The Epoque residential complex in Golden, Colorado, has been sold for $62 million. The buyer is Chicago-based Draper and Kramer, while the seller is Denver-based Forum Investment Group. The deal for the property at 1175 Newstar Way has been recorded in the Jefferson County property registers.
Epoque has 120 apartments. The units range from studios measuring about 590 square feet to three-bedroom, three-bathroom apartments measuring about 1,660 square feet.
Company freezes new purchases in Denver
The acquisition is not Draper and Kramer’s first investment in the Denver area, but the company does not expect to make any new purchases there until rental housing market conditions improve. The company describes its current approach as “wait and see.”
“Denver’s recovery is lagging behind other markets,” Draper and Kramer Chief Investment Officer Blas Puzon told Denver Business Journal. According to him, the city’s regulatory environment is making the rental housing market even more difficult.
The company already owns two other properties in the Denver metropolitan area — Tempo Nine Mile in Aurora and The Wright in Centennial. Draper and Kramer also has assets in Chicago, Austin, the Dallas–Fort Worth area, Phoenix and St. Louis.
Surplus of new housing puts pressure on rents
The Denver market is facing a surplus of newly built apartments. This gives renters greater leverage and has led to a 3.5% year-over-year decline in rents.
The pressure is not limited to Colorado. Higher financing costs and the large number of new homes are changing conditions for investors in multifamily properties across the United States.
Property bought for $3 million in 2017
Forum Investment Group acquired the land and property in 2017 for $3 million, after which it developed the Epoque residential complex.
Amenities at the complex include a game room, a community garden, a fitness center and an outdoor swimming pool. The purchase in Golden comes several weeks after Draper and Kramer acquired a 268-unit residential building in a Chicago suburb for $126 million.
Sources: bisnow.com, bizjournals.com
Detailed statistics on average property prices in Bulgaria by city and neighborhood can be found at imot.bg