Lakewood Multifamily Investment
For Sale
$825,000
5530 W 3rd Pl, Lakewood, CO 80226
Workforce housing asset with income growth potential in central Lakewood.
Property Size3,020 SF
Days on Market134
Property Features for 5530 W 3rd Pl
General Information
Standard status
Active
Size
3,020 SF
Property subtype
Multifamily
Occupancy
95%
Amenities
Workforce housing with attainable rents around $1,300, offering affordability in West Denver near major employment hubs.
All two-bedroom units enable a consistent, repeatable renovation plan that minimizes complexity.
Priced at $206,250/unit, offering an attractive entry point with strong value-add and rent-growth potential.
Building Details
Building Size
3,020 SF
Units
4
Listed By:
Jason Hornik · License #License(s): CO: FA. 100070708
(303) 328-2064
Source:
Marcusmillichap
Added: Apr 24
Changed: Sep 4
Last Checked: Jul 16 at 1:49AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Jason Hornik
Investment Insights
Based on property information with market context.
Located in central Lakewood, 5530 W 3rd Pl offers investors the opportunity to acquire a workforce housing asset. The property has potential for income growth through below-market in-place rents. Modest interior improvements and natural lease rollover may allow a new owner to achieve NOI expansion, delivering yield growth within a stable renter demand segment. The location has a bike score of 62, indicating it is bikeable, a walk score of 48, indicating car-dependence, and a transit score of 35, indicating some transit options are available.
Key Highlights
- Opportunity to increase income through rent increases to market rates.
- Below‑market in‑place rents provide immediate upside potential.
- Potential for NOI expansion through interior improvements and lease rollover.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$38,409
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
4.66%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$768,180
$768.2K
Cap Rate 7%
$548,700
$548.7K
Cap Rate 9%
$426,767
$426.8K
Market Conditions
NOI Build-Up for 3,020 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$74.3K $24.60/SF
− Vacancy
−$4.5K −$1.48/SF
EGI
$69.8K $23.12/SF
− OpEx
−$31.4K −$10.41/SF
NOI
$38.4K $12.72/SF
Area
Lakewood, CO
Vacancy
6.00%
Lease Rate
$24.60 /SF/Yr
Expense Ratio
45.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$768,180
Cap Rate 7%
$548,700
Cap Rate 9%
$426,767
Alternative Uses
Best Use
Apartment 5plus
$548.7K
$480.1K – $640.2K
NOI $38,409 @ 7.0% cap · market cap 4.66%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$904.6K
$791.5K – $1.06M
NOI $63,319 @ 7.0% cap · market cap 7.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
562
Businesses Nearby
Explore this area
Business Placement
Demographics for 80226, CO
33,142
Population
14,742
Households
2.2
Avg Household Size
37
Median Age
38%
College-Educated
90%
High-School Grad
8.1 sq mi
ZIP Area
4,092
Density / Sq Mi
$78,466
Median Household Income
$44,640
Median Earnings
$1,738
Median Rent
$547,000
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Workforce housing asset with income growth potential in central Lakewood.
Where is this apartment building located?
The property is located at 5530 W 3rd Pl Lakewood, CO.
What is the asking price?
The asking price for this property is $825,000.
What are key features of this property?
This property features: Opportunity to increase income through rent increases to market rates.; Below‑market in‑place rents provide immediate upside potential.; Potential for NOI expansion through interior improvements and lease rollover.
