Hamilton Zanze Closes Record-Breaking $111M Colorado Buy
The firm will execute a capital improvements plan at Springs at Foothill Farm that will include building, amenity and green upgrades.
Hamilton Zanze, a San Francisco-based real estate firm that owns and operates apartment communities across the United States, has acquired the 264-unit Springs at Foothills Farm from Continental Properties Co., Inc. for $110.9 million, setting a record for the largest transaction in Colorado Springs, Colo., history.
The seller and price were announced by Berkadia Institutional Solutions, which arranged the sale on behalf of the Wisconsin-based seller and secured $58.1 million in permanent acquisition financing. Senior directors Nick Steele and John Laratta and directors Nate Moyer and Tyler King of Berkadia Denver completed the sale. Managing Director Clay Akiwenzie of Berkadia Incline Village in Nevada secured the 10-year loan that was financed through Freddie Mac.
Despite the turbulent market conditions, Steele said in a prepared statement the team was able to procure more than 20 offers for the high-quality, well-located multifamily asset.
Built in 2021, Springs at Foothills Farm is located at 1203 Affirmed View and has 12 two- and three-floor residential buildings. The garden-style, 276,276-square-foot property features studio, one-, two- and three-bedroom floorplans with an average of 1,047 square feet. The apartments have stainless steel appliances, granite countertops, wood-style flooring, in-unit washers and dryers, walk-in closets, private patios or balconies, and attached and detached garage options. Community amenities include a swimming pool, a fitness center, an outdoor barbeque area, on-site car maintenance center, a pet playground and a park.
Located off Interstate 25, residents have convenient access to shops and restaurants near InterQuest Parkway and are near leading employers in the region including Ent Credit Union, Lockheed Martin, United Health Group, Progressive Insurance Co., Oracle, Hewlett Packard, T. Rowe Price Group and USAA. It is also close to two of Colorado Springs’ major employment drivers, The U.S. Air Force Academy and Fort Carson.
Hamilton Zanze will execute a capital improvements plan that will include building, amenity and green upgrades. Management has been transitioned to Hamilton Zanze affiliate Mission Rock Residential, a Denver-based company that now manages 166 multifamily properties and more than 30,000 residential units across the U.S.
Springs at Foothills Farm is the firm’s seventh multifamily property in the Colorado Springs metro area. Hamilton Zanze, which currently owns and operates 131 properties and 22,035 units in 17 states, purchased Enchanted Springs, a 200-unit community in Colorado Springs, from ESH Development for $65 million in August 2021. The price tag set a record for the city at that time. Other Colorado Springs area purchases include the January 2018 acquisition of Bella Springs, a 364-unit apartment community, from the Praedium Group.
More recently, Hamilton Zanze expanded its portfolio in the Baltimore metro with the acquisition in July of Residences at Waterstone, a 255-unit community in Pikesville, Md. The company partnered with DCA Partners on the deal. The seller and price were not disclosed.
The company has also made some recent dispositions. In August, Hamilton Zanze sold Alicante Apartments, a 232-unit property in Las Vegas, to Sares Regis Group for $86.8 million. The firm had owned the property, built in 2001, since February 2017, when it paid $35.5 million for the asset. Several months earlier, Hamilton Zanze sold Copper Mill Apartments, a 192-unit community in Richmond, Va., to NorthRock Cos. for $50.3 million, according to Henrico County records. Hamilton Zanze had acquired the property in 2018 from JRK Property Holdings for $33 million, according to Yardi Matrix data.