Multifamily Property with
For Sale
$2,500,000
1609 W Cheyenne Rd, Colorado Springs, CO 80906
Fully leased residential income property with multiple buildings and shared laundry facilities.
Property Size6,617 SF
Price / SF$377.81
Days on Market13
Property Features for 1609 W Cheyenne Rd
General Information
Standard status
Active
Size
6,617 SF
Property subtype
Residential Income
Taxes and HOA fees
Annual Taxes
$5,247
Listing Agency:
ERA Shields Real Estate
(719) 338-1100
Listed By:
Alan Wilaby · License #813495
(719) 338-1100
Source:
Exprealty
Added: Aug 12
Changed: Aug 21
Last Checked: Aug 23 at 5:23AM
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 ERA Shields Real Estate
Investment Insights
Based on property information with market context.
The property comprises a 10-unit apartment building, one cottage, and two duplexes across three schedule numbers. The residences are positioned in a landscaped, tree-filled setting beside the stream in Cheyenne Canyon, west of Cresta Road and near the Broadmoor area. Units have been updated as they become available for re-leasing, and each residence includes miscellaneous appliances with equipment varying by unit.
The larger apartment building provides a coin-operated washer and dryer for tenant use. In the duplexes, tenants own their washer and dryer equipment when provided. The offering includes rental spreadsheets with income allocations available upon request. The property is located at 1609 W Cheyenne Rd, Colorado Springs, CO 80906.
The larger apartment building provides a coin-operated washer and dryer for tenant use. In the duplexes, tenants own their washer and dryer equipment when provided. The offering includes rental spreadsheets with income allocations available upon request. The property is located at 1609 W Cheyenne Rd, Colorado Springs, CO 80906.
Key Highlights
- 10‑unit apartment building included with one cottage and two duplexes
- Fully leased residences with updates completed as units return to the leasing cycle
- Tree‑filled residential setting beside the stream in Cheyenne Canyon
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
$87,585
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
3.50%
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%
$1,751,700
$1.8M
Cap Rate 7%
$1,251,214
$1.3M
Cap Rate 9%
$973,167
$973.2K
Market Conditions
NOI Build-Up for 6,617 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
$131.0K $19.80/SF
− Vacancy
−$5.9K −$0.89/SF
EGI
$125.1K $18.91/SF
− OpEx
−$37.5K −$5.67/SF
NOI
$87.6K $13.24/SF
Area
ZIP 80906
Vacancy
4.50%
Lease Rate
$19.80 /SF/Yr
Expense Ratio
30.00%
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%
$1,751,700
Cap Rate 7%
$1,251,214
Cap Rate 9%
$973,167
Alternative Uses
Best Use
Multifamily LT 5
$1.25M
$1.09M – $1.46M
NOI $87,585 @ 7.0% cap · market cap 3.50%
Second Best
Apartment 5plus
$1.16M
$1.01M – $1.35M
NOI $81,166 @ 7.0% cap · market cap 3.25%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
224
Businesses Nearby
Explore this area
Business Placement
Demographics for 80906, CO
39,019
Population
16,771
Households
2.3
Avg Household Size
39
Median Age
49%
College-Educated
95%
High-School Grad
45.6 sq mi
ZIP Area
856
Density / Sq Mi
$88,047
Median Household Income
$47,314
Median Earnings
$1,634
Median Rent
$543,400
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 - Fully leased residential income property with multiple buildings and shared laundry facilities.
Where is this apartment building located?
The property is located at 1609 W Cheyenne Rd Colorado Springs, CO.
What is the asking price?
The asking price for this property is $2,500,000.
What are key features of this property?
This property features: 10‑unit apartment building included with one cottage and two duplexes; Fully leased residences with updates completed as units return to the leasing cycle; Tree‑filled residential setting beside the stream in Cheyenne Canyon
