Passco Companies Acquire Colorado Springs Community for $54M
- Dec 05, 2013
Colorado Springs, Colo.—Passco Companies LLC has acquired the former Alexan at Briargate, a 332-unit Class A multifamily community located in Colorado Springs, Colo., which was rebranded as Vue21.
“The acquisition of Vue21 is well-aligned with Passco Companies’ ongoing strategy to acquire high-quality, core multifamily assets in secondary markets,” Gary Goodman, Passco Companies’ senior vice president, acquisitions, tells MHN. “The property’s improvements are unparalleled in the market, and the location is widely regarded as the best in the area, making this property an excellent addition to our multifamily portfolio.”
Vue21 is equipped with the high-end amenities including an elaborate clubhouse, a well-appointed fitness center, and even a dog spa. In addition, the property was named for its stunning views of Pikes Peak and the Rocky Mountains, visible from many of the property’s units.
Located within the Cordera master planned community, the property is in the heart of the growth path of Colorado Springs. It’s within the area’s largest concentration of office space, totaling over 10 million square feet and is home to national tenants such as USAA, T-Mobile, Focus on the Family, Oracle and Lockheed Martin.
According to Goodman, by investing in secondary markets, the company is able to provide investors higher cash yields than those available in the primary or so called “gateway” cities.
“Vue21 is situated in one of the best neighborhoods in Colorado Springs—a factor that is extremely attractive from an investment perspective,” he says. “The residents, many of whom are employed by the numerous medical facilities in the immediate area of the property, enjoy access to the Route 21 retail corridor and two nearby regional malls.”
Although the property is already well appointed, with excellent common area amenities and high-end unit features, Passco Companies plans to implement some minor upgrades.
“Specifically, we plan to update the flooring in the ground floor units, installing vinyl wood plank flooring. We have found that residents in high-income markets are willing to pay a premium for units with this upgraded wood flooring,” Goodman says. “It’s important to note, however, that we will only implement premium flooring changes on the ground floor. By doing this, we will be able to ensure that residents are not inconvenienced by noise that could arise if wood flooring were added on second or third floor units.”
Vue21 brings Passco’s multifamily portfolio to 33 properties and more than 10,000 units, located in 14 states throughout the United States.