Trion Properties and its equity partner, PCCP LLC, have acquired a pair of well-maintained value-add properties in Colorado Springs, Colo.
The partners acquired the multifamily portfolio that included Quail Cove and Highland Park for $80 million. David Moghavem, Trion’s director of acquisitions, told Multi-Housing News that the seller was Meta Real Estate Partners, who had legacy ownership over both properties.
Berkadia’s Winston Black and Frank Farrell from Farrell Real Estate represented both parties in the transaction while Continental Partners arranged Freddie Mac financing for both acquisitions through Andrew Kwok from Capital One.
The two communities total 406 units and represented an opportunity for Trion to acquire well-maintained assets with strong-value add potential in a rapidly growing market, Max Sharkansky, managing partner at Trion, said in prepared remarks.
Located at 3308 Quail Lake Road in the Cheyenne Hills neighborhood of Colorado Springs, the 200-unit Quail Cove offers one- and two-bedroom floorplans. Built in 1983, the community received approximately $5 million in capital expenditures in the last five years that covered new roofs, new landscaping, a clubhouse upgrade and other renovations.
More than 10 miles north of Quail Cove at 4815 Garden Ranch Drive, Highland Park offers 206 units also in one- and two-bedroom floorplans. Similarly well-maintained, the community had nearly $2 million in improvements in the last five years that resulted in new landscaping, roofs, paint and other upgrades.
GROWING RENTS IN COLORADO SPRINGS
Farhan Mahmood, managing director at Trion, said in prepared remarks that the company was attracted to the Colorado Springs market due to its predominantly military-heavy presence that has also made way for technology startups, insurance companies and an area hospital.
Mahmood also noted in his prepared statement that the area has also attracted Amazon, who is working on a 3.7 million-square-foot distribution and sorting center, and the Space Force, who will build at multiple bases in Colorado Springs.
Rents in Colorado Springs also saw a significant increase in 2020 despite the pandemic, Mitch Paskover, managing partner at Trion, said in prepared remarks. In his prepared statement, Paskover attributed the rent growth to the area’s desirability, high-quality lifestyle and relatively low cost of living.
According to Paskover, the acquisition puts Trion’s portfolio of multifamily units in Colorado at nearly 700. The company entered the Denver area market in September by acquiring a 288-unit property in Northglenn, Colo., with a joint venture partner for $38 million.