Centerspace Acquires 420-Unit Loveland Apartment Community for $132 Million

Centerspace, a multifamily real estate investment trust founded in 1970, acquired Railway Flats in Loveland for $132.2 million during the third quarter of 2025, adding 420 apartment homes to its regional portfolio.

The acquisition at 2105 Hopper Lane in Loveland's Centerra district represents a per-unit price of approximately $314,762, placing the transaction at the high end of recent Northern Colorado apartment sales. The purchase included assumption of $76.5 million in existing mortgage debt.

Railway Flats opened a few years ago as a luxury apartment community offering studio, one-bedroom, two-bedroom and three-bedroom floor plans. Current market rents in Loveland range from approximately $1,465 for studios to above $2,300 for three-bedroom units, according to rental market data.

The company reported the acquisition as part of its third quarter financial results announced November 3. Centerspace also sold five apartment communities in St. Cloud, Minnesota during the same period for $124 million.

Company Reports Modest Rent Growth Across Portfolio

Centerspace reported blended lease rate growth of 1.3 percent during the third quarter across its same-store properties, combining new and renewal lease pricing. The year-to-date blended rate reached 1.6 percent through September 30, down from 2.1 percent during the same period in 2024.

The figures represent significantly slower rent increases compared to 2021-2023, when Northern Colorado apartment rents frequently rose 6 to 10 percent annually.

Renewal lease rates increased 2.9 percent during the quarter, while new lease rates declined 1.7 percent. The company maintained 95.8 percent occupancy across its portfolio during the third quarter.

Resident retention rates reached 59.9 percent for the quarter, meaning approximately 60 percent of tenants renewed their leases at expiration. The retention rate decreased slightly from 61.3 percent during the same quarter in 2024.

Minneapolis-Based REIT Operates Across Seven States

Centerspace owns 68 apartment communities totaling 12,941 homes across Colorado, Minnesota, Montana, Nebraska, North Dakota, South Dakota and Utah as of September 30. The company trades on the New York Stock Exchange under the ticker CSR and maintains headquarters in Minneapolis with corporate offices in Minot, North Dakota.

The real estate investment trust began operations in Minot in 1970 as Investors Real Estate Trust before rebranding to Centerspace. The company shifted its investment focus to Mountain West multifamily properties in the mid-2010s, actively expanding its Colorado holdings beginning around 2017.

Railway Flats represents Centerspace's continued investment in Larimer County's apartment market. The company operates as a market-rate apartment owner focused on middle-income and higher-end multifamily communities, according to company investor communications.

The acquisition did not include affordability requirements, workforce housing covenants or community benefit agreements as conditions of the purchase.

Financial Performance and Market Conditions

Centerspace reported third quarter net income of $3.19 per diluted share, compared to a net loss of $0.40 per share during the same period in 2024. The company's core funds from operations reached $1.19 per diluted share, increasing 0.8 percent from $1.18 the previous year.

Same-store revenues increased 2.4 percent year-over-year during the third quarter, while same-store operating expenses decreased 0.8 percent. The combination drove same-store net operating income growth of 4.5 percent compared to the prior year quarter.

The company updated its 2025 financial outlook, projecting same-store net operating income growth between 3.0 and 3.5 percent for the full year. Centerspace expects same-store revenue growth of 2.0 to 2.5 percent and same-store expense growth of 0.5 to 1.0 percent.

Centerspace repurchased 62,973 common shares during the third quarter for total consideration of $3.5 million at an average price of $54.86 per share. The company reported $200.4 million in total liquidity at quarter end, including $187.5 million available under credit lines and $12.9 million in cash.

The company maintains high institutional ownership, with approximately 88 percent of shares held by institutional investors as of recent disclosures. Centerspace has been named a top workplace by the Minneapolis Star Tribune for six consecutive years through 2025.