The Denver Apartment Buildings For Sale website announces that Kyle Malnati and Greg Johnson of Madison & Company Properties brokered the sale of another 12-unit apartment building in Congress Park today. This apartment building is named “The Gallery” for its distinctive artwork throughout the hallways of the building, and the property is located at 1320 Garfield Street, Denver, CO 80206.
This real estate transaction has multiple story-lines:
– flipping an apartment building just one year after purchase
– foreign investment into the Denver apartment market
– hot multifamily sales market in Central Denver
– record setting price for a 12-unit Central Denver apartment building
This sale is another example of a hot Central Denver multifamily sales environment. The Seller had only owned the property for one year and was able to make a large profit ($525,000) in a short amount of time. The sale also demonstrates the rise in value of apartment buildings throughout Central Denver neighborhoods. 1320 Garfield Street has sold three times over the past 2.5 years which provides us with an interesting perspective on market values:
– 06/15/2015: $2,800,000 ($233,334/unit)
– 05/19/2014: $2,275,000 ($189,584/unit)
– 12/07/2012: $1,025,000 ($85,417/unit)
We have provided detailed statistics regarding this sale below:
Denver Neighborhood: Congress Park
Property Name: The Gallery
Address: 1320 Garfield Street, Denver, CO 80206
Sale Price: $2,800,000
Sale Date: 6/15/2015
Cap Rate: 5.05% (actual)
# of Units: 12
Unit Mix: 5-2Br/1Ba, 7-1Br/1Ba
Building Size: 10,752* SF
Lot Size: 7,057* SF
Year Built: 1961
Parking Spaces: 7 off-street spaces
Link to Denver County Assessor’s Record
*Reader to verify accuracy of square footage*
– Fully Remodeled with High End Finishes
– Parking Lot with Abundant Spaces for Residents
– Spacious Floorplans with Abundant Closets
– Great Congress Park Location
– Walking Distance to Retail: TAG Burger Bar, Under The Umbrella Coffee, The Daily Scoop
MADISON COMMERCIAL PROPERTIES ANNOUNCES SALE OF THE GALLERY APARTMENTS
PRESS RELEASE ISSUED on June 15, 2015 – Madison Commercial Properties announces the sale of the recently-renovated apartment community at 1320 Garfield Street for $2,800,000 which equates to over $230,000/unit. The property was 100% leased at the time of sale.
The 12-unit property boasts a unique mix of 1 and 2 bedroom apartment homes not typically found in a building of this size. Greg Johnson and Kyle Malnati, of Madison Commercial Properties, worked with both the Seller and Buyer in the transaction.
The property was extensively remodeled in 2013 by Cornerstone Apartment Services; Cornerstone is known for true excellence as a 3rd party management company in Central Denver.
“The Buyer is a foreign investment group that was drawn to the truly turn-key nature of the investment,” Mr. Johnson commented, who noted that the building was generating premium rents thanks to effective management by Cornerstone Apartment Services.
Mr. Malnati noted the seemingly high price per unit of the sale, and added, “In 2015, we continue to see evidence of an appreciating multifamily sales environment. When Greg and I sold this property just a year ago, we felt like the investor had some “built-in” equity as they purchased the building in 2014 off-market. The 2015 sale is a great example that full market exposure is still the best way to maximize your sales price. High rents have continued to push apartment prices to unprecedented levels. Only three years ago, it was a big surprise to see a sale above $100,000/unit.”
Special thanks to our friends and colleagues:
Brianna Corwin, Nichole Segura, and Laurel Rossi at Stewart Title
For more information about this apartment building sale in Denver’s Congress Park neighborhood or other Colorado commercial real estate transactions, please contact:
Greg Johnson and Kyle Malnati
Madison & Company Properties
Madison Commercial Properties
About: Madison Commercial Properties is a Denver-based commercial real estate firm specializing in apartment brokerage and investment sales in central Denver. Managed by Kyle Malnati and Greg Johnson, Madison Commercial Properties is a division of Madison & Co. Properties. For more information, please visit: http://www.DenverApartmentBuildingsForSale.com or http://www.madisonprops.com.
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Madison Commercial Properties, Ltd. 1221 S. Clarkson Street, Denver, CO 80210 (303) 771-3850