Western National, Nor’Wood JV to Build 3 Colorado Multi-Family Projects
- Nov 08, 2011
November 8, 2011
By Scott Baltic, Contributing Editor
Counting on the continued strength of the Colorado Springs apartment market, a new joint venture of Western National Realty Fund II, L.P. and Nor’Wood Development Group announced plans to build three projects in Colorado Springs, Colo., beginning early next year. The complexes are described as “upscale highly amenitized multifamily projects … catering to professionals and young families” and will occupy what are characterized as “strategic infill locations” that will offer residents access to entertainment, restaurants and trail systems.
Western National Realty Fund II, L.P. is an affiliate of Western National Group, Irvine, Calif.
“We think the market is attractive due to many factors, including a growing population which is dynamic and highly educated,” Kevin Hampton, vice president of development for Western National Realty Advisors, said. “In addition, Colorado Springs has not experienced a lot of new construction in the past five years which has resulted in a shrinking vacancy of existing product.”
According to second-quarter figures released by the Colorado Division of Housing in August, the metro Colorado Springs market had an average rent of $761 and a vacancy rate of 6.4 percent. The combined average vacancy in the state’s seven largest markets dropped to 5.2 percent, the agency noted, the lowest in 10 years, with average statewide rents creeping up 2 percent from a year prior.
The JV’s first development will be a 315-unit apartment community scheduled for groundbreaking in early 2012 on a site within Nor’wood’s First & Main Town Center. First opened in 2000, the center is anchored by JC Penney, Super Target, Lowe’s, T.J. Maxx, Dick’s Sporting Goods, Whole Foods and Best Buy, as well as a 16-screen Cinemark Theatre and Colorado’s first 3D IMAX.
Following the First & Main development, a 260-unit project will be built at the North Pointe complex in the Rockrimmon submarket. Design on a third project, at Woodman and Powers near the St. Francis Medical Center, is still under way.