'Widespread' Softness Defines Market

from Colorado Real Estate Journal | by Jennifer Hayes | April 30, 2014

Widespread softness marked the Colorado Springs apartment market in the first quarter of 2014.
Apartment Insights recently released its Statistics/Trends Summary for the first three months of the year in which it noted vacancy rose, absorption dropped and rents saw a slight increase.

“Vacancy increased in most categories, including affordable properties, absorption was negative and concessions increased, more than offsetting the increase in rents,” explained Doug Carter of Sperry Van Ness/Doug Carter LLC, who co-authored the report with Cary Bruteig of Apartment Appraisers & Consultants. “Although long-term trends remain positive for the area, the recovery continues at an uneven pace.”

Read the rest of the story at the Colorado Real Estate Journal by clicking here.

CSBJ: Denver Investment Company Buys COSprings Apartment Buildings

Published by the Colorado Springs Business Journal | November 8 2012 | Written by Amanda Miller

Denver-based BMC Investments recently bought two Colorado Springs apartment properties.

BMC paid $4.2 million for 148-unit Timberlane Apartments at 3985 E. Bijou St. and $3.175 million for 95-unit Ashelyn Court at 930 N. Murray Blvd.

Both complexes are about 90 percent occupied, according to a release from FirstBank, which financed the purchases.

BMC plans to invest about $500,000 in enhancing curb appeal at Timberlane and completing some deferred maintenance projects. The company will spend another $250,000 improving Ashelyn Court, which company principals hope will add value to the property and allow them to increase rents.

“Our goal is to complete the renovations quickly, stabilize the assets and refinance in 12 months with a long-term loan from Fannie Mae or Freddie Mac,” managing partner of BMC Matt Joblon said in a statement.

BMC purchased the properties from investors who bought the bank notes and foreclosed on the properties, according to the release

FirstBank financed 70 percent of the total capitalization, including purchase price, renovation and closing costs. The first year’s interest, property taxes and insurance also are capitalized into the three-year loan, which is fixed at 4.5 percent. The first year is interest only and then roles into a 25-year amortization period if BMC has not refinanced by then.

Read more on CSBJ.com: http://csbj.com/2012/11/08/denver-investment-company-buys-springs-apartments/

CSBJ: Apartment Market Returning to "Normal" in 2012

Published by The Colorado Springs Business Journal | October 26 2012 | Written by Amanda Miller

Many older apartment communities are now
being bought and flipped for resale.

Colorado Springs’ apartment sales market seems like it’s hot right now, but the numbers suggest it’s just getting back to “normal” after a sleepy few years.

There have been announcements about big sales, institutional investors and properties selling here and selling there. Vacancy has dropped to 5.8 percent in the third quarter of this year, and rents have climbed 3 percent from 2011 highs to an average $757 a month.

Developers are even building again.

To look at it from the outside in, it seems like the apartment market is on fire. And maybe it will get there, said Doug Carter, an apartment broker with Sperry Van Ness and author of the quarterly Apartment Insights report.

But, so far, 2012 is shaping up to be an average year for apartment sales. There have been 21 sales so far adding up to $130 million. That’s ahead of 2011 year-to-date when there were 16 sales in the first nine months of the year totaling $55 million. Last year ended with 22 total sales.

But through most of the past decade, there has been an average of about two sales a month — 19 to 26 sales a year, Carter said.

In 2008, the last “normal” year for apartment sales in Colorado Springs, there were 18 closings in the first three quarters totaling $155 million. The average sale was $8.6 million for a 120-unit complex. This year the average is $6.1 million for a 120-unit building.

Read the rest of the article on CSBJ.com: http://csbj.com/2012/10/26/apartment-market-returning-to-normal-in-2012/