for the smaller asset.
The sellers noted in prepared comments that they had successfully refinanced the properties in February 2022.
Both properties offer one-, two- and three-bedroom options. Renovated units include new kitchen appliances and cabinets, updated flooring and lighting fixtures and bathroom vanities. Community amenities include a state-of-the-art fitness center, dog park, pool, club house with game rooms and billiards, business centers and grilling and picnic areas.
The assets are located in an area near shopping, dining, outdoor recreation and strong economic opportunities that helped drive organic rent growth during the investment period. Colorado Springs has recently benefited from a steady influx of employers in the aerospace, military, technology, life science, healthcare and banking sectors. Major employers include Amazon and FedEx.
Colorado Springs Airport is a 15-minute drive from the properties, while Interstate 25 is close to both properties, providing residents easy access to many major employment hubs and a one-hour commute to Denver.
Earlier this month, Bascom and Artemis Real Estate Partners acquired Avenida Lockwood, a 230-unit senior housing community in Denver from Avenida Partners, the asset’s developer. Located at 11001 W 15th Place, the property was built in 2019. It’s approximately 7 miles west of downtown Denver. The transaction was Bascom’s 36th multifamily acquisition in Colorado.