COLORADO SPRINGS, CO—Hamilton Zanze, a San Francisco-based real estate investment company, recently sold 292-unit Spring Canyon Apartments in Colorado Springs, for $40.5 million ($138,699/unit). ARA Colorado brokered the deal.

Hamilton Zanze, which primarily invests in multifamily communities in the Southwest, Pacific Northwest, and Mountain states, purchased Spring Canyon in November 2004 for just over $28 million. During its ownership,the firm established new onsite management through Mission Rock Residential and executed a value-add program that included unit renovations and enhancements to the clubhouse and fitness center. The upgrades allowed the operator to secure significant rent premiums and achieve all-time high monthly revenues at the time of the sale.

"Spring Canyon was one of Hamilton Zanze's earliest transactions. We have held the property for almost ten years, and we have seen the property excel over the hold period. The sale price and returns we were able to achieve speak to the strength of the submarket and quality of asset," said Hamilton Zanze's chief investment officer Kurt Houtkooper of the transaction.