Take a look at this rare off-market opportunity to participate in the investment of an iconic 25-unit apartment building in the heart of Jefferson Park - arguably one of Denver's most established and sought-after neighborhoods. The property is one of the last non-renovated buildings in the area, offering high upside through a substantial reposition strategy in an irreplaceable location. The property offers its residents a short walk & bike ride to Broncos Stadium, Lower Highlands, Highlands Square, and Downtown Denver.
They property has been owned and operated by a mom-and-pop owner for over 3 decades and in recent years has allowed the property to fall in complete disrepair and operating at a high vacancy. Lacking pride of ownership, extremely poor management, and deferred maintenance, the property needs a substantial capital infusion to bring it up to code and quality the location deserves and demands. The Sponsor is planning to commit in excess of $900,000 to renovate the building and ultimately deliver a high-quality, centrally located building that will offer some of the most affordable rents in urban Denver.
Apartment demand in Denver exhibited a significant turnaround in momentum in 2nd quarter 2021, with annual absorption of roughly 8,800 units nearing the levels seen before the impact of the pandemic last spring.
Demand for 44534 units in 2021’s 2nd quarter was more than double the level seen during the April to June timeframe during 2020.
The average occupancy rate in the Denver metro apartment market reached 93.6% in the second quarter of 2021. The extremely strong occupancy levels during the pandemic are excepted to mitigate a portion of the negative impacts related to COVID-19.
Denver has received elevated levels of new supply since 2017 as developers and investors have sought to tap into the long-term potential of the market’s strong underlying demand drivers. Over the past year, a total of 6,169 units completed, but completions are scheduled to ramp up to 10,463 units over the next four quarters. Those scheduled completions represent about 60% of the roughly 17,600 units under construction across the Denver area at the end of the 2nd quarter.
The 2nd quarter 2021 occupancy rate of 95.6% was above the five-year average (94.8%) and up 1.0 point from the prior year.