‘Built-to-Rent’ Homes Coming to Northeast Colorado Springs | Content reserved for subscribers
One of the hottest real estate trends in the country is in the Pikes Peak area.
Continental Propertiesa Wisconsin residential and commercial developer, plans to build 123 single-family homes on the city’s northeast side as rental properties, according to a recent proposal from company officials submitted to city government officials.
The project, planned on nearly 12 acres southeast of Woodmen and Templeton Gap roads, would be one of the first “built-to-let” communities in the area, in which single-family detached homes are built for the express purpose of rent as if they are apartments.
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This trend has gained popularity nationwide among renters who want the maintenance-free lifestyle and conveniences that come with apartment living, but also want the larger spaces and privacy that single-family homes offer, according to news articles and real estate industry publications.
A January report by RentCafea national online rental service, said a record 6,740 single-family homes were built solely as rental units in 2021, and estimated that number would double to nearly 14,000 homes built for rental This year.
Continental Properties, based in suburban Milwaukee, has been active in Colorado Springs for several years.
The company developed the Briargate Crossing shopping center anchored at SuperTarget, near Powers and Union Boulevards in the far northeast.
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Continental also developed the 280-unit Springs at Allison Valley and 264-unit Springs at Foothills Farms apartment complexes in InterQuest’s North Zone. Last year, he opened Springs at Northgate, a 240-unit apartment project in Polaris Pointe, a few miles north of InterQuest.
Now, Continental has set its sights on a built-to-let community in the Springs, which will be called Avanterra. Continental announced in December that it was adding the Avanterra brand of single-family rental homes to its line of housing products; the company opened its first Avanterra community west of Chicago that month.
The company said by email that its research identified Colorado Springs as an attractive market for an Avantterra community due to strong job growth, economic expansion and demand for single-family rental homes. .
The location southeast of Woodmen and Templeton Gap is close to major employers and amenities that will serve Avantterra residents. The project site is east of St. Francis Medical Center and numerous stores, malls and restaurants along nearby Powers Boulevard.
Continental’s Avanterra community would offer 23 one-bedroom homes, 37 two-bedroom homes and 63 three- to four-bedroom homes, according to its proposal submitted to municipal authorities.
The homes would have “open-concept layouts with large gourmet kitchens, private outdoor spaces, driveway and garage, and abundant storage,” the company said via email.
Tenants would also have maintenance-free living and access to amenities including a swimming pool, 24-hour fitness center, clubhouse and off-leash dog park with a pet spa, the company said. .
“This is an effort to meet the needs of the growing population of people who prefer the aforementioned benefits that single-family rental offers, such as access to updated finishes, maintenance-free living, shared luxuries and local living flexibility without being tied to a mortgage,” according to the company’s email.
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Monthly rents have not been set, the company said; leases of 12 to 15 months would be offered. Residents would not pay maintenance fees.
As expected, Continental plans to launch construction in the summer, its proposal to city shows.
Although the concept of building to rent is relatively new in Colorado Springs, the desire for rental single-family homes has existed for many years.
In addition to tenants who want more space and privacy, some potential buyers can’t qualify for a mortgage or pay a down payment.
Instead, they rent homes, many of which are owned by mom-and-pop landlords and investors; More and more single-family homes have been purchased in recent years by large corporations and institutional investors, who buy them with the intention of renting them out.
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Online searches show hundreds of homes for rent in and around Colorado Springs. And in today’s hot housing market, where demand is high and supply is tight, rental homes typically fetch monthly rents in the thousands of dollars, depending on their size and location.
For example, on Trulia, a national online real estate service, the cheapest home listed for rent Wednesday in the Springs area was listed at $1,045 a month. The one-bedroom, one-bathroom home is in the central part of town.
Many rental homes featured on Trulia’s website are over $2,000 and $3,000 per month. A 4,000 square foot furnished house on the east side of town, with four bedrooms and three bathrooms, was the most expensive at $6,500 a month.
By comparison, apartments averaged about $1,470 a month in the fourth quarter of last year, according to a recent report from the University of Denver.