17025 E Carlson Ddrive, Parker, CO, 80134, US

Cherrywood Village

Asset description

JLL Capital Markets has been retained as the exclusive advisor in the sale of Cherrywood Village Apartments (“Cherrywood Village”), a 360-unit multi-housing community situated in the exclusive suburban enclave of Parker, CO. Originally completed in 2002, the acquisition of Cherrywood Village presents the opportunity to acquire immediate scale in the supply constrained affluent Parker submarket ($150K+ average 3-mile HH income). The property is nestled just south of E-470, providing ease of access to every major employment hub within the metro including local employment nodes, the Southeast Business Corridor, Cherry Creek, and Downtown Denver (encompassing over 415,000 employees).

Cherrywood Village was institutionally built and has remained institutionally owned and managed since delivery. Current unit interior finishes are in classic condition, allowing a new owner to complete a value add campaign on 100% of unit interiors. Renovation premiums can be realized through focused unit interior upgrades as in-place rent levels at Cherrywood Village remain at a significant discount in comparison to new product in Parker, the Denver Tech Center, and surrounding submarkets. Current ownership has focused capital intensively on community amenity upgrades such as a complete clubhouse renovation and gym enhancement, allowing a new owner to shift focus to further revenue generating unit interior upgrades.

Strong locational attributes, stable historical performance, ample value-add upside, and robust demographics surrounding the area all combine to make Cherrywood Village a compelling value-add investment offering.

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Attributes

Units

360

Occupancy

95%

Year built

2002

Building area net

30,002 sm

Land area net

6.84 ha

Media

Investment highlights

EASE OF ACCESS TO LOCAL EMPLOYMENT

Situated along the prominent E-470 Corridor, Cherrywood Village allows residents access to all local Parker area employment including Sky Ridge Medical Center, Advent Health Parker and Denver’s major employment hubs in the Southeast Business Corridor, Cherry Creek, and Denver’s Urban Core.

SURROUNDED BY A PLETHORA OF RECREATIONAL AMENITIES

Cherrywood Village’s ideal location is surrounded by multiple retail corridors along E-470 & Parker Road. Prominent retail includes a soon to be delivered Whole Foods, Costco, King Soopers, Trader Joes, Lifetime Fitness, and more.

STRONG SURROUNDING DEMOGRAPHICS

Cherrywood Village boasts strong surrounding demographics and the A Rated Douglas County School District (Chaparral High and Challenger to Excellence K-8 Charter, both of which are A rated).

ATTRACTIVE VALUE-ADD UPSIDE

The current unit interior finish level at Cherrywood Village presents the opportunity for a full renovation of all 360 units. Existing unit finishes consist of laminate countertops, outdated cabinets, carpeted living areas and outdated lighting fixtures. The opportunity exists for a comprehensive renovation program touching 100% of units in order to compete with new and recently renovated product within the area.

SIGNIFICANT FUTURE RENTAL RUNWAY

In-place rents at Cherrywood Village have a significant delta to new product in the Parker and nearby Denver Tech Center submarkets ($250-400/unit/month delta). This in-place rental disparity allows for significant future rent growth potential as the current rent to area income ratio is only 14%.

MISSION DRIVEN AGENCY FINANCING AVAILABLE

Given the elevated household incomes within the area, current in-place rent levels at Cherrywood Village promote a favorable mission driven agency financing execution as nearly 90% of the rent roll is at or below 80% of AMI.