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Granite Capital Group Purchases Kipling Commons, A New Arvada, Colorado Rental Community
Granite Capital Group (GCG), a Santa Barbara, Calif. real estate investment firm with a number of Colorado holdings, has purchased the recently completed Kipling Commons, a 48-unit residential development in Arvada, Colorado.
By: Granite Capital Group, Inc.
Located at 10125 West 72nd Avenue, Kipling Commons consists of six, two-story suburban apartment buildings, each housing eight units. The two-bedroom, two-bath apartments come with one-car detached garages, Class A finishes such as quartz counters, stainless steel appliances, plank LVT hardwood flooring and an in-unit washer and dryer. They range in size from 903 to 1,120 square feet.
Through its GCG Kipling Commons, LP investment fund, GCG purchased the new development in September, with 47 of 48 units leased prior to the close of escrow.
"New construction such as Kipling Commons is attractive to investors because no rehab is required. This lowers investor risk," says BruceSavett, GCG founder and principal. "Maintenance costs associated with new high-end construction are more predictable."
Kipling Commons is designed to appeal to young professionals and families who are priced out of the housing market or choose to rent instead of own and are seeking an alternative to more urban settings. "Demand for housing in Arvada is high," says Savett. "The vacancy rate is under 3 percent. Introducing new housing into the market helps fill a need while making it a smart venture for investors."
Earlier this year, GCG closed initial funding and began developing Fairways at Vista Ridge, a $41.5 million, 14.5-acre, 169-unit single-family rental community in Erie, Colorado's Vista Ridge Master Planned community. Occupancy is expected to start in spring 2017. It is anticipated upon stabilization, the project will return to investors a mid-teen cash on cash return.
"There is little new single family residential construction in the Denver market," says Savett. "This will likely continue. Although a strong jobs market is keeping demand high, construction is getting cost prohibitive. However, the region remains one of the nation's economic bright spots so GCG will continue to seek new residential investment opportunities."
For more information on Kipling Commons and other similar projects, contact Bruce Savett at Bruces@gcg-re.com, 805-259-3040.
About Granite Capital Group
Granite Capital Group, Inc. (GCG), aSanta Barbara, California real estate investment firm, provides accredited investors, trusts, institutions and pensions with access to the commercial real estate market through limited partnerships. Its real estate opportunities are designed to deliver exceptional returns and mitigate risk while focusing on cash flow and asset appreciation. It currently has more than $120 million of assets under management. http://www.gcg-