FRESH PLANS TAKE SHAPE FOR HIGH-PROFILE INTERCHANGE ON I-25
A long-dormant frontage of Interstate 25 in Fort Collins may soon emerge as a hotbed of new housing and commercial activity in Northern Colorado.
According to plans filed with the city of Fort Collins planning office, developers have sketched out a proposal to build a mixed-use project at the northeast corner of I-25 and Prospect Road. The 115-acre site, located between I-25 and the new Timnath Middle-High School grounds, is targeted for 316 homes, a convenience store with fuel pumps, a drive-through restaurant, nearly 90,000 square feet of commercial space, industrial buildings, and storage units.
The housing portion of the project would be divided between 32 single-family homes, 102 townhomes, and 182 multi-family units. The multi-family units would be built above ground-floor retail and office space, totaling 88,600 square feet.
As the availability of development ground in the Fort Collins area has been shrinking in recent years, the Prospect-I-25 proposal stands to provide a needed boost to the local housing supply.
Despite significant commercial development along I-25 in Northern Colorado over the past 30 years, activity at the Prospect-I-25 site has been on hold while waiting for necessary infrastructure improvements. The land was first approved for development in 1996.
Recent upgrades to stormwater facilities in the area have removed the ground from 100-year floodplain status, making it more suitable for development. Ongoing improvements to I-25 and the interchange are also likely to benefit the development by helping traffic flow more smoothly in the vicinity.
Call me for additional information regarding updates on new developments.
STOP WAITING: MORTGAGE RATES HAVE LIKELY SETTLED IN
Almost from the moment that rates on 30-year fixed mortgages pushed past the 6 percent threshold in June of 2022, the conversation started: “Sit tight. The rates will come back down.”
Well over a year later, it seems like mortgage rates have put down roots in the neighborhood of 6.5 percent. For would-be homebuyers who have been crossing their fingers to see a retreat back below 6 percent – and maybe also watched as an ideal property was snatched up by someone else – it’s time to re-set expectations.
Waiting for sub-6 percent rates could mean waiting for a long time.
The reality is that mortgage rates have been stable since last summer. For those who have been waiting for the right moment, it’s time to shift the focus away from what mortgage rates may or may not do next, and toward finding the right house for you and your lifestyle. That approach is even more important at a time when housing inventory continues to be slim across Northern Colorado, and is not likely to loosen in the near future.
By acting now, you can win no matter how mortgage rates move. If rates do eventually trend down, then you can take advantage of refinancing to a lower rate. But if they move up – a possibility that can’t be ignored – then you can feel good that you beat the buzzer. As central banks such as the Federal Reserve and the Bank of England continue to keep a tight grip on monetary policy to battle inflation, their actions have the potential to put upward pressure on mortgage rates.
Call me to learn more about your options.
APPLE DEAL KEEPS BROADCOM COOKING IN FORT COLLINS
Jobs are the anchor of any local real estate market. Which makes the latest news from high-tech giant Apple a slice of good news for the Northern Colorado housing market.
Apple recently issued a formal announcement that it’s committed to buying specialty components for its globally popular iPhone from U.S.-based manufacturer Broadcom for the foreseeable future. The deal includes custom radio frequency components made at Broadcom’s Fort Collins facility, where Broadcom employs about 1,100 people.
In its statement, Apple said it was spending about $430 billion on U.S.-built parts, including those from Broadcom. The deal with Broadcom started taking effect in 2021. The parts made in Fort Collins enable 5G capabilities in the iPhone.
The Fort Collins Broadcom operation is located in a portion of the original Hewlett-Packard complex, located at the intersection of Harmony and Ziegler roads in southeast Fort Collins.
Earlier this year, we asked planning departments in several Northern Colorado communities about development trends and local priorities. In the third of a series, we feature responses from Loveland Current Planning Director Bob Paulsen. His comments were edited for length and clarity.
LOVELAND: A FOCUS ON DELIVERING HOUSING OPPORTUNITIES
What are your city’s current priorities or focus areas of impact?
Loveland aims to provide affordable and attainable housing options. The private-sector-initiated Affordable Housing Task Force works with City Council and city staff to facilitate the creation of housing opportunities. With that in mind, city staff has crafted housing amendments to the city code, which will go to public hearings this summer. They include:
- New incentives for affordable, deed-restricted housing, such as density bonuses for developers that can be approved at the administrative level.
- Incentives for developers to create housing diversity within existing Planned Unit Developments, which can allow for additional housing units.
- Adjustments to standards for housing dimensions that reflect the market trend toward smaller lot sizes.
Meanwhile, downtown redevelopment is an ongoing priority. Notable downtown projects include:
- The 5-story, mixed-use, Draper project on 4th Street and Lincoln Avenue. It includes 96 housing units and an associated parking structure.
- The Collection condominium, which is a redevelopment of the former Larimer County building on 7th and Lincoln streets.
- The City of Loveland has also launched a downtown parking study, and a redesign of several blocks of the 4th Street streetscape is now under evaluation.
How has residential development changed and what are some notable projects to look for?
Development interest is occurring in all four quadrants of the city. New projects are following trends toward smaller lots, delivering a variety of housing types, and providing amenities such as interconnected trail systems, community parks, and facilities for gathering. One emerging trend is rental neighborhoods that include single-family detached and/or attached units.
Some examples of significant residential projects under development include:
- Centerra South. A 140-acre mixed-use project located along East Highway 34. It’s slated to include a specialty grocer, retail, office, and hotel, along with over 1,000 residential units. The 450-unit Chilson Apartments is adjacent to Centerra South.
- Kinston. A master-planned community in east Loveland that covers over 600 acres and includes plans for nearly 3,000 units.
- Sugar Creek. A mixed-use, 171-acre project in north-central Loveland. It’s seeking initial entitlement approvals for 1,100 residential units, as well as two commercial nodes along the east side of Highway 287 at the future extension of 65th Street.
- South Village, with 560 units projected, is at the southwest corner of 14th Street and Highway 287. It’s among several projects in the planning phase. South Village includes plans for single-family, multi-family and commercial that will wrap around the intersection of 14th Street and 287. Well over 1,000 additional units are planned in areas south of 14th St., aka Hwy. 402.
Any final thoughts?
With the advent of a new water booster station under construction by the City of Loveland, there is the expectation of new development occurring in the next several years. Over 1,000 additional acres of residential property in northwest Loveland on the west side of Wilson have been entitled.
The Group Real Estate’s “GroupGives Back Day” brought together 80 volunteers who dedicated over 200 hours of their time to serve the communities they support. The volunteers made a positive impact working on various initiatives like home renovation projects, donation drives, community outreach, and more. Their efforts not only strengthened local organizations and charities, but also left a lasting impression on the lives of individuals in need.
REAL ESTATE BY NUMBERS
- 66 percent. Rate of population growth for Keenesburg, located in southeast Weld County between July 1, 2020, and July 1, 2022, according to recent U.S. Census estimates. Keenesburg ranked No. 1 in Colorado for percentage growth in that period. Timnath was No. 2 at 37.8 percent.
- 171. Acreage that developers want to annex into the city of Loveland for a future housing development in northeast Loveland. As planned, the proposed Sugar Creek addition would include about 1,100 homes, including single-family, duplex, townhome, and multi-family units.
- $27.33 million. Total sale price for the former Outlets of Loveland in east Loveland. The new owners, Windsor-based Schuman Cos. Inc., have renamed the property Loveland Yards. The 340,800-square-foot facility includes office and retail space.
- 23. Where Fort Collins ranks on the U.S. News & World Report’s annual list of “Best Places to Live” in the United States. Boulder ranks No. 4 and Colorado Springs ranks No. 9.
- $274,000. Average amount of equity that a homeowner in the United States holds as of the first quarter of 2023, down approximately $5,400 per homeowner from the first quarter of 2022, according to data from CoreLogic
- $539,000. Median sale price for a home in Colorado during May, down 3 percent from May 2022, according to the Colorado Association of Realtors. The median number of days that a house in Colorado was on the market before it sold was 39 for May, up from 22 days in May 2022.
- 60,000. The approximate square footage of a new office addition for JBS USA Food Co. The meatpacking company would add to its headquarters in west Greeley, based on paperwork it recently shared with the city of Greeley’s planning department.
- 2,700. Acreage that BNSF Railway Co. plans to develop in Weld County, on a site located southeast of Fort Lupton – roughly between Hudson and Lochbuie. The railroad company is proposing an intermodal facility, meaning a location where freight is moved between trucks and rail cars.
- $75.15 million. Sale price for the Greens at Van de Water, a 252-unit apartment complex located at 2900-3040 Mountain Lion Drive in east Loveland. The complex, built in 2011 and including nine apartment buildings, was acquired by a California-based investor.
- 9 percent. Percentage of all housing sales in the United States during the first quarter of 2023 that were “flips” – when homeowner intentionally sells after a brief period of time to make a profit, typically after making repairs that add to the value. Flips represented 9.4 percent of sales during the first quarter of 2022.
- 80 percent. Approximate share of all homeowners with a mortgage in the United States who hold a 30-year loan with an interest rate below 5 percent, according to Redfin. The weekly average rate for a 30-year loan as of June 20 was 6.7 percent.
- 22. Median number of days that a home in the United States was on the market before it sold during April, up from 17 days in April 2022, according to the National Association of Realtors.
- $484 billion. Estimated investments that American homeowners will make in improvement and repair projects in 2023, up from $471 billion in 2022, according to a report by Harvard University’s Joint Center for Housing Studies.
- $7.75 million. Sale price for a 39,435-square-foot flex-industrial building located in the Colorado Technology Center business park in Louisville.