Denver Multifamily Investment
For Sale
$3,600,000
Pending
2940 W Arkansas Ave, Denver, CO 80219
High-demand Denver submarket with strong cash flow and value-add potential.
Property Size18,482 SF
Days on Market132
Property Features for 2940 W Arkansas Ave
General Information
Standard status
Pending
Size
18,482 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$22,548
Building Details
Building Size
18,482 SF
Year Built
1961
Stories
2
Units
20
Listing Agency:
Pinnacle Real Estate Advisors
(303) 962-9543
Listed By:
Jim Knowlton · License #FA100032419
(303) 962-9543
Source:
Elliman
Added: Apr 24
Changed: Aug 8
Last Checked: Jul 31 at 3:37PM
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 Pinnacle Real Estate Advisors
Investment Insights
Based on property information with market context.
Ponderosa Apartments presents a multifamily investment opportunity in a transit-oriented Denver submarket. The property features a 7% CAP rate based on trailing 12-month numbers. Critical capital improvements have been recently completed, including a new boiler system, a full electrical upgrade with replacement of all electrical panels, and resurfacing of the asphalt parking lot. The unit mix consists of two-bedroom and three-bedroom floor plans. The property has a proven value-add track record, with 50% of the units fully renovated. These renovated units feature new flooring, cabinets, countertops, appliances, and full bathroom remodels. A new owner can renovate the remaining classic units to capture additional upside and drive net operating income. The property has updated windows and a newer roof. The property is bikeable with a score of 64, very walkable with a score of 75, and has some transit with a score of 46. The property consists of nineteen 2-bedroom, 1-bath units and one 3-bedroom, 2-bath unit.
Key Highlights
- Exceptional 7% CAP rate provides immediate and robust cash flow.
- Significant reduction in risk due to recent major infrastructure improvements.
- Proven value‑add track record with 50% of units already fully renovated.
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
$248,553
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
6.90%
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%
$4,971,060
$5.0M
Cap Rate 7%
$3,550,757
$3.6M
Cap Rate 9%
$2,761,700
$2.8M
Market Conditions
NOI Build-Up for 18,482 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
$481.3K $26.04/SF
− Vacancy
−$29.4K −$1.59/SF
EGI
$451.9K $24.45/SF
− OpEx
−$203.4K −$11.00/SF
NOI
$248.6K $13.45/SF
Area
ZIP 80219
Vacancy
6.10%
Lease Rate
$26.04 /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%
$4,971,060
Cap Rate 7%
$3,550,757
Cap Rate 9%
$2,761,700
Alternative Uses
Best Use
Apartment 5plus
$3.55M
$3.11M – $4.14M
NOI $248,553 @ 7.0% cap · market cap 6.90%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$5.27M
$4.61M – $6.15M
NOI $369,049 @ 7.0% cap · market cap 10.25%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
710
Businesses Nearby
Explore this area
Business Placement
Demographics for 80219, CO
61,585
Population
21,729
Households
2.8
Avg Household Size
33
Median Age
22%
College-Educated
72%
High-School Grad
7.4 sq mi
ZIP Area
8,322
Density / Sq Mi
$67,325
Median Household Income
$41,153
Median Earnings
$1,464
Median Rent
$426,200
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Apartment building - High-demand Denver submarket with strong cash flow and value-add potential.
Where is this apartment building located?
The property is located at 2940 W Arkansas Ave Denver, CO.
What is the asking price?
The asking price for this property is $3,600,000.
What are key features of this property?
This property features: Exceptional 7% CAP rate provides immediate and robust cash flow.; Significant reduction in risk due to recent major infrastructure improvements.; Proven value‑add track record with 50% of units already fully renovated.
