A Fort Collins group has paid $57.8 million for the Vistas at Jackson Creek apartment complex in northern El Paso County, another sign that skyrocketing rents and a strong multifamily-housing market are attracting out-of-town investors in the Pikes Peak region.
Vistas at Jackson Creek LLC, managed by Kevin Hearne of Hearne Construction of Fort Collins, bought the 267-unit complex last month from Tim Phelan, owner of Colorado Springs-based CSI Construction. The Vistas, northeast of Interstate 25 and Baptist Road in Monument, was built in two phases in 2014 and 2016.
The sale price of about $216,000 per unit was short of the area's record high, yet demonstrates that buyers are placing a hefty value on multifamily properties in the Colorado Springs area.
Average rents in the area have hit record highs in recent years as demand for apartments - driven by young people and empty nesters - remains strong. Rents in the third quarter of 2017 averaged more than $1,130 in the Springs area.
Rising rents appeal to buyers and investors, some of whom also have found local apartments attractive when compared with pricier properties in Denver, Fort Collins and other areas of northern Colorado.
The Vistas location also likely would appeal to area residents who work in Colorado Springs, while it also might draw current Denver-area residents who are looking for affordable rents and are willing to commute to jobs farther north.
"Vistas at Jackson Creek is positioned to benefit from the continued strength of the Colorado Springs market, as well as rapidly growing suburban Denver communities to the north," said Nick Steele, a senior associate at brokerage Marcus & Millichap who represented the buyer. "The asset should prove to be a well-considered investment for our clients for years to come."
The Vistas complex features one-, two- and three-bedroom apartments in a dozen three-story buildings. Amenities at the Vistas include a clubhouse, playground, dog wash station, pool/hot tub, detached garages and a coffee bar.