Whisper Creek Apartments_Property for Sale

3505 South Nelson Circle, Lakewood, CO, 80235, US

Whisper Creek Apartments

Asset Description

JLL has been retained as the exclusive investment advisor in the sale of Whisper Creek Apartment Homes (“Whisper Creek”), a 272-unit garden style community situated within the desirable Lakewood submarket. Originally completed in 2002 and situated within one of Denver’s most sought after and supply constrained submarkets, the acquisition of Whisper Creek presents an exceptional opportunity to complete a value add program across 100% of the property. Whisper Creek’s reputation as an established property in a high-demand submarket presents the thesis to add value through community amenity enhancements and a comprehensive in-unit renovation campaign to more effectively compete with recently renovated and newly completed assets within the area. Rents at Whisper Creek are ± $200-$300 below newer or recently renovated competition, on average.

Whisper Creek sits within the Lakewood submarket, one of the lowest supplied and strongest areas for housing fundamentals within metro Denver, shown by the 4.9% average annual rent growth since 2018. Rental growth has been driven by resident demand in the area, but also by growth ordinances that have resulted in Lakewood’s insulation from new multifamily development - there are zero new multifamily units under construction and only 565-units in total have been delivered within the submarket since 2020.

These property level and locational characteristics pair well with the strong demographics surrounding Whisper Creek, with an average home price and household income of ± $700K and ± $170K (within a three-mile radius), respectively. Furthermore, the asset’s placement within the highly ranked Jefferson County School District, will continue to serve as a catalyst for resident demand at Whisper Creek while simultaneously creating a sticky existing resident base as the growing sentiment of “renting for longer” has solidified across the metro area. These aforementioned attributes build the runway for Whisper Creek to experience outsized renter demand and continued economic expansion for the foreseeable future and solidify Whisper Creek as one metro Denver’s most compelling value-add investment opportunities of scale.

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Attributes

Number of units

272

Occupancy

95%

Year built

2002

Building area net

23,455 m²

Land area gross

6.38 ha

Media

Investment Highlights

COMPREHENSIVE VALUE-ADD OPPORTUNITY

Originally completed in 2002, 100% of unit interiors are well primed for a comprehensive in-unit renovation campaign targeting the completion/standardization of all unit interiors and enhancements within community amenity areas, positioning the asset in range with its relevant competition. Current unit interiors feature: laminate countertops, drop-in sinks and outdated plumbing fixtures, cabinet hardware and lighting fixtures. Given the housing fundamental runway experienced in the Lakewood area over the past few years, rents at Whisper Creek are ±$200-$300 below newer or recently renovated competition (on average), boasting a compelling case for a complete community refresh at Whisper Creek.

EASE OF ACCESS TO CRITICAL EMPLOYMENT NODES

Boasting convenient access to both C-470 and US-285, two of Denver’s most prominent transportational arteries, Whisper Creek is a short commute to several of metro Denver’s largest employment centers including; Denver Federal Center, Denver West, Denver CBD, and the Southeast Business Corridor.

LIMITED SUPPLY PIPELINE PROMOTES FUTURE ELEVATED FUNDAMENTALS

The Lakewood submarket historically has and continues to be one of the most housing constrained markets in all of metro Denver for new development due to a 1% Growth-Cap Housing Ordinance which was passed in 2019 and remains instated through August 2025. In turn, the Lakewood submarket features zero multifamily projects currently under construction, with only 565-units in total delivered within the submarket since 2020. As elevated construction costs and an increasing capital markets environment continue to challenge the broader development market, existing stabilized product is optimally positioned to capture stable rental growth for the foreseeable future.

AFFLUENT NEIGHBORHOOD DEMOGRAPHICS & STRONG SCHOOLS PROMOTE ELEVATED RENTAL DEMAND

Owning a home in Whisper Creek’s surrounding area, comes at a 138%premium to renting at the property, with an average home price and household income of ± $700K and ± $170K (within a three-mile radius), respectively. Furthermore, the asset’s placement within the Jefferson County School District, which consistently ranks at the top of school districts within the metro, will continue to serve as a catalyst for new high-quality tenancy at Whisper Creek while simultaneously creating a sticky existing tenant base as the growing sentiment of “renting for longer”.

STRONG MISSION DRIVEN AGENCY FINANCING CANDIDATE

Strong demographics surrounding Whisper Creek boast significant naturally occurring affordability positioning the asset as a strong candidate for mission driven financing via the agencies.