Colorado Springs Community Changes Hands
The sale took place amid ongoing population increases and a slowdown of new product deliveries in the city.
NALS Apartment Homes has acquired Upland Flats, a 300-unit multifamily community in Colorado Springs, Colo. Thompson Thrift was the property’s previous owner and developer.
The participants did not specify a sales price for the asset, but the construction loan associated with development totaled $51.6 million, according to Yardi Matrix. Equity for the development was provided by the Watermark 2021 Multifamily Development Fund III LP.
Thompson Thrift completed Upland Flats in 2023 and it is now 90.3 percent occupied, according to Yardi Matrix data. Upland Flats includes one-, two- and three-bedroom units averaging approximately 1,000 square feet. Average rent at the property started at $2,019 a month in 2023, but has slipped to $1,891 a month as of 2025.
Units include bar kitchens with granite or quartz countertops and tile backsplashes, microwaves, stainless steel appliances and designer light fixtures. The residences will also include walk-in closets and oval-shaped garden tubs, in addition to full-sized washers and dryers.
Common-area amenities include clubhouses, a 24-hour fitness center a business center, community gardens, bark parks and dog spas. The nine-building community is on 15.5 acres at the intersection of Marksheffel Road and Constitution Avenue in the Colorado city, which is about 70 miles south of Denver.
Matt Barnett, Dan Woodward, Jake Young and Dave Potarf of Walker & Dunlop brokered the sale. In a statement, Potarf characterized Colorado Springs as having strong fundamentals, including positive demographic trends, solid job growth and a favorable business climate. Colorado Springs’ population increased by 2.89 percent since the most recent Census in 2020, which put the local population at more than 480,300 people.
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Thompson Thrift is an active developer nationwide. Recently the company closed on the Thompson Thrift 2025 Multifamily Development, L.P., which raised more than $255 million in total capital commitments. The funds will be used to develop a portfolio of geographically diverse communities.
Slowing development in Colorado Springs
Upland Flats was part of a wave of development in Colorado Springs in recent years that is now tapering off. Supply expansion in 2024 reached record levels, with the completion of over 6,000 units, according to MMG Real Estate Advisors, but completions are set to decline in 2025. Fewer than 1,000 units will be completed this year.
As development slows, average occupancy in the market will edge upward, MMG notes. As of Q4 2024, occupancy of Colorado Springs multifamily came in at 91.7 percent. At the end of 2025, that rate is forecast to be 92 percent.
Absorption will slow down, though still be above the 10-year annual net absorption of 1,072 units. Some 3,674 units were absorbed in 2024, a figure that is expected to drop to 2,505 units by the end of this year.
