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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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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

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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.

 

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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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Just Sold: Cash Flowing Englewood Duplex

Just Sold: 3090 S Cherokee Street, Englewood, CO 80110

List Price: 235k

Sold Price: 220k ( I represented the Buyer/Investor)

This was a good deal for a past client/investor of mine.  The Englewood duplex for sale is an up/down duplex that will cash flow significantly.  The lot is also zoned R2 which will allow for possible development options in the future.  If you haven’t considered the Englewood area, now would be a good time to contact me to discuss not only Englewood rental options, but Englewood investment/development options.  The South Broadway area has really changed over the past few years and isn’t showing any signs of slowing down.

Here are a few photos of the Englewood duplex that just sold:

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