DENVER - Atlanta-headquartered ARA, the largest privately held, full-service investment advisory brokerage firm in the nation focusing exclusively on the multihousing industry, recently brokered the sale of Ruth Dianne, a 24-unit property in Denver, CO. ARA Colorado’s Justin Hunt, Robert Bratley, Spencer Bradley and Andy Hellman represented the seller, a Denver-based private investor, in the transaction.
An out-of-state real estate investor purchased the property for $3,050,000, representing $127,083 per unit and $201.45 per square foot. The final sale price ended up approximately ten percent above the original list price.
ARA’s Justin Hunt explained, “This is a great example of the strength of the current market and why taking a property to market pays dividends. Ruth Dianne received unsolicited offers prior to taking the property to market, the highest of which was at 75% of the final sales price.” Hunt added, “For a long-term owner the off-market offers might be enticing, but in today’s market proper representation will create competition, qualify each investor, push pricing, and ensure no money is left on the table.”
ARA’s Robert Bratley said, “Due to ARA’s national reach we opened the door to out-of-state investors looking for properties in the coveted central Denver submarket and received 16 offers on Ruth Dianne, nine of which were at or above the list price.”
ARA’s Spencer Bradley added, “The property is very well maintained but the units are not renovated and a few even have the original appliances. The price per unit is a record for the central Denver area and even surpassed pricing for renovated properties.”
Built in 1962, this nonrenovated property enjoys an excellent location in the West Washington Park neighborhood of Denver, Colorado. The property is surrounded by a plethora of neighborhood amenities including one of Denver’s largest and most popular parks, Washington Park, as well as a newly renovated recreation center, Whole Foods, and limitless shopping and dining establishments located along South Pearl Street. The West Washington Park neighborhood offers residents easy access to downtown Denver and the Southeast Business Center.
The property was 95.8% occupied at the time of closing. The cap rate at the time of sale was 4.04%.
To schedule an interview with an ARA executive regarding this transaction or for more information about ARA, please contact Lisa Robinson at [email protected] or 404.990.4900, or Amy Morris at [email protected]or 404.990.4902; locally, Justin Hunt at [email protected], Robert Bratley at [email protected], Spencer Bradley at [email protected], or Andy Hellman at [email protected]or 303.260.4478.
Atlanta-headquartered ARA is the largest privately held, full-service investment advisory firm in the nation that focuses exclusively on the brokerage, financing and capital sourcing of multihousing properties including conventional, affordable, distressed assets, notes sales, seniors, student & manufactured housing and multihousing land. ARA is comprised of the country’s top investment professionals who leverage a unique and fully integrated cooperative business platform of shared information, relationships and technology driven solutions. ARA’s unified enterprise approach ensures that clients are delivered the broadest asset exposure, effective matching of buyers and sellers, and the shortest transaction timeframes in the industry. The combination of resources, unparalleled market expertise and nationwide presence in the multihousing marketplace resulted in an annual production volume of $9.5 billion in real estate transactions in 2012. For detailed information on ARA’s extensive multihousing investment services, visit www.arausa.com.