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HomeMy WebLinkAboutCARIBOU APARTMENTS - PDP - 18-02A - MEDIA -www.coloradoan.com, The Coloradoan, Monday, February 17, 2003, BUSINESS E3 Apartments roll out&Comts in wake of vacancies By JULIE GORDON Jul ieGordon@coloradoan.com At Brookview Apartments, 1717 Welch Ave., one -bedroom apartments typically rent for $600 a month, two bedrooms for $700 and three bedrooms for $800. Now one- and two -bedrooms are $550 and three bedrooms are $650 when a six-month lease is signed. Faced with growing vacancy rates, many apartment complex- es, such as Brookview, are dis- counting their rents and offering other incentives to entice people to move in. As of the third quarter 2002, the apartment vacancy rate in Fort Collins was about 10 per- cent, according to the most re- cent Multifamily Housing Va- cancy & Rental Survey con- ducted by Gordon Von Stroh, professor of management at the University of Denver's Daniels College of Business. The average rent in the Fort Collins -Loveland area was $729.51. Apartment vacancies have in- creased because tenants are tak- ing advantage of historically low interest rates and buying homes rather than renting. Also, parents are purchasing homes for their Colorado State University students; people who have lost their jobs are leaving Fort Collins; there's excess sup- ply of apartments; and people are taking money out of the Coloradoan library APARTMENT HOME: Low interest rates have encouraged many resi- dents to buy a home rather than rent an apartment. Accordingly, many apartment complexes in Fort Collins are offering discounted rents to cope with their vacancies stock market and putting it into investment properties, said Lar- ry Kendall, chairman of The Group Inc. real estate. "It's a cascade effect almost and the ripples are finally reach- ing us," said Joe Seaman, presi- dent of the Fort Collins chapter of the Colorado Apartment As- sociation. "The market has done a 180 where people can now pick and choose where they want to go whereas before we had people knocking down our doors to move in because they didn't have anywhere else to go." Seaman said vacancies are the worst he's seen in the 10 years he's been in the apartment in- dustry. Currently, Brookview Apart- ments has a 15 percent vacancy rate; it's typically between 3 per- cent and 4 percent, community manager Debbie Carpenter said. This economy thing has hit us hard," she said. Brookview Apartments has not only discounted its rents but lowered its deposits from $300 to $200 and lowered the applica- tion fee from $20 to $5. "This is just a response and a temporary measure while the state of the current economy continues," Carpenter said. Rams Crossing,1117 City Park Ave., which is 7 percent vacant, is offering two months free rent on two bedroom units, said community manager Nicole Schuetz.Two bedrooms range in price from $775 to $825, includ- ing utilities. It's the first time in several years Rams Crossing has had to offer incentives, Schuetz said. "Because of our location, we've always had waiting lists," Schuetz said. "Now we're in dire need to keep up with other apartment specials around town. Students would rather get a four -bedroom (house) with friends and pay $200 each (per month) rather than get an apart- ment and have to pay $400 to $800 per month. Courtney Park Apartments, 4470 S. Lemay Ave., which has a 7 percent vacancy rate, is offer- ing the first month free on all units, said community manager Sarah Grismore. Rents range from $649 to $739 for one bed- rooms and from $749 to $869 for two bedrooms. "We're basically do doing what everybody else in the mar- ket is doing so we can remain full," Grismore said. ing $30 to $100 off monthly rent Courtney Park Apartments al- as well offering the third month so is waiving its $40 application of rent free for all two -bedroom fee, $99 deposit 0 admih- istrative fee, Grissaid. its, said president Ed Stoner. *expects the deal to last other "We wouldn't waive a deposit two months. unless other people were doing "It seems to be working pret- it," she said. ty well," he said. "We're less Fox Meadows Apartments, than 2 percent vacant." 3644 S. Timberline Road, which Rams Village Apartments, is 14 percent vacant, is offering 900 Constitution Ave., which is six weeks free rent on most 30 percent vacant, is not lower - units, said manager Ramona ing its rent or offering any other Kadlick incentives, said Jean Robbins, Most people want to spread marketing director of Topanga the six weeks out over the term Management, which owns the of their lease, which translates apartments. into a savings of between $100 Incentives were tried in the and $130 per month, depending past, but they didn't result in on the number of bedrooms in substantial decreases in the va- the apartment, Kadlick said. cancy rate, Robbins said. Fox Meadows also is waiving its $30 application fee for people Instead of offering incentives, Rams Village is improving cus- who sign on the e day th tomer service, Robbins said. are looking at an �tment an= Rams Village tries to respond F dropping the depo it from $35Mwto tenant concerns within 24 to $99 with approved credit, hours, she said. Kadlick said. Not only is more customer "It's been working, but it's service training being provided very slow going," she said. to staff, but Rams Village has Miramont Apartments, 4900 launched an 800-customer serv- Boardwalk Ave., which has 8 ice line that goes directly to percent vacancy, is offering one Topanga Management and a month free plus $100 off month- Web site on which residents can ly rent on select units on nine complete a satisfaction survey month to 12 month leases, said and submit maintenance re - community director Tillie quests.The idea is to keep cur- Archibald.Old Town Square rent tenants happy so they will Properties, 5 Old Town Square, tell their friends that it's a good which manages more than 200 place and get them to move in, apartments in Fort Collins, pri- Robbins said. marily in the southeast and "Our best marketing is our southwest part of the city, is tak- word of mouth," she said.