George Smith Partners Arranges Financing for 113-Unit Multifamily Acquisition in Colorado Springs, CO
|Fillmore Ridge Apartments, Colorado Springs, CO|
Colorado Springs, CO – Commercial real estate investment banking firm George Smith Partners has successfully arranged $3.965 million in financing on behalf of its client, LocalConstruct, for the acquisition of Fillmore Ridge Apartments, a 114-unit apartment community in Colorado Springs, according to Vice President Jonathan Lee. Lee was assisted by George Smith Partners analyst Shine Cheng.
“One of the major challenges in achieving financing for this acquisition was the fact that our client was Los Angeles based, and had never purchased a multifamily property outside of California,” explained Lee.
“Fillmore Ridge presented an excellent investment opportunity in the Colorado Springs market, as the community has had consistent occupancy rates and was substantially renovated. Because our client was new to the local market our challenge was to find a lender willing to finance the acquisition without local investment history from our client.”
The non-recourse $3.965 million acquisition loan closed with an interest rate of 3.86 percent for 10 years, with a 30-year amortization and a yield maintenance prepayment.
Fillmore Ridge Apartments, situated on 4.5 acres in Colorado Springs, consists of studios, one-, two- and three-bedroom apartments. The community recently underwent a substantial renovation, with more than $1 million invested in exterior and interior upgrades.
The property is located at 3210 North Chestnut Street in Colorado Springs, the second largest metropolitan area in Colorado, and is within El Paso County, which is the state’s most populated county. Due to its large population, El Paso is one of the best performing submarkets in the metro area, according to Lee.