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A 120-unit apartment building in Golden, Colorado, traded hands for $62M late last week, according to Jefferson County property records.
Chicago-based Draper and Kramer purchased the property at 1175 Newstar Way on Wednesday from Denver-based Forum Investment Group.
The Denver Business Journal first reported the sale.
This isn’t Draper and Kramer’s first Denver metro purchase, although it is expected to be its last until multifamily market conditions improve, the company told the DBJ.
The Mile High City is experiencing an oversupply of newly built apartment units, which has created a strong renter’s market and led rent prices to fall 3.5% year-over-year. Nationally, the multifamily market is shifting and is no longer real estate’s “golden child” due to oversupply and an increase in borrowing costs.
While oversupply is an issue nationwide, Denver is also combating negative headlines calling it “America’s Emptiest Downtown” and claiming it has the slowest return-to-office rate in the U.S.
Draper and Kramer Chief Investment Officer Blas Puzon told the DBJ that Denver’s recovery is behind other markets, adding that the city’s regulatory environment has hindered the area’s apartment market.
Property and financial services company Draper and Kramer owns two other Denver metro properties, Tempo Nine Mile in Aurora and The Wright in Centennial, according to its website. Draper and Kramer also has properties in Chicago, Austin, Dallas-Fort Worth, Phoenix and St. Louis.
A few weeks ago, the company purchased a 268-unit luxury apartment building in a northern Chicago suburb for $126M. It was one of the biggest price tags for a suburban Chicago-area apartment building ever, Bisnow previously reported.
Forum Investment Group purchased the Golden property in 2017 for $3M, Jefferson County records show, and later developed the apartment complex, called Epoque.
Epoque units range from a 590 SF studio to a 1,660 SF three-bedroom, three-bathroom apartment. The complex features a slew of amenities, including a game room, community garden, fitness center and outdoor lap pool.
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