Arvada, CO — Granite Capital Group (GCG), a Santa Barbara, Calif. real estate investment firm with a number of Colorado holdings, has purchased the recently completed Kipling Commons, a 48-unit residential development in Arvada, Colorado, 11 miles northwest of downtown Denver. The sales price was $10.6 million. It is anticipated the project will immediately return to investors a better than 10% cash on cash return.
Located at 10125 West 72nd Avenue, Kipling Commons consists of six, two-story suburban apartment buildings, each housing eight units. The two-bedroom, two-bath apartments come with one-car detached garages, Class A finishes such as quartz counters, stainless steel appliances, plank LVT hardwood flooring and an in-unit washer and dryer. They range in size from 903 to 1,120 square feet.
Through its GCG Kipling Commons, LP investment fund, GCG purchased the new development in September, with 47 of 48 units leased prior to the close of escrow.
“New construction such as Kipling Commons is attractive to investors because no rehab is required. This lowers investor risk,” says BruceSavett, GCG founder and principal. “Maintenance costs associated with new high-end construction are more predictable.”
Kipling Commons is designed to appeal to young professionals and families who are priced out of the housing market or choose to rent instead of own and are seeking an alternative to more urban settings. “Demand for housing in Arvada is high,” says Savett. “The vacancy rate is under 3 percent. Introducing new housing into the market helps fill a need while making it a smart venture for investors.”
“There is little new single family residential construction in the Denver market,” says Savett. “This will likely continue. Although a strong jobs market is keeping demand high, construction is getting cost prohibitive. However, the region remains one of the nation’s economic bright spots so GCG will continue to seek new residential investment opportunities.”
[Editor Note: The project team includes:
Architect: KGA Studio Architects
General Contractor: Kipling Commons LLC]
Image courtesy of Granite Capital Group