County: Selling Edwards apts. makes sense
Edwards CO Colorado
EDWARDS, Colorado ” Despite a drop in real estate prices, Eagle County may sell the Lake Creek apartments in Edwards, Colorado in the near future.
Two weeks ago, the county decided to forego an agreement to negotiate the sale of the affordable apartment complex in Edwards a with Corum Real Estate Group and get bids from other companies.
The county received about half a dozen new offers and plans to sign a letter of intent to negotiate with the highest bidder soon, said Alex Potente, the county’s housing director.
“Many of the buyers who were previously interested submitted bids,” he said.
Officials had initially hoped to close the deal with Corum before the end of the year, but decided to delay the process because of the poor economy.
When the county first started negotiating with Corum ” the Denver-based company that manages the property ” $53 million was talked about as the sale price. But Corum’s offer dropped and officials decided they wanted to explore other bids. And even though the bids are less, it still makes sense to sell the property, Potente said.
“We have done that analysis and at the price points we’re discussing, it does appear financially to make substantially more sense to sell now,” he said.
The county still plans to reinvest the money from the sale into other affordable housing opportunities and should get more value from the money from the sale because land and housing prices have dropped, Potente said.
“We’ll get more for our money,” he said.
Commissioner Peter Runyon said the sale still makes sense for a number of reasons.
“If our property is worth less than it was a year go, so is the property and projects we’re looking to acquire,” he said. “We basically get the same bang for our buck.”
Assisted living facilities and land are the two reinvestment opportunities that Runyon is most interested in.
“No matter how far down we go, my personal crystal ball says that eventually we will be in the same situation where the free market is going to be pricing local housing out of site,” Runyon said. “Having land available to deal with that at the appropriate time is a good bank of those dollars.”
Reinvesting the money in a building project could also create jobs, Runyon said.
“Even at a very modest rate of return, this is a good deal,” he said.
Staff Writer Chris Outcalt can be reached at 970-748-2931 or email@example.com.