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Page 12 — Multifamily Properties Quarterly — November 2017
Market Update
N orthern Colorado con-
tinues to experience
strong demand from
market-rate apart-
ment developers, with
the majority of the interest
being in Fort Collins, Loveland
and the outlying communities,
including Johnstown,Wind-
sor andTimnath – although
there also is some demand in
the Greeley/Evans area.This
demand is due to the ongoing
favorable drivers in Northern
Colorado – employment and
population growth. Employ-
ment in Larimer andWeld
counties, combined, grew
at a tremendous rate of 4.4
percent from July 2016 to July
2017, according to the Colo-
rado Department of Labor &
Employment.This equates to
approximately 11,300 new jobs
in a single year.
With respect to population,
the Fort Col-
lins/Love-
land met-
ropolitan
statistical
area grew
by 6,125
people, or
1.8 percent,
from July
2015 to
June 2016,
ranking
the MSA’s
growth
51st in the
nation. I
believe this population growth
was held back somewhat by
the extremely tight hous-
ing market during that time
period, which made it difficult
for both buyers and tenants
to secure housing.The benefi-
ciary of that extremely tight
housing market was the Gree-
ley MSA, which experienced
population growth of 9,879
people, or 3.5 percent, during
the same time period, ranking
as the fourth-fastest growing
MSA in the U.S., according
to the U.S. Census Bureau.
Another factor that likely con-
tributed to the Greeley MSA
growing faster than the Fort
Collins/Loveland MSA is the
relative advantage the Greeley
MSA has in terms of housing
affordability.
These strong demand driv-
ers have resulted in a stable
apartment market despite a
significant number of new
units being delivered. Asking
rents for Class A, institutional-
quality/scale communities
increased approximately 4.35
and 5.03 percent in Fort Col-
lins/Loveland and Greeley/
Evans, respectively, from
October 2016 to October 2017.
During that same time period,
occupancy remained virtually
the same, declining by just 0.6
percent in Fort Collins/Love-
land area, to an average of 95
percent.The communities in
the Greeley/Evans area expe-
rienced impressive occupancy
growth of 4.63 percent to an
average of just over 97 percent,
according to our October mar-
ket report.
With the strong demand
drivers and the stable apart-
ment market, I expect that
several projects that just began
leasing units or will begin to
lease units within the next six
months, will experience strong
lease-up phases (subject to
seasonality).These Class A,
institutional-quality/scale proj-
ects include:
• Cycle Apartments. Loveland-
based McWhinney is develop-
ing this 405-unit apartment
community, located adjacent
to the newly redeveloped Foot-
hills Mall in midtown Fort Col-
lins.The project will consist of
18 three- and four-story build-
ings.The unit mix will consist
of approximately 20 percent
studio units, 60 percent one-
bedroom units and 20 percent
two-bedroom units.The first
units became available for
occupancy earlier this month.
McWhinney is targeting the
urban professional and baby
boomer demographics.
• Bucking Horse Apartments.
There are 322 units under con-
struction, consisting of condo-
style apartment units and
townhome-style apartment
units within the development,
just northeast of Timberline
and Drake roads in Fort Col-
lins.The project will include
one-, two- and three-bedroom
units within two- and three-
story buildings situated on
an 18.26-acre parcel and will
include 572 parking spaces.
The project broke ground in
January, with plans to deliver
units in December.This proj-
ect is being developed by Fort
Collins-based Bellisimo Inc.
• Vibe Apartments.This proj-
ect is under construction and
is located north of theTerra
Vida apartment community,
southeast of Harmony Road
and Lady Moon, in southeast
Fort Collins.The community
will include 276 units within
10 three-story apartment
buildings, plus a 6,000-square-
foot clubhouse, pool and
picnic area, constructed on
a 10.2-acre site. Additionally,
nine live-work units will be
included. Delivery of units is
estimated for this winter.The
project is being developed by
a joint venture between Fort
Collins-based Imago Inc. and
Denver-based Milestone Devel-
opment Group.
• Pinyon Point. McWhinney
also is under construction on
a 166-unit lifestyle apartment
community in south Loveland,
near the north-east corner of
U.S. 287 and 14th Street SE.
The community is being con-
structed on approximately 10
acres.The project will include
studio, one-bedroom, two-
bedroom and three-bedroom
units ranging in size from 549
sf to 1,300 sf.The community
is expected to deliver units in
December, with construction
scheduled for completion by
April.
With the continued popula-
tion and employment growth
Northern Colorado is experi-
encing, additional apartment
development should continue
and the apartment developers
should enjoy strong perfor-
mance of their projects for the
next several years.▲
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