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Colorado Apartment Buildings: Hot Investment Opportunities

Vacancies are down and rent is up all over the nation, but Colorado is drawing investors who are snapping up apartment complexes, some at record prices. Colorado's vacancy rate hit a 10-Year low the second quarter of 2011 which contributed to a 2% average increase in rent statewide.

The Colorado Division of Housing reports that new construction on multi-family projects are up also. CDOH reports that during the first seven months of 2011, multi-family permits are up 101 percent.

Multiple California investors have purchased multi-family complexes in the Denver metro area this year. "Denver's was one of the strongest markets during the downturn for us." says Jeffrey Fuller, senior vice-president of Bascom Group who recently paid over $31 million dollars for two apartment complexes in Denver. Two other firms from California also bought multi-family complexes in the Denver metro area.

Recently, New Jersey based, The Connell Company, purchased the Solera apartments in downtown Denver, for $37 million- a record per-unit price for Colorado. The Solera building is a LEED Gold certified community offering energy efficient luxury apartment living.

"It's really no surprise (that) Denver is a hot spot in the United States for apartment investments. There is a real appetite for core assets in this market." says Terrance Hunt, of Apartment Realty Advisors.

"Hunt estimated the sales price represents $340 per square foot for the 111,158 square feet of apartment space at Solera." according to the Denver Business Journal. "There's also 5,200 square feet of retail space there. Monthly rents for the one- and two-bedroom apartments range from $1,185 to $3,090."

Read more at The Denver Business Journal.

photo credit: Derek K. Miller