Multifamily Fundamentals Still Seducing Buyers
Colorado multifamily fundamentals are probably as strong as they've ever been—thus the extreme interest in the 1,206-unit Horizons at Rock Creek in Superior, which sold recently for about $250M. ARA Newmark executive managing director Shane Ozment tells us that no fewer than 20 competitive offers were made on the property, a strong showing considering that it was quietly marketed to a targeted group of qualified investors. NC-based Bell Partners prevailed, paying a record amount for a Colorado multifamily asset. Shane, along with colleague Terrance Hunt, repped seller Simpson Housing LLP.
Located in the Interlocken submarket, which Shane calls one of the strongest multifamily areas in metro Denver, Horizons at Rock Creek was 96% occupied at the time of sale. The Q1 apartment vacancy rate in the submarket was 3.69%, down from just under 5% a year earlier. Overall, the submarket absorbed nearly 1,500 units over the last four quarters, more than any other in metro Denver, according to ARA Newmark. Average rent has increased 10% since Q1 '14 to $1.41/SF.
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