Last month I reported on how the Colorado Springs apartment market was at a tipping point, with the balance of power moving from renters to landlords.
The demand for apartments is up as the housing crisis has turned former homeowners into renters, and supply is down as builders have held off on constructing new units.
But at least one project will be breaking ground soon. More than two years ago Denver-based Southwestern Investment Advisors and Utah-based developement firm Talos Holdings applied for a loan to finance a 230-unit luxury apartment complex at Woodmen Road and Union Boulevard.
The financing closed in early February, and last week the developer pulled more than $25 million in permits for construction of the Peaks at Woodmen Apartments.
“There’s been so little construction in Colorado Springs that we saw it as an opportunity,” Southwestern Investment Advisors president Mark Campbell told me last month.
Still, this will do little to abate the coming affordable-housing crunch. That’s 230 additional units to be dropped into a market of 44,000 rentals, and troop draw-downs and the potential Aviation Brigade at Fort Carson could mean an influx of new renters in the market.