Turnkey Asset with Subsidized Rent Security & Upside

Palo Verde Apartments is backed by a 20-year Section 8 HAP contract signed in July 2023, offering reliable, government-guaranteed income with annual mark-to-market rent adjustments. This creates highly predictable cash flow and reduces risk of tenant default.

The property delivers strong financial performance, making it a compelling cash-flowing asset from day one. There is clear upside potential through interior renovations and operational improvements. Current HAP-supported rents remain below market, providing room for increases under HUD’s adjustment guidelines. Market comps suggest rents could grow meaningfully over time. With only 8 units—2 one-bedrooms and 6 two-bedrooms—the asset is easy to manage and well-located near major employers and schools in downtown Pueblo, a market benefiting from economic development and rising housing costs.

Strategic Location with Excellent Regional Access

Palo Verde Apartments are strategically located in Pueblo, Colorado, just one block off Highway 50, providing residents with excellent regional access. The property is situated within close proximity to key employment drivers, including Vestas Wind Systems, Parkview Medical Center, Ingersoll Rand, and Colorado State University Pueblo. These institutions contribute to a stable employment base and are a major draw for the city’s working-class and student populations. The area also offers lifestyle appeal, with more than 50 restaurants, businesses, and retail outlets within a three-mile radius, as well as nearby recreational attractions like Lake Pueblo State Park, the Historic Arkansas Riverwalk, and the Sangre de Cristo Arts Center.

Significant Discount to Home Ownership

Driven by its significant population and job growth, paired with a high quality of life that attracts transplants from across the country, Colorado has been named one of the country’s top performing housing markets. The average sale price of homes in Pueblo went up by over 35 percent between 2020 and 2024 and has gone up by 63 percent since 2017. Furthermore, Single-Family, Townhouse, and Condo sales within one mile of the Palo Verde Apartments in the last 365 days averaged $312,321, creating high barriers to home ownership in the area, where renting at the Baltimore Avenue Apartments is 58 percent less expensive than buying a home in the area. The Palo Verde Apartments are surrounded by strong area demographics that support future rent growth. As Colorado continues to attract residents seeking high-quality employment opportunities and a live-work-play lifestyle, home ownership will become increasingly unattainable.

Excellent Proximity to CSU Pueblo - An Educational and Employment Hub

Colorado State University Pueblo (CSU Pueblo) is more than just a regional public university—it’s a dynamic educational institution that playsa vital role in shaping Southern Colorado’s workforce, culture, and economy. The university has a strong relationship with the City of Pueblo, acting as a key employer and cultural anchor. CSU Pueblo students contribute to the local economy through housing, dining, and retail spending, while the university’s faculty and staff offer stability and upward mobility in the regional job market. For real estate investors, the combination of steady student demand and affordability makes Pueblo an attractive market for multifamily development.