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The Source in River North/RiNo.

Should you be buying Denver Investment Properties in Denver’s River North/RiNo?

Denver, Colorado’s River North neighborhood (commonly known as ‘RiNo’) is rapidly becoming the art district hotspot for all types of trendy creative to live, work, and play. Just north of downtown, embracing an industrial vibe, this neighborhood not only acts as the city’s artistic hub filled with must-see art galleries, but it also is filled with top ranking restaurants, brewpubs, and cafes.

In just the past decade, RiNo has transformed from a desolate warehouse and run-down auto repair area to a chic, artistic community with apartment complexes and renovations creating space for well over 3,000 residential units in the neighborhood (land value jumping from $6 per square foot to $50 per square foot in just 12 years). In August 2013, The Source, an indoor market filled with craft beer, wine, coffee, cheese, meats, spirits, artisan bread merchants and more opened in an old iron foundry. This outdoor market brought with it a popularity that has sparked the promise of construction for two new light-rail stations will be open in 2016 at 38th and Blake and at the National Western Stock Show site.

It’s easy to see why young urbanites and creative professionals seek out apartments and condos in the area, but RiNo is also on the verge of become a hot place to live for young families with kids, a demographic which Zepplin Development feels has been overlooked.

Zepplin Development has been a main developer in the RiNo neighborhood, kicking off with TAXI, a residential and creative business mixed-use community, which embodies the unusual and artistic vibe that has brought this neighborhood back to life. Now, their sights are set on creating a residential project for young parents and their kids.

It’s no secret that Denver investment properties are booming, but for the most part it seems developers have been mainly targeting young professionals or early retirees and empty nesters. This leaves little for young families with children who want to remain in the urban area, but cannot afford the limited housing options for their needs.

As part of the TAXI campus, father-son team Mickey and Kyle Zepplin is working on opening the 48-unit Freight Residences, which will offer flexible living spaces meant for families, complete with a shared “front lawn” courtyard area, an indoor kids’ art room, exercise and swimming center, and TAXI’s early-childhood education center.

With construction completion expected in Spring 2015, RiNo is truly becoming a more-than-ever desirable neighborhood.

If you’re interested in finding properties to buy or invest in the River North Arts District of Denver, call or email Brian MacMillan today:

 

Let's Chat

I've been helping investors with developments, flips, scrapes, buy and hold cash flowing apartment buildings/homes/condos since 2001. Give me a call at 720-938-4350 to chat, or shoot me an email at BrianMacMillan@Mac.com.

Or feel free to search the properties for sale in the Front Range.

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Just Listed: Unique Denver Investment/Development Project

Just Listed: 4119 Navajo Street, Denver 80211

List Price: 350k

My latest Denver Investment Property for sale is located in NW Denver, near the Highlands & Sunnyside areas.  What makes this Denver development project unique is that only half of a duplex is standing on the property.  The lot is zoned U-TU-C, which means two units can be built on the property.  Currently, the half duplex that is standing has been gutted, both the electrical and plumbing have been completely re-done, the floor plan has been opened up, and new framing exists.  Permits are valid and ready for another developer to take the project over, finish the existing structure, as well connect and build a brand new half duplex from the foundation up.  City of Denver construction permits are taking roughly 5-6 months to push through currently, which makes this project very enticing to be able to start construction immediately.

Most Denver duplex development projects are netting investors an average of 150k profit.  This project falls within that scope; however, with a severe lack of inventory and prices rising quickly, I’m projecting proceeds to be around 200k on this Denver infill lot for sale.

If you’d like to take a tour of the existing structure, view current permits, or the architectural renderings, please contact me for an appointment .

Happy Fourth of July weekend!

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Let's Chat

I've been helping investors with developments, flips, scrapes, buy and hold cash flowing apartment buildings/homes/condos since 2001. Give me a call at 720-938-4350 to chat, or shoot me an email at BrianMacMillan@Mac.com.

Or feel free to search the properties for sale in the Front Range.

Denver Investment Properties: 2013 Review

I wrote a post toward the beginning of the year about Denver Investment Properties 2013 outlook, so let’s take a quick look about how 2013 actually wrapped up with apartment vacancy and rent.

Vacancy Rate: Ending Fourth Quarter, we saw a slight vacancy rise to 5.2% from 4.4% last quarter. Vacancy is always highest in this fourth quarter and usually lowest in the summer, so this remains consistent with previous years. We’re seeing two-bedroom, two-bathroom units at the highest vacancy rate (5.7%) and efficiencies and one-bedroom units at the lowest vacancy rate (4.9%).

Historically, larger apartment buildings have higher vacancy rates, and this was evident in the stats from this quarter: Buildings with 200-349 had a vacancy rate of 5.6% and buildings with 9-50 units had a vacancy rate of 3.4%.

This slight jump in vacancies could be a result of the 832 new apartment units that were reported for this quarter.

Avg Rent 4th Quarter 2013 Denver

Average Rent: Typically we see average rent decline very slightly from third quarter to fourth quarter, and this year was no exception, but overall this trend is very favorable for landlords.

In 2013′s fourth quarter, rental discounts and concessions averaged 7.7%, which was down from 8.8% from the third quarter.

 

Higher Expectation of Apartment Amenities

New Denver apartment units cropping up in the metro area are starting a bit of an amenities war as we are seeing many of them featuring gyms, commercial kitchens, basketball courts, dog parks, espresso machines, roof top bars, and pool areas.

However, it has yet to be determined how these new amenities will effect rent prices (how many of these amenities will be absorbed into the rent, and how much will that bump rent rates?). Currently, these rents are hovering around $2.60 per square foot (though there may be room to scale back) in contrast with the current metro average of $1.23 per square foot.

As far as the apartment war on amenities, we expect to see these newer, amenity-rich complexes to win the occupancy war in the beginning until existing complexes begin discount entry rents. Because of this, we’ll see some swings in occupancy rates throughout the summer.

 

In either case, Denver real estate development certainly keeps us on our toes. If you are looking for Denver apartment buildings for sale or for Denver real estate development, give me a call or send me an email to discuss how we can get you in on this new Denver apartment action.

Brian MacMillan: Investment Specialist

Denver Investment Properties

720-938-4350

Let's Chat

I've been helping investors with developments, flips, scrapes, buy and hold cash flowing apartment buildings/homes/condos since 2001. Give me a call at 720-938-4350 to chat, or shoot me an email at BrianMacMillan@Mac.com.

Or feel free to search the properties for sale in the Front Range.

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JUST SOLD: Land for future S Denver/Englewood Duplex Development

Just Sold: 2835 S Sherman Street, Englewood, CO 80113

Sold Price: 176k

My most recent development deal took place off the South Broadway corridor in N Englewood, only a few blocks from the Denver County line, and about 10 minutes to Downtown Denver.

There was an Englewood home for sale on the property (seen above), it will be taken down shortly.  Check back mid to late summer for a contemporary duplex, selling for around 500k per side.

With inventory at 13 yr lows currently, finding good Denver fix and flip opportunities/deals is tough.  If you’re interested in Denver investment properties, we should get together and discuss the various options that make sense in the current Denver investment market.

 

Let's Chat

I've been helping investors with developments, flips, scrapes, buy and hold cash flowing apartment buildings/homes/condos since 2001. Give me a call at 720-938-4350 to chat, or shoot me an email at BrianMacMillan@Mac.com.

Or feel free to search the properties for sale in the Front Range.

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Just Listed: NE Denver 4-Plex For Sale

Just Listed: 7055 E 60th Place, Commerce City, CO 80022

List Price: 405k

If you’re looking for cash flowing Denver Investment Properties for sale, this Denver 4-plex for sale is a great place to start.  All units are 2 bedrooms, 1 bath.  Each unit is currently on a month to month lease, I see that as a benefit to the new Buyer.  Lets take a look at how this Denver Income Property is currently performing:

AAI (Average Annual Income): $36,480

AAE (Average Annual Expenses): $10,575

AANI (Average Annual Net Income): $25,905

PAI (Projected Annual Income): $40,529

PAE (Projected Annual Expenses): $6,526

PANI (Projected Annual Net Income): $34,003

Based off the number above, the subject property is performing at a mid 6% Cap Rate.  There are a few ways owners/investors can increase Cap rates:

First, you could raise rents.  Our subject property currently has month to month leases in place. Denver vacancy rates are extremely low right now, rents are on the rise.  Raise rents immediately for increased cash flow/higher Cap rate.

Second, as the owner, implement utility bill backs to the tenants instead of paying their utilities for them.  This eliminates a good amount of your expenses and places those previous expenses into annual income, hence more cash flow/larger Cap rate.

Interest rates are still low, now is an amazing time to become apart of the Denver investment market and this is a great property to get started with!

Contact me, Brian MacMillan, for more info.

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Let's Chat

I've been helping investors with developments, flips, scrapes, buy and hold cash flowing apartment buildings/homes/condos since 2001. Give me a call at 720-938-4350 to chat, or shoot me an email at BrianMacMillan@Mac.com.

Or feel free to search the properties for sale in the Front Range.