A San Francisco-based real estate company that owns several apartment projects in Colorado Springs and northern Colorado paid a record unit price to acquire the 200-unit Enchanted Springs complex in the eastern part of the city.
The purchase is another sign of strong investor interest in the Colorado Springs apartment market, where record rents and low vacancy rates have attracted many out-of-town buyers in recent years.
Hamilton Zanze, a 20-year-old investment firm, paid $ 65 million this month to buy Enchanted Springs, northeast of Tutt Boulevard and South Carefree Circle, according to El Paso County land records .
The company acquired the complex from ESH Development of Tucson, Ariz., The developer of the project, according to land records. Enchanted Springs opened in 2020.
While the $ 65 million price tag isn’t a record, the $ 325,000 unit price for a Colorado Springs resort of 50 or more units broke the previous record of $ 299,835 set this year, according to a study by the Gazette.
The November sale of the 33-unit Blue Dot Place in downtown Colorado Springs remains the highest local unit price at $ 393,393.
A Hamilton Zanze official could not be reached for comment on Tuesday.
In a press release, David Nelson, the company’s director of transactions, said Hamilton Zanze liked the amenities of Enchanted Springs, its proximity to regional employers and its location in a community known for outdoor recreation.
Enchanted Springs is Colorado Springs’ latest acquisition for Hamilton Zanze, who has bought and sold several local projects over the years.
In Springs, Hamilton Zanze also owns the Resort at University Park Apartment Homes, Broadmoor Ridge Apartment Homes, Mountain View Apartment Homes, The Knolls at Sweetgrass Apartment Homes, and Bella Springs Apartments, according to a company statement on the acquisition of Bella Springs in 2018..
Hamilton Zanze has 13 apartment projects in Denver and two in Fort Collins, his website says. The company also has projects in 14 other states and Washington, DC, according to its website.
The company’s interest in Colorado Springs is a testament to the city’s attractiveness as a place to live and do business, said Bill Morkes, senior vice president of multi-family investments at brokerage Colliers Multifamily Advisory Group in Denver.
He and Craig Stack, also senior vice president of Colliers, and associate broker Keegan Hofer represented the Enchanted Springs developer in the sale of the property.
“The Front Range has been quite desirable for investors, but Colorado Springs has always been desirable since the recession,” Morkes said.
Colorado Springs has experienced steady population growth over the past decade, while strong demand for apartment living has helped propel rents to record highs in recent years.
In the second quarter, average apartment rents hit another high of nearly $ 1,430 per month, while the local vacancy rate was just 4.4%, according to a recent report from the University of Denver.
“The fundamentals of the apartment market are great so rents are going up and there is internal migration,” Morkes said of the Springs. “It’s because the city is a great place to live. The cost of living is reasonable. There is a great business dynamic and a diversified business atmosphere … The economy is very diversified.
“This is what attracts residents and businesses,” he said, “and so this is what you need for good apartment market fundamentals.”