Trion Properties and its equity partner, investment manager PCCP, have acquired two multifamily communities in Colorado Springs, Colorado, for $80 million.
The communities include the 200-unit Quail Cove in the Cheyenne Hills neighborhood and the 206-unit Highland Park in the rapidly growing Northeast Colorado Springs submarket.
“Colorado Springs was the third best housing market for multifamily rental investments in 2020 and recently ranked fourth [by U.S. News] as the best place to live in the United States,” said Max Sharkansky, managing partner at West Hollywood, California-based Trion Properties, a private equity real estate firm specializing in multifamily value-add. “Colorado’s strong military presence and booming aerospace and high-tech manufacturing industries are just a few reasons why the region has seen exponential growth and an influx of talent over the past few years.”
Managing partner Mitch Paskover added that, despite the COVID-19 pandemic, Colorado Springs experienced a significant rent increase due to the area’s desirability and relatively low cost of living.
Quail Cove was built in 1983 and had approximately $5 million spent on capital expenditures within the past five years, including a clubhouse upgrade as well as new roofs and landscaping. It includes a mix of one- and two-bedroom units with washer and dryer hookups, wood-burning fireplaces, central heating and air, walk-in closets, and private balconies and patios.
“Quail Cove is a tremendous blank-canvas value-add opportunity for our team to implement our proven strategy to modernize and reposition the interiors,” said director of acquisitions David Moghavem.
Highland Park also was well maintained by the previous owner, with nearly $2 million spent on improvements, including new landscaping, roofs, and paint, over the past five years. Amenities include courtyards, a dog park, a pool, a sauna, and picnic areas.
This brings Trion’s multifamily count to nearly 700 units in Colorado, with its first acquisition, The View Apartments in the Northglenn submarket of Denver, occurring seven months ago.
Trion acquired both properties from one seller who had legacy ownership. Berkadia’s Winston Black and Frank Farrell of FarrellRes represented both parties in the transaction. Continental Partners arranged the financing from Freddie Mac through Andrew Kwok from Capital One.