Eagle County won’t sell affordable apartment complex
EAGLE COUNTY, Colorado – The county government isn’t going to sell the Lake Creek Village apartments in Edwards.
The Eagle County Commissioners last year started negotiating with a pair of companies to sell the Edwards apartment complex. Money from the sale would have then gone toward buying land for, or buying into, other affordable housing projects.
The commissioners first signed a “letter of intent” to negotiate with Corum Real Estate Group, which manages the complex. At the time, the sale price was $53 million before the deal fell through.
After the agreement with Corum expired, the commissioners began exclusive negotiations with Morningstar Mountain Properties to sell the apartments for $45 million. That agreement expired last summer, but the parties continued to negotiate.
But, given the economy and state of the financial markets, it became apparent over the last couple of months that the deal probably wouldn’t happen.
“It’s no fault of anyone’s – it’s the economy,” Commissioner Sara Fisher said. “We know the value of this property, and it doesn’t hurt us (to not sell).”
Commissioner Jon Stavney said part of the problem with selling Lake Creek right now is that the complex simply doesn’t generate the kind of cash flow it needs to right now. Occupancy is down, and new renters can find some pretty attractive rates, Stavney said.
“We’re better off holding on to that asset,” Stavney said. “It still makes money for us.”
Stavney said if the county could have sold Lake Creek Village last fall, when values were still high, then the county could have used money from the sale to buy land now.
“We’d have looked like geniuses,” Stavney said. But, he added, since the idea first surfaced in the middle of an election year, not making the sale was probably for the best.
While this sale isn’t going to happen, both Stavney and Fisher said Lake Creek Village could be for sale again sometime in the future.
“We have a good relationship with (Mountainstar),” she said. “I hope there’s a chance in the future to work with them.”
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