The Axton Group and The Bascom Group Announce the Sale of ‘Park at Penrose’ and ‘Park at Palmer’ Multifamily Communities Located in Colorado Springs, CO
The newly renovated apartment properties are adjacently located in the Palmer Park submarket
COLORADO SPRINGS, Colo., March 21, 2023 /PRNewswire/ — An affiliate of The Axton Group (“Axton”) and The Bascom Group, LLC (“Bascom”) announced today they have 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, situated along N. Academy Boulevard near Austin Bluffs Parkway. 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’ booming 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 I-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 state-of-the-art fitness center, a dog park, pool, a club house with game rooms and billiards, business centers, and grilling and picnic areas. The Partnership enjoyed several years of strong operating cash flow and successfully re-financed the properties in February 2022. 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. The Partnership is grateful for the efforts of the entire team involved in stewarding these assets over the past four years, leading to a successful outcome for the Partnership.
The Axton Group is a privately held investment management firm based in San Francisco with a focus on value add and opportunistic real estate and real estate related assets in the U.S and Canada. Axton’s management team has extensive sourcing capabilities through its proprietary network and invests opportunistically across asset types, geographies and capital structure as risk/return dynamics shift. The firm invests in direct real estate and real estate related operating companies with the understanding that real estate is subject to cycles, both in terms of its underlying supply and demand fundamentals and its pricing relative to other asset classes. Axton seeks to invest in undervalued assets which can be enhanced with redevelopment, aggressive asset management, and repositioning in fundamentally strong markets. Axton prioritizes opportunities with strong current cash flow and capital appreciation with a focus on capital preservation. For further information, please visit www.axton.com.
Bascom is a private equity firm specializing in value-added multifamily, commercial, and non-performing loans and real estate related investments and operating companies. Bascom sources value-added and distressed properties including many through foreclosure, bankruptcy, or short sales and repositions them by adding extensive capital improvements, improving revenue, and reducing expenses by realizing operational efficiencies through implementation of institutional-quality property management. Bascom, founded by principals Derek Chen, Jerry Fink, and David Kim, is one of the most active and seasoned buyers and operators of apartment communities in the U.S. Since 1996, Bascom has completed over $21.4 billion in multifamily value-added transactions encompassing 357 multifamily properties and over 91,000 units. Bascom’s commercial transaction volume is $5.8 billion in total and amounts to over 23.4 million square feet. Bascom has ranked among the top 50 multifamily owners in the U.S. Bascom’s subsidiaries and joint ventures include the Bascom Value Added Apartment Investors, Shubin Nadal Associates, Spirit Bascom Ventures, REDA Bascom Ventures, Bascom Northwest Ventures, Bascom Arizona Ventures, Harbor Associates, Village Partners Ventures, and Realm Group. Bascom’s subsidiaries also include Premier Workspaces, one of the largest privately held executive suite, coworking and shared workspace companies in the U.S. For additional information, please visit www.bascomgroup.com.
SOURCE The Axton Group
Originally published at https://www.prnewswire.com/news-releases/the-axton-group-and-the-bascom-group-announce-the-sale-of-park-at-penrose-and-park-at-palmer-multifamily-communities-located-in-colorado-springs-co-301776817.html
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