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2/24/22
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Austin, TX-based Shir Capital has acquired Hotel Elegante, a 496-key hotel property on 17 acres in Colorado Springs, CO. Built in 1974, the property is located at 2886 S. Circle Drive and features a conference center, restaurant, pool, and lounge.
Shir Capital obtained a $42.5 mil loan from Parkview Financial for the purchase, redevelopment, and repositioning of the property. The new ownership plans a phased renovation of the common areas as well as the conversion of the rooms to studio apartments over the next 24 months.
Working within the current room layouts, the new ownership will add kitchenettes and closets, and will also perform upgrades to modernize the rooms. The units are approximately 350 sf in size, with all utilities included in the rent. Additionally, the 29.6k sf conference center will be converted into self-storage to be run by a third party and will be available to the greater community.
The project is located in south Colorado Springs. It is approximately three miles from downtown Colorado Springs and is a 15-minute drive to the Colorado Springs Airport. The apartment vacancy rate in the submarket is about 3.6% and there have been no new multifamily projects in south Colorado Springs for more than five years.
Malcolm Davies and Zack Streit of The Davies Group at Los Angeles-based George Smith Partners, arranged the financing on behalf of the borrower.
“This dated hotel presented an ideal adaptive reuse strategy for the borrower. Ultimately, the project will help meet some of the pent-up demand for workforce housing in the underhoused and growing Colorado Springs market,” said Paul Rahimian, CEO and Founder of Parkview Financial.
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