Two-Story Townhome Multifamily
For Sale
$840,000
5550 Newland Way, Arvada, CO 80002
Multifamily asset with consistent occupancy, shared outdoor space, on-site laundry, and off-street parking.
Property Size4,182 SF
Days on Market9
Property Features for 5550 Newland Way
General Information
Standard status
Active
Size
4,182 SF
Net Rentable
4,182 SF
Property subtype
Multifamily
Additional Details
Cap Rate
6.66%
Public Transit
Yes
Amenities
on-site laundry room
shared backyard
Building Details
Building Size
4,182 SF
Year Built
1970
Listing Agency:
Pinnacle Real Estate Advisors
Listed By:
Connor Knutson · License #100052573
(303) 962-9567
Source:
Pinnaclerea
Added: Sep 19
Changed: Sep 26
Last Checked: Sep 26 at 4:55AM
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.
This multifamily property contains 4,182 square feet of rentable living space across large two-bedroom, one-and-a-half-bath townhome units. Each unit is arranged over two stories, creating a residential configuration distinct from a conventional apartment layout. The property was built in 1970 and includes an on-site laundry room, shared backyard, and ample off-street parking.
The property is located one mile from the Olde Town Arvada light rail station, providing access toward Downtown Denver. Operating metrics include a 6.66% current cap rate and 0.46% vacancy over the past 12 months. The asset also offers rental upside and is described as well maintained.
The property is located one mile from the Olde Town Arvada light rail station, providing access toward Downtown Denver. Operating metrics include a 6.66% current cap rate and 0.46% vacancy over the past 12 months. The asset also offers rental upside and is described as well maintained.
Key Highlights
- 4,182 square feet of rentable living space
- Large 2‑bedroom, 1.5‑bath townhome units with 2‑story layouts
- 6.66% current cap rate
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
$49,530
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
5.90%
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%
$990,600
$990.6K
Cap Rate 7%
$707,571
$707.6K
Cap Rate 9%
$550,333
$550.3K
Market Conditions
NOI Build-Up for 4,182 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
$97.4K $23.28/SF
− Vacancy
−$7.3K −$1.75/SF
EGI
$90.1K $21.53/SF
− OpEx
−$40.5K −$9.69/SF
NOI
$49.5K $11.84/SF
Area
Arvada, CO
Vacancy
7.50%
Lease Rate
$23.28 /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%
$990,600
Cap Rate 7%
$707,571
Cap Rate 9%
$550,333
Alternative Uses
Best Use
Apartment 5plus
$707.6K
$619.1K – $825.5K
NOI $49,530 @ 7.0% cap · market cap 5.90%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.12M
$978.6K – $1.30M
NOI $78,287 @ 7.0% cap · market cap 9.32%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
1,282
Businesses Nearby
Explore this area
Business Placement
Demographics for 80002, CO
20,267
Population
9,960
Households
2
Avg Household Size
37
Median Age
46%
College-Educated
90%
High-School Grad
6.5 sq mi
ZIP Area
3,118
Density / Sq Mi
$92,827
Median Household Income
$55,044
Median Earnings
$1,733
Median Rent
$538,900
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in West region
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Frequently Asked Questions
What type of property is this?
Multifamily property - Multifamily asset with consistent occupancy, shared outdoor space, on-site laundry, and off-street parking.
Where is this multifamily property located?
The property is located at 5550 Newland Way Arvada, CO.
What is the asking price?
The asking price for this property is $840,000.
What are key features of this property?
This property features: 4,182 square feet of rentable living space; Large 2‑bedroom, 1.5‑bath townhome units with 2‑story layouts; 6.66% current cap rate
