Even with a stew of challenging financial hurdles, investors such as Benedict Canyon Equities are leaping over them to widen their stake in one of Colorado's fastest-growing markets.
The Southern California investment firm dropped $82.2 million to acquire a pair of multifamily properties in Colorado Springs, marking a significant addition to a company portfolio that already includes about half a dozen apartment complexes in the region.
The deal with Denver-based seller Avanti Residential underscores the city's climbing appeal among investors amid a record spike in rents and leasing momentum. It was also significant enough to earn a 2024 CoStar Impact Award for sale/acquisition of the year, as judged by real estate professionals familiar with the market.
"It means continued and greater investment into the residential core of Colorado Springs," CoStar Impact Award judge Christian Lauter, a client services manager for multifamily development firm Greystar, said of the deal. "South Colorado Springs deserves more reinvestment, and this is a great step in the right direction."
Benedict Canyon's acquisition closed despite the volatile debt environment in which higher borrowing costs and stricter lending standards have stifled prospective buyers, making potential sales increasingly difficult to pencil out.
The deal marks Benedict Canyon's widened bet on growth in the Colorado Springs area, located about an hour south of Denver and surrounded by major employers such as Lockheed Martin, United Health Group, Progressive Insurance, Oracle, T. Rowe Price Group and USAA, all of which have fueled the city's multifamily market.
About the Project: The deal for the Bellaire Ranch portfolio included the main 240-unit complex at 4275 Sanders View Drive and the newer Alturas at Bellaire Ranch portion, which has another 60 units at 1130 Bell Tower Heights.
What the Judges Said: "Quality apartment homes are an important aspect of the overall housing supply within Colorado Springs," CoStar Impact Award judge Paul Morrow, a senior analyst for the city of Colorado Springs' community development department, said of the deal. Fellow judge Mike Helwege, the principal of Core Commercial Brokerage Co., added that the deal with Benedict Canyon "likely got done in a challenging environment," a testament to the durability of the Colorado Springs multifamily market.
They Made It Happen: Kevin McKenna, Willy Holliday, Brad Schlafer and Jessica Graham with CBRE’s Colorado multifamily investment properties team represented the seller, Avanti Residential. Ryan Greer, Troy Tegeler and Trevor Breaux with CBRE’s debt and structured finance team in Los Angeles arranged the acquisition financing.
CoStar Market Manager Kathryn Binns contributed to this report.