MONTROSE, Colo. — Construction is underway on The HUB Apartments, a 160-unit garden-style community in the Western Slope city.
NE Construction, the project's general contractor, said in an Oct. 1 announcement that the team broke ground in September. The first residents are expected to move in during fall 2028.
The project
The HUB is planned at 825 Cobble Drive in Montrose. The builder describes it as a Class A community and one of the first new luxury apartment projects in the Montrose market in years.
- 160 garden-style apartments
- 100 one-bedroom, one-bath units and 60 two-bedroom, two-bath units
- A resort-style pool, fitness center and clubhouse
- Design inspired by the mountain setting of the Uncompahgre Valley
The announcement didn't give rents, the number of buildings or stories, or the project's total cost.
The team
- Owner/developer: Leadership Circle and NE Development
- General contractor: NE Construction
- Architect: HEDK Architects
- Civil engineer: Del-Mont Consultants
An unnamed project representative quoted in the announcement said the group was excited to see "a project of this caliber coming to Montrose." The representative credited the team's early planning and focus on resolving issues before construction.
How it's financed
The HUB is financed through the Federal Housing Administration's Section 221(d)(4) program, which insures loans for new construction and substantial rehabilitation of multifamily rental housing. The loan amount and lender weren't disclosed.
The program is one of the most common long-term financing tools for new apartments, and it comes with terms that shape how a project gets built:
- One loan for construction and permanent financing. Interest-only payments during construction roll into a fully amortizing 40-year loan, at a fixed rate locked at closing.
- High leverage. Market-rate projects can borrow up to 87% of cost, according to lender program summaries.
- Non-recourse, with standard carve-out guarantees for the principals.
- Davis-Bacon prevailing wages apply to construction.
- HUD oversight during construction, including inspections and approval of draws and change orders.
The trade-off is time. HUD processing typically takes much longer than a conventional bank construction loan, which is one reason developers who use the program tend to plan well ahead.
Why Montrose
NE Construction described Montrose as a regional hub for healthcare, jobs and outdoor recreation, and said new rental housing has not kept up with that growth. The developers are targeting working professionals, families and retirees.
Analysis: Montrose serves as a retail and medical center for a wide stretch of western Colorado, and it draws retirees and newcomers with the outdoor access around the Black Canyon of the Gunnison, the San Juan Mountains and the Uncompahgre Plateau. That mix supports demand for professionally managed rentals. A larger garden-style project like The HUB adds a type of new housing the local market has had little of.
Why it matters for contractors
Analysis: For subcontractors, the HUD financing is the key detail. Davis-Bacon prevailing wage rules mean certified payroll, wage determinations and the compliance paperwork that comes with them. That can be new territory for Western Slope trades who mostly work on private, conventionally financed jobs.
HUD-insured projects also come with more structured draw and change-order processes, so subs should expect more documentation, and possibly longer payment cycles, than on a typical private job.
The upside is certainty. A 221(d)(4) loan is fully funded at closing, which lowers the risk that financing dries up mid-project. With roughly two years of work ahead before the first move-ins, The HUB should provide steady work for framing, roofing, MEP, drywall and finish trades in the Montrose area through 2028.