The asking price is about 3.5 times more than JPI received last year for the 414-unit Jefferson at Lowry. The $51.2-million sale of the Jefferson at Lowry is the most expensive apartment community sold so far in the Denver area.
Horizon at Rock Creek also would set a record on a per-unit basis of about $150,000 per unit. That's almost $20,000 more per unit than the current record.
If Simpson gets the asking price, it also would be the lowest cap rate of any apartment sale, says Jerry Kendall, an apartment broker with Cushman & Wakefield Colorado. Current cap rates are around 7.5%, while Simpson is seeking a cap rate below 7%, he says.
Moran & Co is marketing the project.
Luke Simpson, of Simpson Housing, says a potential buyer might want to keep it as a rental community or might want to convert it into condominiums. Simpson notes that housing prices in nearby Boulder, Lafayette, Louisville, Superior and Broomfield are increasingly becoming unaffordable to many people.
And despite the slowdown in the economy, he thinks the US 36 corridor will remain a high-tech hotbed.
The project also has every conceivable amenity, he says.
It includes a two-story, 21,00-sf clubhouse built next to a 13-acre man-made lake. The clubhouse includes a gymnasium that can be used as either a basketball or volleyball court. The athletic club is as nice as most private health clubs. It also includes a 48-seat movie theater, a grand piano in one of the lounges, and a business center with four computer terminals, a fax machine, a copier and a conference room.
Steve Rahe, an apartment broker says the likely buyer will be someone who isn't in the Denver market and wishes to achieve economies of scale and an immediate foothold in the market. ''Will it sell at this price? Time will tell,'' Rahe tells GlobeSt.com.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
