Vukota Capital Management Acquires Residence at Austin Bluffs and Chestnut Springs in Colorado Springs, Colorado
10 September, 2015
Denver, CO – Vukota Capital Management (VCM) has acquired two addition apartment complexes located in Colorado Springs, Colorado for a total purchase price of $23.6 million. Residence at Austin Bluffs is located at 4110-4390 Morning Sun Avenue, and Chestnut Springs 4315-4331 is located at N. Chestnut Street. The 312-unit Residence at Austin Bluffs was purchased for $18.4 million while the 92-unit Chestnut Springs was purchased for $5.2 million.
Residence at Austin Bluffs is situated in the Palmer Park submarket at Academy Boulevard and Austin Bluffs Parkway, two major arterials where more than 50,000 cars pass daily. The property is situated directly behind the Austin Bluffs Plaza, a 300,000 square foot redeveloped grocery-anchored (King Soopers) center with retail amenities. Furthermore, 500,000 square feet of retail surrounds the property along Academy Boulevard and Austin Bluffs Parkway, providing an abundance of amenities.
Chestnut Springs is situated in the highly desirable West submarket offering strong demographics surrounded by amenities. The property is just south of the Garden of Gods retail corridor with more than 600,000 square feet of retail within walking distance and/or a short drive, that includes shopping, dining and entertainment venues.
Both transactions were closed on September 1, 2015 bringing VCM’s multifamily holdings to 8 properties in Colorado.
The transactions were funded by investments of equity capital from VCM and other accredited investors, as well as $18.8 million in mortgage financing from CBRE Capital Markets.
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.