Apartment Sale in Lakewood Demonstrates Trend in Region’s CAP Rates
Rosalie at Belmar, a 40-unit apartment community in Lakewood, has sold for $7 million. According to Marcus & Millichap’s Denver office, steady rent growth in Denver’s submarkets has piqued the interest of investors.
Boomer Beatty and Peter Standley, both senior associates in Marcus & Millichap’s Denver office, had the exclusive listing to market the property on behalf of the seller, who’s name was not released. Beatty and Standley also secured and represented the undisclosed buyer.
“This sale indicates investors’ willingness to invest in apartments in a compressed cap rate environment,” said Standley, adding that the transaction “signifies that buyers see a trend in steady rent growth in Denver’s submarkets.”
The Rosalie at Belmar is located blocks from the popular Belmar master planned community at Alameda Avenue and Wadsworth Boulevard in Lakewood. The property, built in 1962, offers 21 one-bedroom, 16 two-bedroom, and three three-bedroom units.
Many of the units are newly updated with designer plank flooring, shaker cabinets, double pane vinyl windows, solid surface counters, black appliances, air conditioning, and ceiling fans. The property also offers an updated central common area with picnic area, basketball court and playground as well as off-street parking and on-site laundry.
Despite existing upgrades to the well-maintained building, the buyer can still participate in a value-add opportunity by adding a unit and increasing rents. The property offered the buyer a strong investment opportunity to establish themselves in Lakewood’s popular and growth-limited market.