The San Francisco-based real estate company, which owns several apartment projects in Colorado Springs and northern Colorado, paid a record unit price to acquire the 200-unit Enchanted Springs on the east side of the city.
The purchase is another sign of strong investor interest in the Colorado Springs apartment market, where record high rents and low vacancy rates have attracted several buyers from other cities 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 the Southern Carefree Circle, El Paso County land records show.
According to land documents, the company acquired the complex from the developer of the ESH Development project in Tucson, Arizona. The enchanted springs opened in 2020.
While the $ 65 million price tag is not a record, according to a Gazette study, the unit price of a $ 325,000 Colorado Springs complex with 50 or more units exceeded the previous high of $ 299,835 set this year.
The November sale of the 33-unit Blue Dot Place in downtown Colorado Springs remains the highest local unit price at $ 393,393.
Official Hamilton Zanze could not be reached for comment on Tuesday.
In a press release, David Nelson, the company’s chief operating officer, said Hamilton Zanze liked the facilities of Enchanted Springs, its proximity to regional employers, and its location in an area known for outdoor recreation.
Enchanted Springs is the latest acquisition by Hamilton Zanze in Colorado Springs, which has bought and sold several local projects over the years.
In Springs, Hamilton Zanze also currently owns 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 the company when it acquired Bella Springs in 2018. …
Hamilton Zanze owns 13 apartment projects in Denver and two in Fort Collins, as shown on his website. The company has projects in 14 more states and Washington, according to the company’s 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 Colliers Multifamily Advisory Group, a Denver-based brokerage firm.
He and Craig Stack, also senior vice president of Colliers and junior broker Keegan Hofer, represented developer Enchanted Springs on real estate sales.
“The Front Ridge has been highly desirable for investors, but Colorado Springs has always been desirable in the aftermath of the recession,” Morkes said.
Colorado Springs has seen steady population growth over the past decade, and strong demand for apartments has helped push rents to record highs in recent years.
Average apartment rents rose to a new high of nearly $ 1,430 per month in the second quarter, according to a recent report from the University of Denver, while the local vacancy rate was only 4.4%.
“The fundamentals of the apartment market are great, so rents are going up and there is migration,” Morkes said of Springs. “This is because the city is a fantastic place to live. The cost of living is reasonable. It has excellent business dynamics and a diverse business atmosphere … The economy is very diversified.
“This is what attracts residents and businesses,” he said, “and this is what you need for good apartment market fundamentals.”