the multifamily olive real estate group, inc. investor · 2020-03-12 · avg rent for units...

PRICES HAVE REBOUNDED -AND THEN SOME!

THE MULTIFAMILYINVESTOR

2015 Third Quarter Edition

Inside this issueWhy are Apartments Hot? Stock market volatility, turmoil surrounding whether a strong dollar is positive or negative for our economy................................................................................................1Local News The Colorado Springs Business Alliance announced the biggest win for Colorado Springs in the last 20 years................................................................................................1Multifamily StatisticsApartment Rents in Colorado Springs increase while vacancies fall................................................................................................2Multifamily Listings..........................................................................................3-6The Positive Long-Term Picturefor Apartments.............................................................................................6

719.598.3000www.olivereg.com102 N Cascade Avenue, Suite 250Colorado Springs, CO 80903

Olive Real Estate Group The Multifamily Investor

WE HAVE BUYERS,WE NEED SELLERS!

Apartment values are at all-time highs nation-wide. If inter-ested in selling, this is the opportunity. And why are people buying? A strong rental market, the ability to lock in low interest rates and a favorable long-term outlook for apart-ments as an investment vehicle are collectively driving a very powerful market.

OLIVEREAL ESTATEGROUP, INC.


Your Local Colorado Springs Apartment Brokerage Resource

On a regional level, despite the increase in values, Colorado Springs is likely the mostunderappreciated market in the Front Range of Colorado. Denver created 44,000 jobs last year and rents have soared, producing a monumental demand for multifamily that is now unaffordable for a great number of renters. As you move south, Douglas County was touted the fastest growing county in the entire United States of America.

Further south, in Colorado Springs, high investment demand is paying dividends to Sellers. Our market offers better returns to investors, who have

long since been priced out of coastal markets, and certainly a booming Denver. The result: our cost of living is half that of Denver.

Stock market volatility, turmoil surrounding whether a strong dollar is positive or negative for our economy and, finally, fear driven by political instability in other parts of the world, all continue to push investors toward solid, long-term investments. Did we mention fears of inflation? Apartments suit all of the above concerns very well. Ultimately, a roof overhead is a higher priority for most of the population than import/export dynamics.

The Colorado Springs Business Alliance announced the biggest win for Colorado Springs in the last 20 years, landing Nevada Completions, an aerospace company that plans to build an $88 million, 90,000-square-foot hangar near the airport, bringing an estimated 2,100 jobs to the market.

If thinking of selling, or even willing to consider offers without a listing obligation, please contact us. We have qualified investors seeking to purchase properties from $500,000 to $50 million. 719.598.3000

WHY ARE APARTMENTS HOT?

Additionally, Downtown Colorado Springs announced the “Catalyst Campus”, a technology innovation campus in the old Santa Fe Railway Station. The project’s owner, The O’Neil Group, plans to renovate the existing 97,000 square feet and add another 50,000 square feet, generating an estimated 600 jobs with salaries in the $80,000 range.

Local News

“Colorado Springsis likely the most underappreciated market in the Front Range of Colorado.”

1 THE MULTIFAMILY INVESTOR

MULTIFAMILY STATISTICS


Notable El Paso County Apartment Sales 2014 YTD (5 Units +)

Available Properties - We Need Sellers!

Colorado Springs Metro AreaSecond Quarter 2015Source: Colorado Division of Housing and the Apartment Association of Southern Colorado

AVG RENT FOR UNITS CONSTRUCTED:2005-2011: $1,168.762000-2004: $1,027.001990-1999: $932.331980-1989: $793.181970-1979: $662.811960-1969: $685.361959 prior: $601.98

Rents do not include the cost of rental dis-counts and concessions. For the first quarter of 2014, rental discounts and concessions averaged 11.9 percent, up from 7.3 percent for the prior quarter.

CURRENT VACANCY: 6.7%Last Qtr: 7.1% / This Qtr 2013: 5.6% /This Qtr 2012: 6.4%Our market area showed an increase, while six showed a decrease. Buildings with “200 to 349” units had the highest vacancy rate at 8.0%. Build-ings with “9 to 50” units had the lowest vacancy rate of 3.8%. Historically, larger buildings have the highest vacancy rates. Buildings constructed “2005 and newer” had the highest vacancies at 30.7%, although when buildings undergoing lease up are removed this number becomes 8.4%. Those constructed between “1950-1959” had the lowest vacancy rate at 1.3%.


MULTIFAMILY LISTINGS

RENTAL RATESMEDIAN RENT: $793.10Last quarter: $768.70This quarter 2013: $760.07This quarter 2012: $728.02

AVERAGE RENT: $822.14Last quarter: $799.67This quarter 2012: $787.74This quarter 2011: $754.77

RENT / SQUARE FOOT: $1.01Last quarter: $0.99This quarter 2012: $0.97This quarter 2011: $0.93

OLIVE REAL ESTATE GROUP, INC.

During the first quarter of 2014, the average apartment rent in the Colorado Springs metro area rose to an all-time high for the third quarter in a row while the apartment vacancy rate continues to decline.

Apartments Rentsin Colorado Springsincrease whilevacancies fall...

NAME

Antero - Tanager Meadows

Cheyenne Crossing Apts

Fountain Springs

Sienna Place

Cedar Crest & Mtn County Est

Sky at Bear Creek

Kit Carson Apartments

Alvarado Place Apartments

Meadow Point Apartments

Taylor Apartments

Aspen Creek Apts

Legacy Apartments

Shields Mansion

Morning Wood Apartments

Midtown Apartments

Santa Fe Apartments

Fountain Creek Apartments

Chelsea Manor

SALES PRICE

$47,000,000.00

$25,000,000.00

$20,500,000.00

$19,350,000.00

$13,750,000.00

$12,160,000.00

$5,400,000.00

$3,675,000.00

$3,200,000.00

$1,755,000.00

$1,428,000.00

$1,065,000.00

$989,000.00

$850,000.00

$800,000.00

$640,000.00

$325,000.00

$1,060,000.00

UNITS

528

220

228

312

228

148

108

100

70

30

34

20

6

26

18

16

9

12

SALE DATE

5/14/15

4/30/15

5/22/15

2/2/15

6/17/15

1/23/15

4/15/15

5/7/15

6/16/15

5/18/15

5/15/15

2/20/15

1/16/15

5/21/15

4/24/15

AVAILABLE

AVAILABLE

AVAILABLE

ADDRESS

1432 Sandalwood Dr

640 Wycliffe Dr

4235 Fountain Springs Grv

850 E Cheyenne Rd

105 S Academy Blvd (2 Properties)

864 Oxford Ln

568 Marquette Dr

1465 Alvarado Dr

233 E Arvada St (2 Properties)

22-26 W Taylor St

319-321 E Brookside St

1201 N Nevada Ave

1530 N Cascade Ave

2619-2621 E Willamette Ave

217 S Weber St (2 Properties)

207-303 N Santa Fe Avenue, Fountain

411 S Santa Fe Avenue, Fountain

848 E Kiowa St.


SWOPE AVENUE I 14 UNITS I $299,000 Only $21,421 per Unit!311-315 Swope Avenue, Colorado Springs 80909

Seller Representation. 14 Unit furnished rental property conveniently located close to the intersection of Union Blvd and Platte Ave. This central location consists of studio and one bedroom units, thirteen of which are fully furnished. In addition, there is an on-site 2-3 bedroom manager house that could also be rented for additional income.

SOLD

3347 W Bijou I 8 UNITS I $395,0003347 W Bijou, Colorado Springs 80904

Buyer Representation. West side property consisting of eight one bedroom, one bathroom units. Great access to Garden of the Gods Park and Red Rock Open Space. Location is within walking distance of bus line, Safeway, restaurants and much more.

CASA DEL AIR I 9 UNITS I $875,0001524 N Cascade Avenue, Colorado Springs 80907

Seller Representation. Spectacular mansion located in the historic Old North End Neighborhood. Large units all have amazing character, original woodwork, hardwood floors.

VILLAGE AT WESTMEADOW I 220 UNITS I $24,816,4481265 Capistrano Point , Colorado Springs 80906

Buyer Representation. Large 1 & 2 bedroom units with full size washer/dryer, walk-in closets, gas ranges and central air. Location offers quick access to Ft. Carson. Amenities include pool, spa, large club house with 24 hour fitness center & resident business center.

SOLD

SOLD

SOLD

2

3

4

1


Recent Transactions Brokeredby Olive Real Estate Group



SOLD

FONTMORE APARTMENTS I 10 UNITS I $575,000831 Fontmore Road, Colorado Springs 80904

Buyer & Seller Representation. Located near Garden of the Gods and Pleasant Valley with fantastic mountain views. Convenient to two major grocery store chains, restaurants, strip malls, and easily accessible to Highway 24 or Interstate 25. Great location for outdoor activities such as hiking, biking, running, etc. Surrounded by upscale neighborhoods and close to public transportation. The property has a solid mix of one and two bedroom units. An onsite laundry facility and ample off-street parking make the property desirable for tenants. This is two adjacent properties being sold together.

506 & 514 N CASCADE AVENUE I 22 UNITS I Call for details506-514

N Cascade Avenue, Colorado Springs 80903

Buyer & Seller Representation. This historic Victorian style inn property, is comprised of two National Register of Historic Place homes built in the late 1800’s and joined in the early 20th century. They were renovated and opened as a Bed & Breakfast in 1978. The Hearthstone Inn features 25 unique guest rooms, 23 private and 2 shared baths, dining room and full-service restaurant, and a conference center. The choicest of the accommodations have their own porches and working fireplaces. All but two have private baths. Some of the original decoration, including a tile and cherry-wood fireplace, are intact.

LEGACY APARTMENTS I 13 UNITS I $1,065,0001201 N Nevada Avenue, Colorado Springs 80903

Seller Representation. Rare find in Colorado Springs. These brownstone apartments are located in the historic Old North End Neighborhood. The spectacular location is across the street from Colorado College, offering extremely stable occupancy with ample opportunity to rent to students or professionals.

EAST HILLS APARTMENTS I 32 UNITS I $1,690,000738 East Hills , Colorado Springs 80909

Seller Representation. East Hills Apartments is one of very few multi-family properties in El Paso County of its age and size. Most comparable properties are 30 years older than East Hills Apartments. Take advantage of this unique opportunity to invest in a modern property that is expected to have lower expenses than comparable multi-family properties. Solid central location allowing easy access to Downtown, Academy Blvd., Powers, Olympic Training Center and much more.

SOLD

SOLD

SOLD

6

7

8

5








SOLD

RED ROCK MANOR I 18 UNITS I $1,115,000421-425 Fountain Place, Manitou Springs 80829

Seller Representation. Red Rock Manor is a well maintained, updated investment property located in highly desirable Manitou Springs. This quiet location is in close proximity to schools, restaurants, shopping, trails, public transportation and much more. Units feature separate walk up entrances with breathtaking views of Pikes Peak and surrounding mountains.

SHIELDS MANSION I 6 UNITS I $989,0001530 N Cascade Avenue, Colorado Springs 80907

Seller Representation. Historic Mansion located in the historic Old North End Neighborhood. Exceptional “owner’s quarters” has coved plaster ceilings, unbelievable woodwork, accented with a modern kitchen. Well maintained property includes new roof, new siding, individual forced air furnaces for each unit, and much more.

THE BEVERLY I 21 UNITS I $725,00023 N Wahsatch Avenue, Colorado Springs 80903

Seller Representation. Ideal Downtown location is within a short walk of stores, restaurants, coffee shops. With Palmer High School a few blocks away and Shooks Run Park just east of the property, The Beverly has something for everyone.

RAINTREE APARTMENTS I 26 UNITS I $1,600,0002655 Ore Mill Road , Colorado Springs 80904

Seller Representation . Raintree Apartments are conveniently located off of Cimmaron Street and South 26th St, west of I-25. The two story walk-up building was constructed in 1984 and features 2 studios, 11 one bedroom and 13 two bedroom units. The apartments feature AC / heating and on site laundry. Old Colorado City, Manitou Springs, Garden of the Gods, and Red Rocks Park are just minutes away.

SOLD

SOLD

SOLD

2

3

4

1





SOLD

SMOKEY TRAIL APARTMENTS I 38 UNITS I $1,200,000510 Smokey Trail Drive, Limon Colorado 80818

Buyer Representation. With a perfect mix of one, two and three bedroom units, this property offers the newest, and arguably the nicest apartments in Limon. Built in 1993, the property includes adjacent land platted for additional apartments.




For the second year in a row, Olive Real Estate Group placed FIRST in the Colorado Springs Business Journal’s “Best in Business” for Commercial Real Estate.

For the second year in a row, Olive Real Estate Group placed FIRST in the Colorado Springs Business Journal’s “Best in Business” for Commercial Real Estate.

Olive Real Estate Group: Your Local Colorado Springs Apartment Brokerage Resource

THE POSITIVELONG-TERMPicture for Apartments

• Millennials are (finally) moving out of Mom and Dad’s basement

• College graduates are not finding the high paying jobs they were expecting

• Baby Boomers aren’t just downsizing into another home they own. Many, instead, are preferring more mobility in their retirement years – renting offers just that.

• Continued lack of confidence in the single family housing market recovery continues to make multifamily property a strong investment in real estate portfolios.




506 & 514 N CASCADE AVENUEDemand for Downtown Housing is exceptionally

strong. Many managers have waiting lists and

rents are climbing fast. This strong demand has

even reached the point where new product is

coming out of the ground despite the soaring costs

of new construction. The prime location of 506

& 514 N Cascade and its apartment conversion

potential offer a wonderful investment opportunity

at a fraction of replacement cost. Contact us

for information on architectural drawings and

contractor bids that will save substantial due

diligence time and cost.

PROPERTY DESCRIPTIONThis historic Victorian style inn property, is comprised of two mansions built in the late 1800’s. One of the buildings is

listed on the National Register of Historic Place. Both buildings underwent substantial renovation in the late 1970s, greatly

updating original systems. The property features 25 unique guest rooms, and 25 bathrooms. Original woodwork, Van Briggle

fireplaces and covered porches are just the beginning of the character the property holds.

Apartment Conversion OpportunityOLIVEREAL ESTATEGROUP, INC.




Stuart [email protected]. 719.491.2494

Stanton [email protected]. 719.331.3402

Alex [email protected]. 719.659.1095

719.598.3000www.olivereg.com102 N Cascade Avenue, Suite 250,Colorado Springs, CO 80903

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Property Size: 15,477 Square Feet

Sale Price: $1,195,000

Land Size: $22,067 Square Feet

Zoning R5 (Multifamily Residential)

CALL FOR DETAILS719.598.3000.

the multifamily olive real estate group, inc. investor · 2020-03-12 · avg rent for units...

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