Five apartment complexes from Wheat Ridge, Arvada and Golden were part of a massive, two-transaction sale totaling $22.7 million. Transwestern, a …
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Five apartment complexes from Wheat Ridge, Arvada and Golden were part of a massive, two-transaction sale totaling $22.7 million. Transwestern, a real estate firm with 33 offices in the United States, brokered the transactions and announced the sales Feb. 18.
In one sale, Wheat Ridge Gardens in Wheat Ridge and Golden Arms and Miner’s Mesa in Golden, were sold by the Faber Family Partnership to Agin Properties and Investment for $9.1 million. In the second sale, a private family partnership purchased two complexes in Arvada, The Flats at Sky Village and the Reserve at Oak Park, for $13.6 million. There are a total of 271 units among the five properties.
These transactions are evidence of promising trends in Denver’s renting market, according to Transwestern’s press release. It added that Denver features historically low purchase money debt and consistent annual rent growth exceeding 4 percent. Steven Rahe, the senior vice president of the Multi Housing Investment Group for Transwestern, said he believes the increase in renters and apartment rent is due to economic recovery.
“Following the horrible national economy in 2009 and 2010, we had substantial rent growth in Denver metro apartments in 2011 and 2012,” Rahe said. “Some of the residents who had been doubling up in apartments were now signing leases on their own.”
Another factor may be the steady increase in Denver’s metropolitan population. According to metrodenver.org, Denver’s metro population growth has outpaced the nation since 1930. The metro population is currently around 2.9 million and the expectation is that it will exceed 3.2 million by 2020. Naturally, this means more business for Denver’s suburbs as well.
Rahe highlighted Golden’s high occupancy rate and Wheat Ridge’s low turnover rate as reasons why owners are attracted these locations in particular.
“Golden has long been considered an excellent submarket to own apartments,” Rahe said. “Occupancy is generally high – partly thanks to the proximity to the School of Mines and Coors ... Wheat Ridge is a popular place to live due to the access to the mountains, downtown, and the west side office market.”
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