Page 10 —
COLORADO REAL ESTATE JOURNAL
— March 2-March 15, 2016
Multifamily
by John Rebchook
Arvada increasingly is becom-
ing an attractive target for apart-
ment investors.
No sale better reflects that than
the recent purchase of the 264-
unit Panorama at Arvada Ridge
at 5654 Kipling Parkway.
Seagate Properties, based in
San Rafael, California, purchased
the community for $58.5 million,
records show.
That equates to a sales price of
$221,591 per unit and $236.08 per
square foot.
“That’s a pretty big number,”
said David Potarf, who listed
and marketed the community
with fellow CBRE team mem-
bers Dan Woodward and Matt
Barnett.
The seller was Panorama AR
LLLP.
Records show the local seller
paid $28.3 million for the prop-
erty in 2010. In other words, in
six years the seller basically sold
it for double what he paid for it.
“This is a great asset,” Potarf
said.
“It’s on the west side of town,
which is always popular for
investors,” he said.
Potarf said he knows that the
community would have gener-
ated huge interest if they had
marketed widely.
“We did not have the chance,”
Potarf said.
“It was a 1031 exchange buyer
and they came in and hit the
number,” he said.
Seagate, he said, has been in
and out of the Denver-area mar-
ket for many years.
“We’ve sold them three or four
properties” over the years, Potarf
said.
Panorama at Arvada Ridge
was built in 2005, but has held
up well.
“It is newer construction
and has 9-foot ceilings, meet-
ing rooms and good visibility,”
Potarf said.
The average unit size is 939
sf and the average rent is $1.75
per sf, according to Apartment
Insights, the database owned by
appraiser Cary Bruteig.
“It has very good visibility and
it is very close to the light-rail sta-
tion,” Potarf said.
“I don’t know if you would
call it a TOD (transit-oriented
development), as it doesn’t open
up to the light-rail station, but it
is only minutes away,” he said.
Part of the appeal to inves-
tors, and renters who are seeking
a less expensive alternative to
downtown Denver, is that it is
close to downtown.
“If there is no traffic, you can
make it to downtown in 15 min-
utes,” Potarf said.
“And if you are heading west,
you are that much closer to the
mountains,” he said.
He said that Seagate probably
paid close to the replacement
cost for the community.
“But that is what you could
build it at today,” Potarf said.
“Every month, construction
costs go up because of rising
labor and property costs. That
really is the case with everything
that is selling in today’s market,”
Potarf said.
s
An exterior shot of the Panorama at Arvada Ridge
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