No decision in Eagle County apartment deal
Eagle County, CO Colorado
EAGLE COUNTY, Colorado – Eagle County, Colorado officials are still negotiating whether to extend the deadline for Morningstar Mountain Properties to decide whether to buy the Lake Creek Village apartments in Edwards.
The county signed a non-binding letter of intent to exclusively negotiate the sale of the affordable apartment complex for $45 million with Morningstar in April. The letter included a 45-day diligence period for the company to decide whether it can get funding and purchase the property.
That deadline lapsed at the end of May, which means the county is no longer required to negotiate exclusively with Morningstar, said County Attorney Bryan Treu.
The county is still deciding whether to extend that diligence period, said Housing Director Alex Potente. The county’s other options are to take the property off the market or move on to a new buyer, he said.
Potente said he expects the county will decide what to do in the next few weeks.
County officials signed a similar agreement last year with Corum Real Estate Group. The Denver-based company offered $ 53 million for the apartments, but the deal fell through, and the county decided to solicit new bids.
Morningstar’s $45 million was the highest offer. And although the price is 15 percent lower, officials said it still makes more sense to sell the property.
Morningstar officials could not be reached for comment.
The deal between the county and Morningstar ensures Lake Creek will remain affordable rentals. Morningstar would have to keep rents affordable for people making 80 percent of the area median income for three years. If the company invests $1.5 million in the property, the rents could be raised to 85 percent of the area median income after three years, according to the agreement.
Staff Writer Chris Outcalt can be reached at 970-748-2931 or email@example.com.
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