Sale of Denver-Area Portfolio Demonstrates Demand for 1031 Exchanges

A three-property portfolio located in Westminster, Wheat Ridge and Commerce City, has sold for a total of $3,115,000 to separate buyers. 7030 Stuart St. in Westminster sold for $1,900,000; 7101 E 60th Way in Commerce City sold for $1,530,000; and 3715 Pierce in Wheat Ridge sold for $1,685,000.

Boomer Beatty and Peter Standley, both investment specialists at Marcus & Millichap (NYSE: MMI), represented the seller in these deals. Beatty and Standley also secured and represented the buyer for 7030 Stuart St. and 3715 Pierce St. The buyers for 7101 E 60th Way represented themselves.

With these sales, the seller entered a 1031 Exchange with the goal of trading out of his Colorado properties and into a new market. “The geographic spread of the properties made it difficult to market the portfolio to a single buyer,” said Beatty, “So instead, we found separate buyers. We were able to support our seller’s 1031 Exchange timeline while coordinating with three buyers for simultaneous closings.”

“The portfolio sale represents investor demand for the 1031 exchange process as well as the impact exchanges have on market velocity,” said Standley. “The availability of the 1031 exchange allowed the seller to consider selling his entire portfolio and effectively created three transactions where there may have been none,” Standley added.

7030 Stuart St., also known as 4260 w 70th Pl., is a 12-unit apartment community in Westminster just blocks from Westminster High School. The property consists of two adjacent buildings and offers a rare unit mix of all two-bedroom floorplans. The property has been well maintained with recent maintenance including updates to 75 percent of unit interiors, new roofs in 2020, new exterior stairs and vinyl windows. These improvements still leave room for upside through further light renovations as well as existing on-site income-producing laundry, individually metered electric and ample off-street parking.

3715 Pierce St. is an 11-unit apartment community in Wheat Ridge offering a mix of studio and one-bedroom units. The building underwent substantial renovations in 2018 including a new roof, new sewer line, new central AC and furnaces in each unit, updated electrical panels, new vinyl windows and a complete rebuild of the two studio units. All units are individually metered for gas and have an existing RUB system in place. The property features two income-producing laundry rooms with new equipment as well as two on-site storage units that could provide additional income if rented to residents.

7101 E 60th Way is a 10-unit apartment community offering a solid mix of one- and two-bedroom units in Commerce City within walking distance of Dick’s Sporting Goods Park. Recent improvements include a new roof and new furnaces in most units. The property sits on a large 0.94-acre parcel and offers ample parking as well as six income-producing garages. The units themselves are individually metered for gas and electric and feature large, single-story floorplans. Residents enjoy in-unit washer and dryer hookups and front and rear entrances.

“This was a unique asset because of Commerce City’s limited multifamily inventory and the market’s inability to support growing rental demand,” said Beatty, adding that the buyer is well-positioned to hold a rare asset in a growing submarket.

Photo courtesy of Marcus & Millichap

Related Posts

Scroll to Top