How We Secured Meadows Pointe And Why It Was a Standout Deal

The Opportunity: A Deal That Came Back Around

In real estate investing, persistence often pays. Our newest acquisition, Meadows Pointe being rebranded Southgate Commons, is a case study in patience, local knowledge, and seizing opportunity when others step away.

We first evaluated this deal nearly seven months before we went under contract only to have it awarded to another buyer. But as experienced operators, we knew the fundamentals were strong and the pricing was unrealistic for the market. So we waited.

When the original contract fell through and the seller became more motivated, we were ready and this time, we came back to the table with better leverage, deeper insights, and a plan to close with terms that worked for everyone.

The Seller: Retiring Owner, Mismanaged Portfolio

The seller owned 171 units across Colorado, all self-managed with declining efficiency. While larger buyers focused on bulk acquisitions, we zeroed in on one asset which was the worst performing: a 77-unit property in Stratton Meadows, a working-class neighborhood in Colorado Springs.

• High vacancy

• Under-market rents

• Deferred operations but strong bones

  
  

This was exactly the kind of under-the-radar opportunity ZB3 specializes in.

The Negotiation: Value for Capital

When the deal came back around, we negotiated:

✅ $5 million purchase price (~$63K/door after credit)

✅ $108K seller credit

✅ Seller agreement to prepare all vacant units to be rent ready before closing

✅ Major systems (roofs, windows, exteriors, boilers, water heaters) already addressed or had no issues

In short: Heavy value-add returns with light value-add risk.

Why We Love This Deal

Southgate Commons checked all the right boxes for us and then some.

First, the pricing alone made this an immediate standout. At just $63,000 per door, after credits, we were purchasing well below replacement cost a rarity not just in Colorado Springs, but across much of the Midwest as well. In a market where comparable assets are trading significantly higher with almost all comps in the $100,000 per door or more, that kind of basis gives us a real margin of safety.

But price was just the beginning.

What really made this deal attractive was the operational upside. Most of the units will be rent-ready on day one, thanks to the seller agreeing to renovate all vacancies prior to closing. That means we’re stepping into a property with minimal renovation risk, allowing us to focus immediately on leasing and stabilization something we’ve proven we can do quickly and efficiently.

The market dynamics in Colorado Springs only strengthen the case. New rental supply is down 75% year-over-year, while demand continues to outpace construction. This creates a favorable environment for growth, especially in the workforce housing segment, which has been and will continue to be underserved in this submarket.

We were also intentional in how we underwrote this deal. Using a higher than market exit cap, targeting below market rents, and a conservative 2–3 year hold period, we’ve set expectations that reflect today’s environment not yesterday’s optimism.

At its core, Meadows Pointe represents what we look for in every acquisition: meaningful upside, limited downside, and the ability to drive results through disciplined execution.

The Business Plan

Our execution strategy is simple and proven:

• Increase occupancy to over 90% within 12–18 months

• Partner with a local property manager for efficiency and knowledge

• Rebrand the asset and refresh exterior/interior appeal

• Take care of deferred maintenance with new electrical panels and asphalt overlay

• Grow NOI from ~$175K → $500K+

• Exit via refinance or sale depending on market

  
  

Why Investors Trust ZB3

We don’t just bring deals, we bring discipline.

✅ $200K+ of ZB3 capital committed to this project (10% of raise)

✅ Years of real estate + underwriting experience

✅ Regular site visits and reporting

✅ Transparent and regular updates with KPIs and photos

Our investors trust us because we prioritize capital preservation and transparency.

Ready to Learn More?

Meadows Pointe reflects everything we stand for at ZB3: Conservative underwriting, motivated sellers, mission-driven operations, and transparency every step of the way.

If you’re ready to grow your wealth through real, risk-managed multifamily investments, we’d love to partner with you.

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About ZB3 Real Estate

We help high-earning professionals invest passively in undervalued multifamily properties across the Midwest and Mountain West. Our focus: integrity, performance, and creating long-term partnerships that build generational wealth.