Off Market 236 Unit Luxury Apartment Complex in Pueblo, Colorado!

Good day DG'ers!!!
This Off Market 236 Unit Luxury Apartment Complex in Pueblo, Colorado fell into my laps!
I read the details behind sale and sales package and I found it to be a Most Excellent Opportunity to buy and hold this asset!!
Please discover more for yourself and/or share with anyone you know who purchases this type of asset!
Any help is deeply appreciated!
PM ME for Sales Package!!!
Denni Punongbayan

The HUD loan has been placed now and must be assumed. CO broker involved who will pay Troy and I 1%. Off Market still
Sellers turned down 2 offers at $26 million and it’s not on the market currently . . . plans are to offer it this Fall at a price north of $26 million.
                                  
15% CASH-ON-CASH!
8% CAP!
30% IRR!                          
Landings at Eagleridge apartments in Colorado. http://landingsateagleridge.com/
 
The Landings at Eagleridge is a 236 unit Class A project. Phase II, 96 units, was built in 2008 and leased to 95% in just a few months. Phase I, constructed in 2002, contains 140 units.  It pencils out better than any project we’ve seen in many years after the refiance of the existing loans is complete.  After the refinance, it’s almost an 8% Cap, 15% cash on cash and over 30% IRR. 
The refinance loans are 223 (a)7 HUD loans with 40 year amortization/assumable at same rate/term for life of loan/nonrecourse, so they’re the best loans in the industry at this time.
 
The Landings was constructed by the oldest contractor in Colorado (over 112 years) for their own account with a long term hold in mind.  The owners are a Grandfather, Father, and Son.  The Grandfather is 90 years old and due to personal health reasons has forced the sale.  Both the Grandfather and Aunts have lives at the project for years.  They want to sign leases with the new owner which speaks volumes about the liveability of the complex. Consequently, the quality of construction and attention to detail are much better than the typical project that was built to flip upon completion and rent up, i.e., Lincoln, Spanos, Westwood, etc.
 
The price includes a FREE/CLEAR 3.8 acre vacant lot ($500k value) that is located inside the gated/fenced area of the complex.  The site was recently sodded/sprinklered, added playground, volley ball court, etc.(Over $100k).  This lot has been approved for 72 additional units, which will improve the cash flow since all the amenities have already been paid for by the other two Phases. The builder/owner will build these out for the new owner if desired.
 
The owners have increased the street rent schedule $100 per unit for the 2/3 bedroom units and a $40 increase on the one bedrooms.  They have rented many units at this increased rate.  So the cash flow will considerably more for the next 12 months vs. the previous 12 months.
 
Best news is it’s located in Pueblo Colorado, which is 30+ minutes south of Colorado Springs and has a more stable rental market than Denver or Colorado Springs. 
Due to the population size (approximately 200,000 SMSA), national builders haven’t and won’t over build the market like they do in larger population areas.  In fact, there is only “one” other newer Class A complex in the entire city and the location is inferior to the Landings.
 
Pueblo is  also home of Lake Pueblo, the largest lake on the front range (2nd largest in the State) and the most popular boating lake in the state. Also, one of the best fishing lakes in the State.
This has contributed to many people retiring to the city.  Being over 1,000 feet lower than the Springs, the weather is considerably warmer, i.e. mid 90’s common during summer months.
 
Vestas has completed it’s new $240 million facility that will added approximately 500 new jobs to that economy.  Vestas is the world’s largest maker of the windmills for electricity.  The city, state, etc. gave Vestas over $30 million to entice them to build in Pueblo, which shows the pro business climate of the area.  The University recently got their athletic programs back and enrollment has increased considerably, in fact they had to lease several hundred units from the local motels to house the new students, as their dorms are full with waiting lists. They approached the Landings to master lease 40 units, but do to high occupancy, there weren’t that many units available.
 
The Eagle Ridge area has seen a lot of majors build new stores in the last several years, including one of the largest shopping mall in the city.  Ft. Carson’s new interchange at Gate 20 will make Pueblo much more attractive for renters, as the distance will be comparable to the Springs, living costs are less, and less traffic.
 
The owner also owns over 6 acres zoned commercial in the same location.  Holiday Inn has been trying to buy it to build a new store in the Eagle Ridge area, over 25 other majors have built new complexes, including La Quinta, Best Western, Hampton Inn, Comfort Inn, Cracker Barrel, Best Buy, etc. and the new intersection to the north of the Landings will have over 100 new stores when complete.  Best Buy and several other majors have already finished their stores in that area.