Contractors are putting finishing touches on the first of four buildings at Basecamp. Others, including the one above, are in various stages of construction and expected to be finished by late summer. (Rhiannon Bergman/Montrose Daily Press)
A handful of tenants have already moved into the first of 96 apartment units to hit the market from Basecamp, a new complex on the Colorado Outdoors campus comprising four 24-unit buildings.
Ten units from the first building went up for lease between the end of February and the beginning of March, and they've already been snapped up. Monthly rent starts at $1,585 for a one-bedroom and $2,050 for a two-bedroom, though some units cost up to 10% more due to favorable characteristics like views of the Uncompahgre River.
Another 14 apartments from the same building will be available later this month, potentially as early as next week, according to Blueline Equity Partners Asset Manager Angie Larsen.
The Denver-based company bought the project from Basecamp’s previous owners, Range Development, for $33.5 million in January, according to its website.
Founding Partner Morgan Reynolds said the company likes holding properties in mountain areas and was attracted to the Montrose development because it’s located in an “opportunity zone,” which is an area certified by the U.S. Department of the Treasury where investors can earn tax incentives for development.
There are a handful of these zones in Montrose County, including parts of the city near the airport, downtown, and within Colorado Outdoors.
“In the broadest sense, the Opportunity Zone designation is a federal tax incentive to invest in low-income urban and rural communities through the favorable treatment of reinvested capital gains and forgiveness of tax on new capital gains,” the city’s website explains. “The incentive is a deferral, reduction, and potential elimination of certain federal capital gains taxes.”
The building is managed by Griffis Blessing, which is based in Colorado Springs.
Scott Kirkwood, the company’s regional vice president, said there has been a lot of interest in the units, and they’ve been filled up as they hit the market.
Seven renters have already moved in, and one of the first 10 leases went to a local family. Some of the other new tenants came from out-of-state to work at Black Canyon of the Gunnison National Park.
Kirkwood said the company is hoping to cast a “broad regional net” and attract locals, as well as employees from companies in Gunnison, Telluride and Grand Junction, to live in the apartments.
He said remote workers are another target market, and one draw for this group is the 500 MB internet service included in the rent. The units themselves feature a kitchen with electric appliances, walk-in closets, balconies and washers and dryers.
With a price point starting at $1,585 per month, rent would cost just under 30% of one month’s gross salary for an individual earning Montrose County’s 2022 area median income of $57,600. The Colorado Housing and Finance Authority guidelines suggest households spend no more than 30% of their income on rent or mortgage, with those who do considered rent-burdened.
Reynolds said while the apartments may not be considered workforce or affordable housing with these rents, there is a market for them among many people who wish to work or live in Montrose. He noted that Blueline bought the property after the design was complete and construction was well underway.
He said staff intend to reach out to large local and regional employers to start making connections and discuss the housing options, as the other three buildings, with 24 units each, are poised to hit the market toward the end of the summer.
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