Waterford RiNo Apartments

2797 Wewatta Way, Denver, CO, 80216-3619, US

Description

JLL Capital Markets has been retained as the exclusive advisor in the sale of Waterford RiNo, a 301-unit community situated in the heart of Denver’s eclectic River North (RiNo) neighborhood. Originally constructed in 2012, Waterford RiNo represents the opportunity to acquire a stabilized community with significant value-add upside in one of the fastest growing neighborhoods in the metro. Highly favored by Denver’s discerning, affluent renter, this RiNo location continues to see a significant influx of institutional capital, funding rapid expansion and continued demand for the foreseeable future.

Waterford RiNo comprises a diverse mix of modern studio, one- and two-bedroom floorplans. Select unit interior enhancements have been completed at the property throughout current ownership’s hold period, however the opportunity exists to embark on a full renovation campaign across all units in order to better compete with new deliveries in RiNo that are resetting top of market rents. Significant rental headroom of ± $475 exists between current rent levels at Waterford RiNo and recent deliveries (2023 vintage & newer) within the submarket. Additionally, the community amenity space is extensive, with a resort-style pool, two courtyard areas, rooftop deck, recently refreshed clubhouse, and a spacious state-of-the-art fitness center.

The property’s frontage along Brighton Boulevard, a major thoroughfare connecting the north side of RiNo directly with Denver’s Central Business District, provides the premier live-work-play experience. The Waterford RiNo investment thesis is strong as the property provides unparalleled access to Denver’s most popular restaurants, trendy retailers and lifestyle amenities sitting adjacent to Denargo Market, a public and privately funded future development, combined with a robust value-add opportunity at a significant discount to today’s replacement cost.

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Attributes

Number of units

301

Occupancy

92%

Year built

2012

Building area net

23,481 m²

Land area gross

1.21 ha

Media

Investment Highlights

SIGNIFICANT VALUE-ADD OPPORTUNITY - The current renovation scope at the property presents the opportunity to embark on a full renovation campaign on 100% of the property with a focus on both unrenovated and the lightly renovated units that have been completed by current ownership. This will allow the property to compete with newer product within the class “A” segment of the RiNo submarket as new deliveries continue to reset market rents.
DISCOUNT TO REPLACEMENT COST - Waterford RiNo is offered at a significant discount to today’s replacement cost. Additionally, new affordability legislation within Denver’s core continues to challenge new development presenting a compelling case to acquire existing stabilized product.
COMMERCIAL DEVELOPMENT DRIVES GROWTH - Waterford RiNo is situated adjacent to the Denargo Market Master Plan and a wave of walkable class “A” new office developments that will continue to drive resident demand and retention.
SUPPLY PIPELINE DROPOFF FUELS OUTSIZED FUTURE RENTAL GROWTH - Oncoming supply pipeline in RiNo and the greater CBD has dropped off significantly from peak deliveries. RiNo currently has zero units actively under construction as the submarket continues to quickly absorb units in lease-up.
CLASS A OFFICE DELIVERIES DRIVE RENTAL DEMAND - Recent class “A” office deliveries within the RiNo submarket continue to promote future rental demand. Steel House, T3 RiNo, Paradigm and The Current are all luxury office developments backed by institutional capital that will further fuel growth in the immediate area.
DENVER’S FASTEST GROWING ENTERTAINMENT DISTRICT - Waterford RiNo is situated within the fastest growing entertainment district in the metro. The property’s location allows for walkability to a plethora of bars, restaurants, and entertainment, while also being walkable to Coors Field, Union Station, and LoDo. This infill pedestrian focused location continues to be a hot spot for in-migration to Denver.