Denver Community Trades Hands in Low-Vacancy Market
- Apr 28, 2016
Lakewood, Colo.—Maplewood Apartments, a 48-unit apartment property in Lakewood, Colo., has traded for $5.6 million. Lakewood is a major suburb west of Denver.
Brian Haggar, apartment specialist in Marcus & Millichap’s Denver office and associate director of National Multi Housing Group, represented the seller, a limited liability company. He also procured the buyer, a different limited liability company.
According to Haggar, Maplewood Apartments is in an extremely low-vacancy market. The neighborhood sits near Colfax Avenue, a commercial street almost as old as Denver itself.
The property includes a mix of two- and three-bedroom units and has various amenities, including a playground, basketball court, on-site laundry and off-street parking. The property has a recently painted exterior and is currently at 95 percent occupancy.
On the whole, Denver’s one of the strongest apartment markets in the country. Despite an influx of inventory recently, vacancy has slipped to historic lows amid rising renter demand, and the average rent has advanced more than 60 percent from the previous peak, according to Marcus & Millichap.
This year, developers will complete a record number of units, inducing supply-side pressure and softening property operations. As the pace of apartment development begins to stabilize next year, so will advances in apartment rents.