Alturas Real Estate Fund Acquires Office Building in CO
Written by Travis Barney | August 1, 2019
The Presidio, an 81,222 SF Class A office building in Colorado Springs, CO, represents a significant expansion of our presence in Colorado.
The Property
This modern, four-story glass office building, located at 1155 Kelly Johnson Boulevard, is one of Colorado Springs’ most recognizable buildings. Situated on 4.12 acres, it is located just off of I-25, the primary traffic artery for Colorado Springs, and is part of the North I-25 submarket, which has historically out-performed the greater Colorado Springs market in terms of occupancy levels and rental rates.
The building is 89% occupied with 23 tenants representing a diverse group of industries including healthcare, technology, and financial services.
The Deal
We have been looking for acquisitions in the Colorado Springs market for some time, but until The Presidio came along, had been unable to find the right opportunity. After looking at several of those deals alongside us, and having become familiar with our acquisition criteria, Peter Scoville and Greg Phaneuf of Cushman Wakefield alerted us to The Presidio deal and strongly recommended it as a good fit for us.
In addition to representing us on the transaction, Peter and Greg were able to lease a significant portion of the vacant space during our due diligence period, bringing the occupancy rate to up to 97% at closing. This created significant value prior to acquisition and provides for a very attractive yield once the new tenant is in occupancy.
Patrick Devereaux of JLL represented the seller in the transaction.
Improvements
Our plans for The Presidio include upgrades to the lobby, elevators, lighting and parking lot. Long-term, we’re also evaluating possible changes to the landscaping and signage.
If you know of a similar project that we should consider, please reach out to devinmorris@alturas.com or travisbarney@alturas.com. Additionally you can download our acquisition criteria here:
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