Olympus Property, a real estate investment firm based in Fort Worth, Texas, has expanded its presence in Durango, Colorado, by purchasing the Confluence at Three Springs apartment complex. This marks the company's second major acquisition in the city, signaling growing investor interest in Durango's housing market.
The 171-unit property, located near Mercy Hospital, has been renamed Olympus at Three Springs. The acquisition comes as local housing costs continue to be a significant concern for residents, raising questions about the affordability of rental units under the new ownership.
Key Takeaways
- Olympus Property, a Texas-based firm, has acquired the 171-unit Confluence at Three Springs apartment complex in Durango.
- The property has been renamed Olympus at Three Springs and is the firm's second major purchase in the city, following the acquisition of Rocket Pointe apartments in 2021.
- Current listed rents at the complex range from $1,720 to $2,261 per month, a substantial increase from its original 2016 pricing.
- The company has described the property as an "attainable housing option" despite rent levels that challenge local income averages.
A Growing Portfolio in Southwest Colorado
Olympus Property has finalized its purchase of the apartment community at 150 Confluence Ave. This is the second multifamily property in Durango to be added to the firm's portfolio, which spans 17 states. Their first local investment was the 2021 purchase of the Rocket Pointe apartments, a 194-unit complex on Escalante Drive.
The newly acquired three-story building, now known as Olympus at Three Springs, includes ground-floor retail space. One current tenant is the Taco Boy restaurant. The company has not yet commented on the status of existing commercial leases under the new management.
The property has changed hands multiple times since it first opened. Originally developed by GF Properties Group, a Southern Ute Growth Fund entity, it welcomed its first tenants in 2017. It was later sold to Denver-based Trailbreak Partners in 2020 for $35.25 million before this latest acquisition by Olympus Property.
Strategic Investment in a High-Barrier Market
Company officials have highlighted Durango's economic conditions as a key driver for the investment. John Vu, director of acquisitions at Olympus Property, cited the city's "healthy supply-demand fundamentals" and "strong rent-to-income dynamics" as attractive factors.
"The acquisition of Confluence reflects our strategic interest in high-barrier, high-quality markets where our local presence and operational depth position us to deliver durable results," Vu stated.
The location of the complex is considered a significant asset. Its proximity to major employers like Mercy Hospital and Fort Lewis College makes it a prime location for professionals and students. The planned Mesa Park development, expected to be completed in 2027 with a music venue and expanded trail network, is also anticipated to increase the area's appeal.
Durango's Economic Landscape
Durango's economy relies heavily on tourism, recreation, and services. The city's scenic location and outdoor amenities draw investment, but also contribute to a high cost of living. The median home value in the area exceeds $730,000, creating a substantial barrier to homeownership for many local workers and pushing more residents into the rental market.
Olympus noted that these factors, combined with ongoing public and private investment, make the property an ideal long-term holding for its portfolio.
The Question of Affordability
A central point of discussion surrounding the sale is the cost of rent. While Olympus Property has labeled the complex an "attainable housing option," current prices present a challenge for many local residents. As of this week, the property's website lists monthly rents for its units, which range from 676 to 1,031 square feet, between $1,720 and $2,261.
This represents a significant increase over time. When the complex first opened in 2016, a one-bedroom unit was advertised starting at $899 per month, with two-bedroom units starting at $1,199.
Local Wages vs. Housing Costs
According to the MIT living wage calculator, a single individual with no children in La Plata County needs to earn $25.24 per hour to meet basic living expenses. Meanwhile, 2024 data from the Region 9 Economic Development District of Southwest Colorado shows that the average annual income for service sector jobs, which make up 44% of employment in Durango, is approximately $28,782. The average wage across all industries is around $59,500 per year.
In its announcement, Olympus pointed to a "substantial affordability gap" in Durango, noting that renters have a monthly cost advantage of over $4,000 compared to homeowners. The company also highlighted a 19% rent-to-income ratio at the property, reinforcing its position as a viable option in a difficult market.
A Pattern of Rising Rents
The rent increases at Olympus at Three Springs are consistent with trends seen at the company's other Durango property. At the 194-unit Rocket Pointe complex, monthly rents for one- and two-bedroom apartments now range from approximately $1,800 to $3,000.
Before Olympus acquired the property, rents at Rocket Pointe started at $1,225 for one-bedroom units and $1,640 for two-bedroom units when it opened in 2019. The steady rise in rental prices at both properties reflects the broader pressures within Durango's housing market, where demand continues to outpace supply.
Olympus Property did not disclose the purchase price for Olympus at Three Springs and declined to comment on future rent adjustments or plans for further acquisitions in the Durango area.
