Oak Coast Properties has acquired the 200-unit Cottonwood Terrace in Colorado Springs, Colo., from Peak Capital for $37.25 million. The garden-style multifamily community features 20 buildings with one- and two-bedroom options on an 8.27-acre site.
As part of a value-add investment strategy, Oak Coast Properties is planning a $1.5 million renovation aimed at improving the marketability of the units among the region’s renters. The acquisition also reinforces the Southern California-based firm’s ongoing commitment to rental housing opportunities in key metro areas of Colorado, where demand continues to outpace supply. With the acquisition, Oak Coast Properties also has expanded its portfolio to over 5,100 units under management and over $1 billion in valuation.
“Our portfolio continues to perform and beat expectations, even with COVID-19 as a backdrop,” said Phil Nahas, managing partner. “Thus, we are comfortable continuing to acquire quality multifamily properties like Cottonwood Terrace.”
Originally built in 1983, floor plans feature large open kitchens, balconies or patios, large closets, as well as wood-burning fireplaces and views of Pike’s Peak in some units. While 52% of the rental units have undergone upgrades, the firm is planning enhancements to appliances, countertops, cabinets, lighting, flooring, and in-unit washers and dryers for the remaining units, which are still in their original condition.
The community includes a swimming pool, grilling stations, a brand-new fitness center, and a state-of-the-art laundry facility, but the firm says the opportunity exists for additional upgrades to the suite of on-site amenities.
“In recent years, Colorado Springs has consistently ranked among the top cities drawing large droves of millennials,” said Nahas. “As a key cohort in the apartment living sector, these individuals are seeking quality housing options. While a highly desirable community already, Cottonwood Terrace will be even more attractive to these renters when our renovation efforts are complete.”
JLL Capital Markets worked on behalf of the seller to complete the sale as well on behalf of Oak Coast Properties to secure a $28.5 million 12-year, fixed-rate loan through Freddie Mac. The JLL Capital Markets team representing the seller was led by managing director Jordan Robbins and directors Mack Nelson and Chris White. Financing is led by senior managing director Charles Halladay, senior director Brock Yaffe, and director Rick Salinas.
“Colorado Springs continues to be sought after by a growing amount of capital,” added Nelson. “The sales process was competitive, resulting in strong pricing and excellent execution by Oak Coast, even during the global pandemic.”
