Brooklyn Park Rowhouses near Rigden Farm have been sold for nearly $28 million, or $264,909 per apartment, a Fort Collins record for conventional multifamily properties.
The 105 apartments with two- and three-car garages were sold to Granite Capital Group, a California-based real estate investment firm, which plans to renovate and rebrand the property.
The 10-year-old property at 2758 Iowa Drive and is fully leased. The units feature patios, private entries, high ceilings and attached garages.
“Brooklyn Park is a great asset located in a good market,” said Nick Steele of Marcus and Millichap’s Denver office, which handled the sale. “The property will continue to experience very strong operations as a result of the quality of the asset and the strength of the Fort Collins apartment market.”
The next closest sale for market-rate apartments was Mill House Apartments in the River District downtown, which sold for $252,000 per unit earlier this year, according to Brian Mannlein, director at Cushman & Wakefield in Fort Collins.
While the price is a record for conventional multifamily properties, student housing projects Lokal and Aspen Heights sold for more, $304,000 and $297,700 per unit respectively, Mannlein said.
Even with hundreds of new multifamily apartments in the planning stages or under construction, apartment values have been steadily climbing, he said.
“With more than 2 percent population growth, lack of single-family housing supply and difficulty in finding any single family homes for less than $400,000, I anticipate a continuation of climbing multifamily values,” Mannlein said.
“Combine those factors with rising costs of construction due to labor, materials and city design standards, and fees and developers are driven to build high-end apartments, which is increasing the value of our regional multifamily stock.”