Pinnacle Announces Sale of 10 Unit Short-Term Rental Property

Pinnacle Real Estate Advisors, LLC is pleased to announce the sale of a 10-unit property located at 3314-3320 W. Colorado Avenue, Colorado Springs, CO 80904. The asset is a 9-unit motel and single-family home making up a total of 5,207 square feet in 10 units. The Seller, 3320 LLC, a Colorado limited liability company who acquired title as Hotel San Ayre LLC, was renting out the motel units as office/retail space, and renting the single-family home plus an upstairs apartment to long-term renters.

The property was sold to BC Holdings One, LLC, a Colorado limited liability company, on August 9, 2021 for $1,250,000 ($125,000/unit and $240.06/SF). The purchase price represents a 6.2% Cap Rate. Buyer contact, Tyler Cande, stated, “We are thrilled with the acquisition of this asset. The pride in the asset over the past 18 years of ownership is clear and we believe it is the most beautiful building on the block. Because the property is already in such excellent condition, we only have to make minor repairs, and add kitchenettes back into the six units where they have been removed. Our experience in both the hospitality and multifamily asset classes will serve us well as we plan to utilize both short-term and long-term rentals to realize outsized returns. Special thanks to the Pinnacle team for delivering another unique and exciting asset to our portfolio”.

Barton Thompson and Kyle Gossett of the Thompson Group at Pinnacle Real Estate Advisors represented the Buyer in the transaction. Thompson stated, “This is the type of value-add investment that allows a buyer to increase cash flow and net income substantially, by performing minor renovations and putting the property into its highest and best use. Colorado continues to provide these type of investment opportunities to buyers and sellers alike, and we don’t foresee the market slowing down in the near future. We gladly represent both buyers and sellers looking to capitalize on the current market”.  The Thompson Group specializes in multifamily investments, thinking creatively, and crafting win-win solutions for its clients.