Sold Price: $1,440,000

I represented a long time friend/client on the acquisition of this 6 unit apartment building in the Cheesman Park/Capitol Hill area of Denver. All units are very spacious, offer a good unit mix, include washers/dryers in all units, and have private outdoor decks/patios for each unit/tenant to enjoy. There is some room to push rents and some capital improvement opportunities to help push future rents as well.

From the Denver Post yesterday:

Nationally, median monthly rents went from $817 in 2009 to $1,163 in 2021, a gain of 42%. Denver’s gain was 82%, going from $856 a month to $1,554. That jump, almost double the pace experienced nationally, was second to only San Jose, the hub of California’s Silicon Valley, where monthly rents went up 85%, from $1,360 to $2,511.

If you’re interested in Denver Investment Properties lets discuss what options could work for you and get started growing your retirement portfolio!

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.

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.