A Texas real estate giant that develops projects worldwide and a California company with a strong Front Range presence plan suburban-style apartment complexes in Colorado Springs, which would add nearly 625 units in fast-growing parts of the city.

The projects are more signs that apartment developers and investors are focusing on Colorado Springs because of its booming population, desirable quality of life, strong demand for multifamily living and surge of Denver-area residents moving south for less expensive housing.

Those trends, in turn, translate to low vacancy rates and record-high rents — also attractive to developers and investors.

“All these factors are very desirable to apartment developers who see continued and perhaps undiscovered opportunity in Colorado Springs,” said Doug Carter, a veteran commercial real estate broker with SVN/Denver Commercial who co-publishes Apartment Insights, an industry report.

Another built-to-rent, single-family home community planned in Colorado Springs

Houston-based Hines, a 65-year-old global real estate investment firm that has a presence in 27 countries through ownership and development of office, industrial, retail and housing projects, plans to construct a seven-building, 275-unit apartment community on the Springs’ far northeast side, according to a proposal submitted to city officials.

The project, to be called Retreat at Mountainside, would be built on nearly 10 acres southwest of Briargate and Grand Cordera parkways, the proposal shows.

Retreat at Mountainside would be Hines’ first development in Colorado Springs, though not its first local real estate deal. In 2019, the company paid $93.2 million to buy the northside Promenade Shops at Briargate retail center, southeast of Briargate and Voyager parkways, El Paso County land records show.

Hines also has been active in the state since 1983 when it developed the 52-story Wells Fargo Center office tower in downtown Denver, and later the 40-story Optiv office building, also in the city’s urban core, among other projects.

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“The Colorado Springs market has seen significant growth over the last few years in terms of not only population, but also in the employment base expanding,” Hines said via email, in response to Gazette questions. “On top of that, Colorado Springs benefited from the increase in a ‘work from anywhere’ lifestyle that we have all witnessed over the last few years. We saw an opportunity in the residential space to develop a top-of-market product that represents Hines’ legacy of quality.”

The project site appealed to Hines because it’s part of a high-growth area, with mountain views and good access to other parts of town, the company said.

Owning the Promenade Shops at Briargate for three years, meanwhile, allowed the company to “further hone in on where the Hines brand fits in Colorado Springs,” the company’s email said. “Hines is known for developing and owning the highest quality properties at the best location within a market and this (apartment) site fits perfectly within that thesis.”

Retreat at Mountainside amenities would include a clubhouse, pool, courtyards and dog park. Some buildings also would have elevators and enclosed corridors that are heated and air conditioned, the company said in its email.

In a best-case scenario, Hines said it plans to start construction this year and open its first apartments toward the end of 2023. The company plans to charge market rate rents; in the fourth quarter of 2021, local rents averaged just over $1,470 a month, according to a University of Denver report.

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Meanwhile, Sares RegisGroup of Newport Beach, Calif., a nearly 30-year-old residential and commercial developer, plans to construct a seven-building, 348-unit apartment community on 14 acres southeast of Woodmen Road and Mohawk Drive, according to a proposal the company submitted to city officials. The site lies outside the Springs and the company will ask the city to annex the property.

The unnamed apartment project would be a first in the Springs for Sares Regis, which has been active in Colorado for more than 20 years.

The company recently opened a 203-unit apartment community in Centennial, plans a 380-unit project in downtown Denver and owns land outside Boulder, said Ted Featherstone, a company vice president of development. Sares Regis also has developed several apartment, office and industrial projects in California, its website shows.

“We like Colorado Springs for the same reason why a lot of others like Colorado Springs,” Featherstone said. “It’s a great place to live, there are a lot of opportunities, a lot of jobs, a lot of job growth, a lot of people moving in, and they need housing. Both people there today and people who are coming in. We want to be part of that.”

A pool and deck area, outdoor kitchen, firepit, dog park, gaming area and open space are among project amenities, Sares Regis’ proposal shows.

The company’s project also would rent at market rates; construction likely would start in early 2023, with the first units targeted to open in late 2024, Featherstone said.

The Hines and Sares Regis projects are in their initial stages and still need city regulatory approvals. The companies are seeking approval of conditional use permits, which would require them to show their projects won’t harm surrounding neighborhoods, will be consistent with local zoning goals and embrace the city’s Comprehensive Plan.