Repositioned Apartments Score Big NOI Bump
After a four-year renovation and repositioning, the 193-unit Apartments at Denver Place above the Ritz-Carlton in Downtown were sold to Chicago-based Waterton Residential for an undisclosed sum. Seminole Investment Advisors was the seller, and ARA’s Jeff Hawks brokered the deal. Even though Denver apartment rent increases are strong (nearly 10% year-over-year, according to Zillow), it doesn't mean a property will gain without a concerted repositioning, says Marquette Management CEO Nick Ryan (snapped at more than 10,800 feet). The previous owner tapped Marquette to bring the Apartments at Denver Place up to speed.
Nick says the updates to the apartments on floors 20 through 37 brought a 72% increase in the property's NOI and 76% bump in the appraised value. The improvements were physical (revamped interiors and common areas) and also had the addition of concierge services to be more in line with the upmarket branding of the Ritz-Carlton floors. The new offerings include services like dry cleaning pick-up, package acceptance, and vacationing services, he tells us.