An affiliate of The Axton Group and The Bascom Group LLC closed on the sale of two multifamily communities, Park at Penrose and Park at Palmer, in Colorado Springs, Colorado, for $74.1 million. Park at Penrose with 374 units, and Park at Palmer with 112 units, are located at 3802 and 3903 Half Turn Road, in Colorado Springs. These adjacent properties, formerly named Summer Grove and Tanglewood, are located in the Palmer submarket, the fastest rent growth submarket of Colorado Springs.
The Axton/Bascom Partnership purchased the properties for $41.15 million in June 2019 and completed a successful multi-year renovation program to upgrade the apartment units and community amenities, resulting in significant renovation rent premiums. The properties’ neighborhood is conveniently located near shopping, dining, outdoor recreation and strong employment opportunities, driving organic rent growth during the partnership’s investment period. Major local employers include Amazon and FedEx, located near the Colorado Springs Airport, which is only a 15-minute drive from the properties. During the investment period, Colorado Springs continued to benefit from a steady influx of employers in the aerospace, military, technology, life science, healthcare and banking sectors who relocated to and expanded in this area. The nearby Interstate 25 provides property residents easy access to many major employment hubs and a direct one-hour commute to Denver.
Park at Penrose and Park at Palmer offer one, two, and three bedroom apartment options. Renovated units include new kitchen appliances and cabinets, updated flooring and lighting fixtures, and bathroom vanities. The properties feature a fitness center, a dog park, pool, a club house with game rooms and billiards, business centers and grilling and picnic areas.
Axton and Bascom are continuing to focus on investments in the multifamily sector across the United States, with a focus on value-add opportunities that arise as pricing resets amid significant global macroeconomic pressures.
