(To read more on the multifamily market, click here.)
COLORADO SPRINGS-Sunset Ridge Associates LLC, which is comprised of investors from New York and California, recently paid $21.6 million for the 240-unit Sunset Ridge apartments in the northeast quadrant of the city. The sale of the community at Vickers and Rangeview equates to $90,000 per unit. Sunset Ridge was completed in 1996.
The complex is comprised of 52 one-bedroom units measuring 808 sf; 174 two-bedroom, two-bath units that are each 1,100 sf; and 12 three-bedroom, two-bath units, that are each 1,317 sf. All units have fireplaces and full-sized washers and dryers. The community also has 160 garages with automatic door openers and a "resort" center that includes a clubhouse, fitness center, hot tub, sauna and heated outdoor pool.
The seller was Sunset Ridge LLC, a local owner who purchased in 2000. The new owners are in the process of a major renovation, including adding penthouse suites. Omni Apartment Communities will mange the complex.
Ron Spraggins, president of Commonwealth, one of the oldest broker and research firms in the Springs, handled the sale. "We've had contact with the seller since he came to the Springs in the '70s and bought his first of several apartment complexes," Spraggins says. Spraggins, who handled the transaction with his son, Shane, notes that the property wasn't on the market.
"We we're were searching our data banks for a complex for some California and New York investors and the Sunset Ridge met most of their requirements," Spraggins explains. "We then contacted the owner who told us the complex wasn't for sale." But Spraggins wouldn't take "no" for an answer and continued to pursue the deal. "After several months of intense negotiations, we finally got it closed," he says.
Indeed, the deal wasn't that out of the ordinary, he says. "The majority of Commonwealth's sales are on properties that weren't on the market," he says. "We've found that most of the better deals are on complexes that are not for sale."
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