Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the TIC market, click here.)

DENVER-Tenant-in-common, or TIC, investment pools, are becoming increasingly popular in Denver and across the country as a way of buying investment real estate. TICs are buying everything from class A properties to more mom and pop deals, where small investors are looking to defer paying taxes through 1031 exchanges by investing in TICs, where each investor owns an undivided, or common, interest in the property.

In one of the most recent latter cases, an unidentified California-based TIC paid $3.35 million, for the 54-units Pecos Gardens at 7479, 7509 and 7549 Pecos St. That equates to $62,037 per unit. It also is about 12% more than the assessed value of the property, according to records obtained by GlobeSt.com. The sale price equates to $137.50 per sf.

The seller, Robert B. Carson, owned and managed the property for almost 30 years. Pecos Gardens had a history of high occupancies and rents because of its excellent condition, says Frank Farrell, the broker with the Denver office of Hendricks & Partners, who handled the sale.

Many long-time, small apartment owners in the Denver area have been reluctant to sell because they didn’t want to pay capital gain taxes on their holdings, brokers tell Globest.com. However, TIC deals like this, which allows them to pool money with other investors and defer taxes, makes it easy for them to re-invest their profits in other income yielding real estate deals at a time when there is a huge appetite from investors.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper


GlobeSt. Multifamily Spring 2022 (Formerly APTS)Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.