A sought-after Steamboat Springs apartment community sold for $24.8 million.
Capital Real Estate-Mountain Village LLC and CREMountain Village TIC I LLC purchased Mountain Village, a 103-unit community at 1101 Mountain Village Circle.
“It was probably one of the most competitive processes I’ve been a part of,” said Justin Hunt of Newmark Knight Frank Multifamily, noting there were 28 groups bidding on the community, which comprises a mix of 25% affordable units and 75% market units.
Hunt, alongside Andy Hellman of Newmark Knight Frank Multifamily, represented the seller, Steamboat Mountain Village LLC, in the transaction.
The level of interest in the asset was a result of a number of dynamics, including the opportunity to convert the asset into market-rate units in the future, current market factors in Steamboat Springs and the quality of the asset.
“It is good quality construction with a good configuration and low density in an extremely supply constrained market,” added Hunt, noting that this level of interest is common in resort areas due to the challenge of making the numbers of developing in these communities work.
Additionally, Mountain Village’s 75% market-rate units makes it the largest marketrate apartment community in Steamboat Springs; there are only three other multifamily properties within a 5-mile radius of the community; and the average price of a single-family home in Steamboat Springs is $805,000, a townhome is $643,000 and a condominium is $411,000, according to Newmark.
At the time of the sale, Mountain Village had occupancy in the high 90% range.
Built in 1995, Mountain Village consists of 13 two-story buildings with one-, two- and three-bedroom floor plans. Apartments feature full-size washers and dryers, private balconies and entrances, picture windows, private outdoor storage space and all units are corner units. The affordable units are dedicated to those earning 50% area median income.
The community includes 40 detached garages and open parking spaces, a playground, garage parking, on-site management, a courtyard park with barbecue grills and picnic tables.
The buyer plans to maintain the affordability component of Mountain Village and operate the community as-is.