A few weeks ago, I introduced you to Kaufman Hagan Commercial Real Estate, a new commercial brokerage that’s changing the way things are done. One of the ways they’re switching it up is how they’re listing properties.
- Listen to the podcast “#335: Commercial Listing: Turnkey 41- Unit Apartment Building in Northeast Denver” on the Denver Real Estate Investing Podcast
- Watch the YouTube video (at the bottom).
- Read the blog post. Note, the blog is an executive summary. Get the in-depth breakdown from the podcast or video.
In addition to cold calling, customized Offering Memorandums (OMs), and postcards, they’re creating websites, videos, and running digital ads. The intent is to drive the most action while giving a clear and concise message to investors before they get on the phone.
Today, we’re talking about a new listing that will be coming on the market soon. Keep reading to find out all of the details and why it’s a great investment.
Renovated Building in the Path of Progress
Midtown Plaza Apartments is a 41-unit apartment building in northwest Denver near the 36th corridor. It’s a fully renovated, turnkey building that’s a mix of townhomes, studios, and one-bedroom units. The owner bought the building with the intent to hold it for a long time, so he did all of the renovations at a high level. Now, his circumstances have changed and he’s moving onto bigger deals.
Over $1M worth of renovations were put into the property, including new boilers, windows, roof, and landscaping. Every unit has been turned over with great attention to detail. The owner’s background is in single family homes, and he brought that mindset into renovating these units. Tenants will want to stay here for many years.
With a purchase price is $8.8M, this a great deal for someone looking for a turnkey asset in which they can park their money and ride the wave of growth. The cap rate is 5.6, which is above the market cap rate for this type of property. This is a rare opportunity to get a cash flowing asset.
In order to drive the most offers, Kaufman Hagan wants to give everyone interested a shot at this building. They are willing to work with an investor who needs to sell their property in order to transition into this one. They plan on doing their call for offers at the end of January and aim to be under contract in early February.
Who’s the Right Buyer for this Property?
The ideal investor for this property is someone who wants a reprieve from the daily grind of managing their assets. Once they hire a property manager to run the building, they can enjoy the cash flow and hold it for a long time. Being able to cash flow in Denver is rare, which makes this is an exciting opportunity for investors.