Colorado Springs, Colo.—George Smith Partners arranged $41 million in financing for the acquisition of The Vineyards, located at 4350 Mira Linda Point in Colorado Springs, Colo., on behalf of a private real estate investment and development company. The 300-unit, Class A apartment community comprises 22 buildings, offering two-bedroom, two-bath apartments with stainless steel appliances, granite-like countertops and contemporary hardware. Residents also have the option of selecting outdoor, covered, or garage parking spaces and have the ability to rent freestanding storage units if needed. The buyer plans to renovate all units and upgrade the landscaping and on-site amenities including the clubhouse, fitness center, leasing offices and business center.
Financing was arranged by GSP principal Johnathan Lee and provided by Walker & Dunlop, comprising 75 percent of the acquisition cost. The non-recourse loan closed at 4.3 percent with a 12-year fixed rate at nine years interest only.
“After reviewing all the materials, we immediately recognized the opportunity in lending on this property,” said Jeff Burns of Walker & Dunlop. “This is a meticulously maintained core-plus asset that is positioned as one of the most high-quality rental properties in the area. With only 600 new units under construction in Colorado Springs, The Vineyards is poised to continue to compete as a top performer in the market.”
The Vineyards is in close proximity to several top employers including St. Francis Medical Center, the USAA Financial Center and Lockheed Martin. The community is also surrounded by a variety of shopping and recreation attractions including shopping malls, the zoo and the U.S. Olympic training center.
“The Vineyards community is located in one of the most desirable and strongest performing submarkets in Colorado Springs,” said Lee. “Net effective rents in the market grew 7.7 percent year-over-year from Q1 of 2015 to Q1 of 2016, further demonstrating the strength in this acquisition.”
Bill Morkes and Craig Stack of Colliers International represented both the buyer and the seller in the transaction.
Image courtesy of George Smith Partners