Newly Constructed Townhome Project in Denver Sells for $10.5M
Delaware Street Townhomes, a recently constructed 22-unit townhome property in Denver South Broadway neighborhood, has sold to Hill Street Realty for $10.45 million.
Built in 2022, the townhomes are fully leased with three-bedroom floorplans averaging 1,272 square feet and high-end finishes. The property is located at 2566-2598 S. Delaware Street and 351-375 W. Vassar Ave., near the intersection of US Highway 285 and Santa Fe Drive. The location is near several large employers and job centers, including the University of Denver, Porter Adventist Hospital, Swedish Medical Center and the Denver Tech Center.
“At the initiation of the sale assignment, the newly constructed Delaware Street Townhomes was in lease-up amid an unclear and volatile market. Treasuries rose nearly 60 basis points from the point of listing to closing, posing clear financing challenges. Still, taking a highly selective approach and collaborating with CBRE’s Debt and Structured Finance team allowed us to remain nimble and ultimately identify an out-of-state buyer, Hill Street Realty,” said Erik Toll, vice president, CBRE.
Metro Denver’s apartment market continued to stabilize in the second quarter, according to CBRE research. The market saw 4,020 more units occupied than vacated in the quarter, marking the third-highest net absorption among U.S. markets, trailing only New York and Orlando. Overall occupancy remained unchanged quarter over quarter at 94.2%, while the average asking rent increased 1.9%, or approximately $36 per unit, compared to the first quarter.
Buoying the apartment market is the widening gap between home ownership costs and rents. The average monthly mortgage payment was more than 2.0 times the average rent in Denver in the second quarter of 2023, per CBRE data, the second widest cost gap between owning and renting on record.