Vukota Capital Management Acquires Villages at Woodmen In Colorado Springs, Colorado
21 August, 2015
Denver, CO – Vukota Capital Management (VCM) has acquired Villages at Woodmen located at 1629 E. Woodmen Road, Colorado Springs, Colorado for a total purchase price of $16.8 million. The 3-story, 183 unit, garden style apartment building is currently 96% occupied.
The buildings are in good condition with significant upgrades recently completed which include exterior paint, new clubhouse and pool, and renovated apartment units including upgraded countertops, flooring, lighting and appliances.
Attractively located at the intersection of two of the most significant thoroughfares in all of Colorado Springs, E. Woodmen Road and N. Academy Blvd., in the North Submarket which experienced an average recent vacancy of 4.6% and the highest average rents in the city with market-wide rental growth of 6.0%.
The transaction closed on August 18, 2015 and brings VCM’s multifamily holdings to 5 properties in Colorado. This is VCM’d first property in Colorado Springs.
The transaction is funded by investments of equity capital from VCM and other accredited investors, as well as $5.3 million in mortgage financing from Wells Fargo.
VCM multi-family strategy is to acquire properties in secondary and tertiary markets below replacement cost in growing supply constrained communities where, over the long-term, rents are expected to increase above the rate of inflation. Key value drivers that VCM considers are the number of jobs created relative to unit supply, and the spread between cap rates and borrowing costs. VCM’s typical property acquisitions range between 100 and 400 units, or $5.0 million to $35.0 million purchase price.