A Florida company that acquires and manages apartment communities around the country is continuing its Colorado Springs buying spree, paying $51.1 million last week for a 310-unit complex on North Nevada Avenue.
Priderock Capital Partners of West Palm Beach bought the Advenir at the Village Apartments, just north of the University Village Colorado retail complex, El Paso County land records show. The deal is Priderock’s fourth acquisition in Colorado Springs since 2014 and brings its total investment in the local apartment market to nearly $156 million, according to land records.
Priderock officials didn’t return a telephone call seeking comment Wednesday.
But the deal signals continued investor interest in Colorado Springs because of its surging economy, said Kevin McKenna, executive managing director in the Denver office of national brokerage ARA Newmark. McKenna and ARA Newmark director Saul Levy represented Advenir Living of Miami in its sale of the property to Priderock.
“What’s piquing their interest really is the job growth story in Colorado Springs,” McKenna said. “Depending on which stats you look at ... we’re at least 3, if not above 4 percent job growth. The economy is really getting more diversified and creates more demand for apartments. So I think there’s a great story to tell about that, and the apartment market continues to be strong.”
Also, newly constructed apartments in Colorado Springs are filling up, a sign that the demand continues for existing properties — even older ones, McKenna said. The Advenir at the Village was built in the mid- to late 1960s, land records show, and Priderock’s $51.1 million purchase set a record per unit and per square foot price for Springs-area apartments constructed before 1970, he said.
The Apartments.com website shows monthly rents at Advenir currently range from about $800 for a one-bedroom unit to as much as $1,348 for three bedrooms.
Despite its age, the Advenir at the Village has a superior location, McKenna said. University Village, the nearby regional shopping center, has dozens of stores and restaurants. The property also is just south of the UCHealth Grandview Hospital, west of the fast-growing University of Colorado at Colorado Springs and backs up to Monument Creek and the Pikes Peak Greenway Trail.
“It’s literally surrounded by everything you’d want,” McKenna said.
Priderock’s website says the company currently owns and manages more than 12,000 units in 16 states. In Colorado Springs, Priderock also owns the 240-unit Preserve at Hidden Creek Apartments, the 192-unit Ironwood at Palmer Park Apartments and the 220-unit Union Heights Apartments that it bought just three months ago.
The local apartment market has been strong for the last several years, another incentive for buyers. In the second quarter, monthly rents averaged a record high of nearly $1,160, while the vacancy rate was 6.3 percent, according to the Colorado Division of Housing and the Apartment Association of Southern Colorado.