Case Study: Cinnamon Ridge Apartments

Real estate investement properties Denver Cinnamon Ridge

Investment Type: Value Add Apartment Building Investment

In September 2013 Radford on behalf of a client brokered the purchase of a 69 unit building just north of old town Arvada.  This property was identified after an exhausitve 9 month search that included offers on several other properties.  The building was purchased for $72k/Unit which is very low considering 45 of the units are large 2 bedrooms.  With properties in Central Denver being very expensive in terms of cap rates, this investor wanted to look elswhere in the metro area for deals.

Investment Returns
Contract Price - $4,851,000 ($72,464/Unit)
Capitalization Rate on Current Operations - 8.40%
Projected IRR over Clients Holding Period - 44.86% (returns are positively affected by mezannine debt)

This deal is another example of Radford's unique ability to find multifamily investments that generate much higher returns than can be found in the market as a whole.  In this case it was achieved through a combination of consistent hard work and our extensive relationships in the multifamily brokerage community.