Vail Valley housing deal delayed
Vail Valley, CO Colorado
VAIL VALLEY, Colorado ” The deadline for Morningstar Mountain Properties to decide whether to buy the Lake Creek Village apartments in Edwards, Colorado and get funding for the project will likely be extended, officials said.
The county commissioners approved a non-binding letter of intent to sell the apartment complex at the beginning of April for $45 million.
The agreement included a 45-day diligence period, which Housing Director Alex Potente described as “time for them to do their work on the property to see if they want to purchase it and to get underwriting on the loan.”
The deadline will likely be extended another couple weeks, Potente said.
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.