NAI Affinity Announces Sale of 16 Multifamily Units to the Estes Park Housing Authority

NAI Affinity
• 
April 22, 2024

Photo: Exterior photo of location at 507 Grand Estates, Estes Park.

NAI Affinity Announces Sale of 16 Multifamily Units to the Estes Park Housing Authority

NAI Affinity, a leading real estate firm specializing in commercial properties, is pleased to announce the sale of 507 Grand Estates (“Property”), a prime multifamily asset located in the popular mountain town of Estes Park. The transaction, which closed on March 21, 2024, for $4,800,000 represents a significant milestone in the local real estate market. Jake Hallauer, CCIM, Lauren Larsen, and Ryan Schaefer of NAI Affinity represented the Seller in this transaction.

The Property is an excellent, fully leased 16-unit apartment community and is located just off Highway 34, nestled less than 20 minutes from Rocky Mountain National Park (RMNP) with over 4.3 million visitors (2022), close proximity to Lake Estes, and just minutes to shopping in downtown, the Safeway anchored center, and the historic Stanley Hotel.

21 print 507 Grand Estates Dr 21 - NAI Affinity Announces Sale of 16 Multifamily Units to the Estes Park Housing Authority - NAI Affinity

The Property sale underscores continued strong demand for housing across the housing continuum. In Estes Park, the average detached home price is over $1,000,000 and over $551,000 for attached homes, as indicated by IRES Q2 2023 sales, and the current rental vacancy is approaching zero percent, according to a housing report by Root Policy Research in Q1 of 2023.

Recognizing the need for attainable housing in Estes Park, Trevor Kropp of NC Holdings, LLC, the Seller, recounted, “We originally built this property because we were aware of the shortage of affordable housing in Estes Park.” To that end, “We were happy to work with Estes Park Housing Authority on the sale of our property. We believe that the Estes Park Housing Authority is a great fit because they will continue to serve the people of Estes Park by providing quality housing at a more affordable price.”

In the opinion of Lauren Larsen, Managing Broker at NAI Affinity, the transaction reflects the current market trends and signals confidence in Northern Colorado’s economic outlook. Combined with the attractive 4.18% assumable Freddie Mac loan that expires in 2030, the Property garnered significant interest. Larsen shared, “It was a pleasure to represent the Seller, NC Holdings, LLC, in the sale of their 16-unit multifamily property at 507 Grand Estates. We believe the Estes Park Housing Authority was the best Buyer for the property and the Estes Valley community. In the Estes Valley Housing Needs Assessment and Strategic Plan, prepared in 2023 by Root Policy Research for the Estes Park Housing Authority, they noted that their goal is to create and preserve 550-700 dwelling units affordable to the local workforce over the next five to seven years so that the Estes Valley begins to improve availability and affordability of housing to the workforce”. By 2030, according to the Housing Needs Assessment (“HNA”), the total number of new or repurposed affordable units grows to 2,720 to address the current shortage of workforce housing and forecasted employment demand.

The Estes Park Housing Authority’s (“EPHA”) mission is to ensure a balanced and sustainable community through the creation and facilitation of housing opportunities and services for persons of low and moderate income. This transaction is an impactful step by the EPHA to meet goals outlined by the HNA. Scott Moulton, Executive Director of EPHA, shared, “Our local workforce is critical to the fabric of our community; providing a range of attainable housing options for our workforce is a primary goal of EPHA.” To do this, as cost of construction is a significant barrier, “preservation is a key strategy,” explained Moulton. “When the possibility of purchasing Grand Estates Apartments became a reality, EPHA moved quickly to leverage our Lodging Tax Extension funds to preserve and increase the number of workforce restricted homes in Estes Park.”

For the EPHA, the purchase of Grand Estates Apartments achieves three main goals, as detailed by Moulton: 1) Given the equity contribution to the development, EPHA was able to assume the existing loan at below current market interest rates which allows EPHA to keep rents in an attainable range versus needing to raise rents by, for example, $200 or more per month to maintain the required debt coverage ratio, among other criteria, a new loan would require, 2) EPHA is now, over time, able to further restrict the eight unrestricted units to the local workforce, and 3) EPHA can also extend the original 20-year workforce restrictions to ensure these units remain reserved to serve the Estes Park local workforce for the foreseeable future.

Moulton further explained, “If we lose restricted housing stock or current naturally existing affordable housing, the task of ensuring our community has adequate access to a range of housing options becomes more difficult. This purchase was an important piece of the puzzle to preserve and increase housing options in the Estes Valley. The Estes Park Housing Authority and our Board of Directors are pleased we were able to complete this transaction on behalf of our community.”

NAI Affinity would like to thank all parties involved in the transaction for their contributions to the successful sale of the Grand Estates Apartments and for the positive impact this transaction will have on the Estes Park community.

For more information about this transaction or to inquire about other commercial real estate opportunities in Colorado, please contact Lauren Larsen at (970) 663-3150.

Seller’s Representatives: Jake Hallauer, CCIM, Lauren Larsen, and Ryan Schaefer of NAI Affinity  

More About NAI Affinity: NAI Affinity is a Northern Colorado based commercial real estate brokerage firm serving clients throughout the region and the state of Colorado.  As a full-service firm, NAI Affinity provides focused and expert commercial real estate assistance through a wide range of services including commercial, land and investment brokerage and consulting.  NAI Affinity has decades of experience in commercial real estate with various property types, transaction structures, and in numerous municipalities. Their clients have the opportunity to leverage this experience to maximize their results.

Additional Articles: 16 Multifamily Units Sold to Estes Park Housing Authority (BizWest)

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