Mesa Vista Apartments, a 60-unit apartment community with eight buildings at 2910 Sage St., sold this month for $3 million to Las Vegas-based Cabana Holdings LLC. The seller was Mesa Vista Properties LLC.
ARA Newmark Executive Managing Director Kevin McKenna and Associate Saul Levy represented the seller in the transaction. Cabana Holdings is a private investment group new to the Colorado multihousing market.
“Mesa Vista is a well-maintained asset that had been under the same ownership for nearly 15 years,” said Levy. “The all-cash buyer had been searching for over a year across the southwest for the right opportunity and moved quickly to close on Mesa Vista in under 30 days. This speaks to the strength of the market in Colorado Springs currently and how quickly communities are trading, once they come on the market.”
The complex recently underwent several capital improvements, including new roofs, new vinyl windows and a renovated leasing office.
The property is located in the desirable west submarket, an area that boasts some of the highest rents in Colorado Springs. During the second quarter of 2015, this submarket produced some of the highest average rents in the city at $1.11 per square foot, and 6.7 percent year-over-year rent growth. This area has helped lead the Colorado Springs apartment market in producing the strongest fundamentals the city has seen in the past 13 years.
Mesa Vista’s proximity to major developments made it attractive to Cabana Holdings, Levy said. It is blocks from the proposed Penrose-St. Francis, a 51-acre, 775,000-square-foot hospital campus that will be the largest of all three of the hospital’s campuses. In the fall of 2014, the Veterans Administration opened a $20 million, 80,000-square-foot VA clinic that serves more than 20,000 veterans and is within one-half mile of Mesa Vista. Near the property, the Colorado Department of Transportation also broke ground on a $13 million renovation to the Fillmore/I-25 interchange.