Overview
Marcus & Millichap is pleased to present Lakewood Crossing, a 54-unit multifamily community located in Lakewood Colorado. Lakewood Crossing provides investors an opportunity to acquire a proven value-add property in one of metro Denver’s top performing submarkets. Built in 1971, the property features a complementary mix of (18) one-bedroom and (36) two-bedroom units. The property has been well maintained by current ownership offering a new owner the opportunity to finish the renovations for additional income. Additionally, the property features ample amenities such as a clubhouse, swimming pool, grilling stations, and a playground. The property is surrounded by major employment centers including the Denver Federal Center, Union Business Corridor, St. Anthony Hospital, and Colorado Christian University.
Investment Highlights
Turnkey with Light Value Add Opportunity
Lakewood Crossing is well-maintained featuring a variety of recent improvements. A buyer will have the opportunity to operate the community as a turnkey investment of test the next level of renovations such as installing hard surface counter tops, replacing the cabinet fronts with shaker cabinets and modern hardware, and adding a modern backsplash. On a weighted average proforma basis, renovated units at Lakewood Crossing will achieve a $164/Month premium, representing a 26% annual return on renovation cost based on weighted average proforma rents of $1,613 on all units.
Opportunity to Add In-Unit Washers and Dryers
The two-bedroom floorplan features a large walk-in closet adjacent to the bathroom ideal for a stackable washer/ dryer. The ability to tap into the existing water line coupled with attic/crawlspace venting make for a seamless installation. Comparable properties suggest rental premiums of ~$100/month.
Muted Oncoming Supply Pipeline Fuels Future Demand
The Lakewood submarket in one of the most supply constrained submarket within Metro Denver due to a 1% Growth-Cap Housing Ordinance which passed in 2019 and remains instated until 2026. There has only been 248 conventional multifamily units delivered since 2020 within a three mile radius of Lakewood Crossing. The majority of new deliveries within the city limits of Lakewood have been outside the three mile radius around Lakewood Crossing, illustrating that Lakewood Crossing is sheltered from new competition.Given the lack of new construction starts (zero units under construction), existing product is well positioned to continue to experience outsized rental growth relative to neighboring submarkets within Metro Denver.
Proximity to Numerous Amenities
In addition to nearby walkable restaurants and shops, Lakewood Crossing is located just five minutes from the Belmar Shopping District providing residents with convenient access to a variety of dining and shopping options. Moreover, the property is less than ten minutes from outdoor recreation such as the Bear Creek Greenbelt, Belmar Park, and Kendrick Lake Park.
Multiple Employment Centers Minutes from the Property
Boasting convenient access to both Wadsworth Blvd and US-285, Lakewood Crossing is a short commute to several of Metro Denver’s largest employment centers including the Denver Federal Center, Denver CBD, and Denver Tech Center.
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