The East Colfax Portfolio, a 26,662-square-foot, 36-unit, three-property multifamily portfolio, has sold for $4 million. Adam Riddle, Benton Adams and Austin Smith of Capstone brokered the transaction.
The buyer, VareCo, was awarded these properties due to its strong Denver track record, ability to navigate the capital markets, and aggressively structured offer terms. VareCo plans to initiate a heavy value add program and stabilize the assets. “We knew the buyers would be a great fit for the assets due to their ability to execute on a value add plan,” said Austin Smith of Capstone.
The owner of the properties has been a longtime client and purchased two of the three assets through Capstone years earlier. When it came time for the owner to liquidate, he entrusted Capstone Companies to find the most qualified buyer with the highest likelihood of closing. Going into the sale, it was acknowledged that the drastic changes to the debt markets coupled with a higher-than-average vacancy; financing of these assets was going to be challenging. “Capstone Companies was well positioned for the sale of these assets due to their knowledge of the submarket, current buyer pool and strong process of qualifying offers,” stated the seller JMA Denver 2, LLC.
The portfolio is located on the Denver side of the ever-changing East Colfax corridor. Conveniently positioned at the cross streets of Trenton, Verbena, and Wabash. The working-class neighborhood offers a strong rental demand with many employment opportunities nearby.
