Alturas Real Estate Fund Purchases 110,405 SF Office Building in Colorado Springs
Written by Travis Barney | February 18, 2020
Colorado Springs, Colorado – February 5, 2020
Alturas Capital Partners, in our largest acquisition to date, added the Centennial Technology Center (Centennial Tech) to the Alturas Real Estate Fund. This addition brings the Fund’s assets under management (AUM) to $150 million.
The property consists of two single-story office buildings totaling 110,405 SF and is located at 4820 & 4920 Centennial Blvd, Colorado Springs, CO, 80919. Centrally located in the Colorado Springs market, the buildings are part of a rapidly improving submarket.
Colorado Springs is Colorado’s second largest city, with an employment growth rate well above the national average. It has been ranked as the “Fastest Growing City for Millennials”, and as the third “Most Desirable Place to Live” in the country.
The city’s rent growth as of 2019 was the highest in the country for midsized markets at 6.3% according to CoStar data. The city also ranks 12th on the Forbes' "The Best Places for Business and Careers” and is experiencing sustained job and population growth.
With the closing of this transaction, we are excited to be significantly expanding our presence in Colorado Springs. In conjunction with the excellent leasing and property management team, we feel that a strong foundation is being built for investment success in Colorado.
The building was initially 97% leased, with a Comcast call center occupying 66% of the space. As a result of that existing occupancy, the property offered strong in-place cash flow right out of the gate. In addition, the building has the highest parking ratio in the trade area – almost twice the area average. The Comcast lease expires in 2024 and the limited remaining term provided the uncertainty needed for us to acquire the asset. Ultimately, we became comfortable with the probability of Comcast renewing, and if not, our ability to secure new tenants.
Peter Scoville of Cushman & Wakefield assisted with the acquisition and helped us to secure a lease during due diligence to take the property to 100% leased at closing.
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