Overview
Marcus & Millichap is pleased to present the Lakewood Portfolio, a five-property, 157-unit collection in Lakewood, Colorado. Located just eight miles west of downtown Denver, Lakewood offers a desirable suburban lifestyle with convenient access to major employment hubs, including the tech, healthcare, and energy sectors.
Lakewood's rental market benefits from strong demand driven by population growth, limited housing supply, and rising interest rates that have kept many potential homebuyers in the rental market. Vacancy rates remain low, and rents continue to rise as residents seek affordability compared to downtown Denver. With limited new development due to zoning and land constraints, this trend is expected to persist.
The five properties, built between 1959 and 1973, are within a three-mile radius, offering investors operational efficiencies and economies of scale. The portfolio boasts a strong unit mix, with 83% (130 units) featuring two- and three-bedroom floor plans—ideal for Lakewood’s renter demographic seeking more space at an attainable price.
This well-maintained portfolio has undergone recent renovations, allowing for immediate, turn-key operations. Investors also have the potential to enhance returns through a light value-add renovation program to further increase rents. Additional income opportunities include implementing a utility bill-back system, with potential top-line revenue increases of over $175K, and installing in-unit washers and dryers, which could generate an additional $75 per unit per month.
Despite Denver’s recent inventory expansion, the Lakewood/West Denver submarket has remained resilient, with only a 1.4% inventory increase—66% lower than the metro average. This positioning ensures strong rent growth potential due to tight vacancies and limited future competition. The Lakewood Portfolio presents a rare opportunity to acquire a sizable, attainable housing collection in a high-performing submarket with significant upside potential.
Investment Highlights
Immediate Scale of Attainable Housing
The Lakewood Portfolio offers investors access to immediate scale of attainable housing in top performing Denver Suburbs. The economies of scale provide investors the opportunity to reduce expenses associated with management, by way of having a heavy concentration of similar assets consolidated in one submarket. The Portfolio consists of 157 units across five properties.
Strong Unit Mix Comprised of 83% (130 Units) Two- and Three-Bedroom Floorplans
The key renter demographic in Lakewood seeks more space at an attainable rent level, with relative affordability being a primary demand driver in these submarkets. The portfolio is well-positioned to capitalize on the growing sentiment of “renting for longer.” This is especially important in an environment of elevated concessions and vacancy.
Turn Key With a Light Value-Add Opportunity
The Lakewood Portfolio is very well-maintained having received a variety of recent improvements and renovation allowing a buyer to immediately step into a perfectly positioned property portfolio. A buyer will have the opportunity to operate the community as a turn-key investment or test the next level of renovations with a light value-add renovation program to further increase rents.
Top Performing Submarkets
The Lakewood/West Denver Corridor submarket boasts remarkable market fundamentals, as evidenced by its low vacancy rate that is the third lowest of 16 submarkets in metro Denver. Primary demand drivers in the Lakewood/West Corridor submarket are proximity to downtown Denver and relative affordability, which is supported by the fact that the average rent in the submarket is nearly $100/month lower than the metro Denver average.
Ancillary Income Upside Via Implantation of Utility Billback & W/D Addition
The Lakewood Portfolio features multiple future income streams that are not currently being captured via the implementation of utility bill-back. Marcus & Millichap’s analysis suggests that over $175K of top line revenue is available for the Lakewood Portfolio. Moreover, the competitive set suggests $75/month is acheivable by installing in-unit washers and dryers.
Exterior Amenity Expansion
Space for future amenity build out is available at several of the properties that are situated on larger parcels, like McKenzie, Lampliter, and Barcelona. These properties offer ample green space that could be built out with community grilling areas, pergolas, picnic areas, or even dog parks. These additions will drive overall rent levels and enhance tenant experience.
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