East Colfax Multifamily
For Sale
Contact for pricing
8400 E Colfax Ave, Denver, CO 80220
25-unit multifamily property on East Colfax, redevelopment potential.
Property Size8,421 SF
Lot Size0.50 Acres
Price / SF$330.13
Days on Market1295
Property Features for 8400 E Colfax Ave
General Information
Standard status
Active
Size
8,421 SF
Lot size
0.50 Acres
Property subtype
Hospitality
Zoning
E-MS-3
Building Details
Year Built
1953
Year Renovated
2021
Buildings
1
Stories
2
Listing Agency:
Hoff & Leigh
(715) 512-0265
Listed By:
Brandon Langiewicz · License #CO FA100067372
Source:
Crexi
Added: Feb 6, 2023
Changed: Aug 12
Last Checked: Aug 23 at 1:07PM
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 Hoff & Leigh
Investment Insights
Based on property information with market context.
This property presents an opportunity on East Colfax. Currently operating as a 25-unit multifamily property utilized for artist housing, it sits on nearly a half acre. The location offers potential for continued use as multifamily, conversion back to a motel, or redevelopment. The property is situated on a visible corner. The current Net Operating Income (NOI) is $202,850.61, with a proforma NOI of $227,150.61. The current capitalization rate is 7.3%, and the proforma capitalization rate is 8.17%. The property size is 8,421 square feet.
Key Highlights
- High visibility corner location on E Colfax.
- Currently operating as a 25‑unit multifamily property with existing income.
- Significant income potential with a current NOI of $202,850.61 and a proforma NOI of $227,150.61.**
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
$127,861
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
4.60%
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%
$2,557,220
$2.6M
Cap Rate 7%
$1,826,586
$1.8M
Cap Rate 9%
$1,420,678
$1.4M
Market Conditions
NOI Build-Up for 8,421 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
$247.6K $29.40/SF
− Vacancy
−$15.1K −$1.79/SF
EGI
$232.5K $27.61/SF
− OpEx
−$104.6K −$12.42/SF
NOI
$127.9K $15.18/SF
Area
Denver, CO
Vacancy
6.10%
Lease Rate
$29.40 /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%
$2,557,220
Cap Rate 7%
$1,826,586
Cap Rate 9%
$1,420,678
Alternative Uses
Best Use
Apartment 5plus
$1.83M
$1.60M – $2.13M
NOI $127,861 @ 7.0% cap · market cap 4.60%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.68M
$2.35M – $3.13M
NOI $187,650 @ 7.0% cap · market cap 6.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
770
Businesses Nearby
Explore this area
Business Placement
Demographics for 80220, CO
37,233
Population
17,675
Households
2.1
Avg Household Size
37
Median Age
66%
College-Educated
94%
High-School Grad
5.2 sq mi
ZIP Area
7,160
Density / Sq Mi
$101,961
Median Household Income
$61,568
Median Earnings
$1,621
Median Rent
$739,600
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 - 25-unit multifamily property on East Colfax, redevelopment potential.
Where is this apartment building located?
The property is located at 8400 E Colfax Ave Denver, CO.
What is the asking price?
The asking price for this property is $2,780,000.
What are key features of this property?
This property features: High visibility corner location on E Colfax.; Currently operating as a 25‑unit multifamily property with existing income.; Significant income potential with a current NOI of $202,850.61 and a proforma NOI of $227,150.61.**
