AURORA, CO-Keller Williams broker Jarket Tadla paid $650,000, or $29,545 per unit, for the 22-unit, Montview Apartment building at 9870 Montview Ave., three blocks from the Stapleton redevelopment by Forest City. The assessed value of the building, according to documents obtained by GlobeSt.com, is $840,318. It's rare in the Denver area that an apartment building sells for less than its assessed value. The building consists of studio, one- and two-bedroom units with a total of 12,150 sf.
"This was a tough one," says Tim von Storch, the broker with Apartment Realty Advisors who represented the seller, Russell Norris. "There were only four tenants living there. There was a lot of deferred maintenance. No buyer could get a loan on it, so the buyer paid all cash. The seller was happy--he did quite well--but it is a tough part of town."
On the other hand, it is a "great opportunity for a rehab investor in a dynamic market," as Forest City redevelops Stapleton, von Storch says. "The buyer really believes that the Montview-Stapleton area is really going to be the gateway into Northeast Aurora."
Still, there's a risk. "Again, it was in pretty rough shape," von Storch tells GlobeSt.com. "That area has been really hit hard. Vacancies in the 20% to 30% are not uncommon. It has its challenge."
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