13-Unit Apartment Building in Cheesman Park Sells for $4M
Worwick, a 13-unit apartment property located at 1158 Marion St. in Denver’s Cheesman Park neighborhood, has sold for $4 million.
Greg Parker and Greg Price, investment specialists in Marcus & Millichap’s Denver office, had the exclusive listing to market the property on behalf of the seller, a limited liability company.
“Worwick presented a unique opportunity to acquire a legacy asset in the highly sought-after Cheesman Park sub market,” Parker said.
The property’s sales price and cap rate are indicative of the continued competitive environment in the core Denver market.
“At $4 million the deal shakes out to $307,692 per unit, or about $360 per square foot,” Parker said. “This puts the in-place cap rate at roughly 3 percent.”
While the current rents are approximately $1,300 per unit, the property offers value-add opportunities.
“The seller had owned and meticulously maintained the property for over four decades,” Parker said.
The investor, who was undisclosed, plans to renovate the units by restoring many of the vintage features while also adding amenities that appeal to modern-day renters. Doing so, could enable the investor to raise rents by an estimated 25 percent above current levels.
In addition to the 850-square-foot one-bedroom floor plans that have the potential for conversion into two-bedroom units, Worwick offers garage parking — an amenity that is in high demand in the urban areas of the Denver market.
Photo courtesy of Marcus & Millichap