Willow Point Townhomes built in 2016 on approximately 8.57 acres, offers large 2-bedroom and 3-bedroom townhome style units averaging 1,504 square feet without neighboring units above. Interior units include attached 2-car garages, private patios, stainless steel appliances, quartz countertops, full-size washers & dryers, and select units with study rooms while the community offers a pool, spa, dog wash, and playground. Located within the highly desirable Cherry Creek School District, one of Denver’s top two highest-ranked school districts, residents enjoy access to one of the top-ranked school districts in Metro Denver.
In addition, the asset’s strategic location also offers residents convenient access to Denver’s major employment centers in the Southeast Business Corridor, Fitzsimons Medical Campus, and Downtown Denver CBD while also offering proximity to retail shopping centers and major highways. Colorado continues to be ranked as one of the top in-migration states throughout the country. The state has added 760,000 people since 2010, the eighth-highest in the country. In addition, major employment sectors and hubs are available to residents within Colorado.
Colorado has the nation’s second-largest aerospace economy, has one of the fastest-growing technology sectors in the nation, and Denver is the largest financial center between Chicago and Los Angeles. With its continued population and economic growth, Colorado ranks as the #4 state in the United States where GDP has grown the most over the years. Since 2000, Colorado’s real GDP has grown by more than half from $232.83 billion to $351.07 billion in 2020. Denver also continues to be ranked high in terms of the best places to live, labor supply, the best place for businesses and careers, and the fastest-growing city throughout the nation.
The Southeast Denver submarket, where Willow Point Townhomes is located per Axio Metrics, has seen rent growth of 7.97% in 2021 and is projecting rent growth of 12.88% in 2022, 6.68% in 2023, and 5.15% in 2024. Its neighboring submarket, Southwest Aurora and Glendale are seeing similar rent growth. In addition, there is a limited supply of new inventory coming onto the market. The Southeast Denver, Southwest Aurora, and Glendale submarkets combined have delivered 355 new units in 2019, 470 units in the Year 2020, and 392 units in the Year 2021 and with 0 new units to be delivered in the Years 2022 and Year 2023 as of now per Axio Metrics.
The asset has been well maintained since it was built in 2016 but operationally has been mismanaged by current ownership with current in-place rents well below market rents by approximately $300. With our large footprint in Denver (we currently own over 2,700 units) and our outstanding relationship with our third-party management company AMC, we see upside in increasing rents to market and see the potential for additional “fee income” that is not currently being achieved at the property. Combined with improving operational efficiencies, market rent growth, limited new inventory, and the increasing demand for single-family rentals, Willow Point Townhomes will continue to foster demand and growth.