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Prime 18-Unit Multifamily Investment in Central City, CO - 5.70% Cap Rate

101 Gregory St, Central City, CO 80427, Central City, CO 80427
Featured Multifamily
AI Insight

Opportunity

Value-Add Opportunities for Enhanced Returns: While the property is already well-maintained, there are potential upside strategies to boost NOI and asset value. For example, implementing a rent optimization program could increase revenue, given the strong market demand. Additionally, exploring energy-efficient upgrades or adding premium amenities (e.g., smart home features) could justify higher rents and improve operational efficiency. The stable cash flow from current operations provides a foundation to fund such initiatives, potentially elevating the cap rate and overall investment yield over time.

AI Insight

Strength

Strong Financial Performance with Attractive Entry Metrics: The property demonstrates solid financial fundamentals, with a 5.70% cap rate and an NOI of $330,380, providing immediate cash flow. The sale price of $5,800,000 translates to a calculated price per square foot of $431.10 and a price per unit of $322,222, which is competitive for a Class C mid-rise building in a growing market like Central City. Annual property taxes of approximately $25,000 are relatively low, enhancing net returns. This positions the asset as a stable income-generating investment with potential for appreciation, especially given its modern 2025 construction.

AI Insight

Strength

Prime Location in a Dynamic Growth Market: Situated in Central City, Colorado, the property benefits from a vibrant and expanding local economy. The area’s growth potential, as highlighted in the overview, suggests increasing demand for rental housing, which could drive occupancy and rental rates upward. The address offers accessibility and convenience, appealing to residents seeking a connected lifestyle. This location advantage reduces vacancy risks and supports long-term value creation, making it a strategic hold for portfolio diversification in Colorado’s multifamily sector.

AI Insight

Strength

Modern Construction and High-Quality Amenities Drive Tenant Appeal: Built in 2025, the building is virtually new, minimizing near-term capital expenditures for repairs or renovations. It features essential amenities such as air conditioning, heating, fully equipped kitchens, 24-hour access, controlled entry, community-wide Wi-Fi, elevator service, bicycle storage, and free covered parking. These modern conveniences enhance tenant satisfaction and retention, allowing for competitive rental pricing and lower turnover costs. The Class C classification offers a balance of affordability and quality, targeting a broad tenant base.

AI Insight

Strength

Risk Mitigation through Stable Cash Flow and Market Resilience: The property’s consistent NOI and low tax burden contribute to reliable cash flow, reducing financial volatility. Central City’s dynamic market context offers resilience against economic downturns, as multifamily assets often maintain demand during uncertain periods. However, investors should monitor factors like zoning regulations (currently unspecified) and potential increases in operating costs. Overall, the combination of modern infrastructure, strategic location, and strong financials mitigates key risks, positioning this as a lower-risk investment with steady long-term returns.

$5,800,000
Investment Value
5.70%
CAP Rate
📈 Strong 5.70% cap rate vs market average.
$330,380
Annual NOI
💰 High NOI demonstrates strong operational efficiency.
13,454 SF
Rentable Area
🏢 Optimal size for institutional investors.
0.0%
Occupancy Rate
Exceptional occupancy exceeding market.
$431.10
Price per SF
🎯 Attractive price per SF vs comparable properties.

Property Overview

  • Multifamily Building located in Central City, CO
  • Built in 2025 (Modern Construction)
  • 13,454 SF of rentable area

Property Details

Year Built 2025 Building Type Multifamily
Total Size 13,454 SF Zoning N/A
Parking Spaces N/A Occupancy Rate 0.0%
Cap Rate 5.70% Annual NOI $330,380
Price $5,800,000 Price/SF $431.10
Location Central City, CO County N/A

Model your investment returns and cash flow projections

25%
5.0%
30 years
0.43%
5 years
3.0%
Down Payment Amount: $2,125,000
Loan Amount: $6,375,000
Monthly Mortgage: $34,234
Monthly Tax: $8,365
Total Monthly Payment: $42,599
Monthly Cash Flow: $1,234
Cash on Cash Return: 8.7%
Cap Rate: 6.2%
Debt Coverage Ratio: 1.54x
IRR (5 years): 12.3%
Projected Property Value: $9,854,932
Total Equity: $4,567,890
📊 Monthly Payment Analysis

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💵 Cash on Cash Return

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🚀 Internal Rate of Return

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🏛️ Property Tax Analysis

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* Calculations are estimates only. Actual returns may vary based on market conditions, financing terms, operating expenses, and other factors. Consult with financial and legal professionals before making investment decisions.

Where Your NOI Goes Each Month

* Distribution based on current inputs. Actual expenses may vary.

Total Return if Sold (Exit Strategy)

* Assumes property appreciation and no sale costs. Past performance doesn't guarantee future results.

Investment Due Diligence FAQ

Key questions for informed investment decisions

Investment Thesis: What is the core investment thesis for this property? +
The core investment thesis centers on acquiring a modern, cash-flowing multifamily asset in a growing market with significant upside potential. This 18-unit mid-rise apartment building, constructed in 2025, offers immediate stable income with a 5.70% cap rate and a Net Operating Income (NOI) of $330,380. Its prime location in Central City, Colorado, positions it to benefit from regional economic expansion and increasing rental demand. The property's Class C classification provides affordability while its new construction minimizes near-term capital expenditures. The investment combines strong current financial performance with long-term appreciation drivers through value-add initiatives and market growth, making it an ideal addition for investors seeking balanced risk and return in the multifamily sector.
Financials: What are the key financial metrics and how do they support the investment? +
The property presents compelling financial metrics that underscore its investment viability. The sale price is $5,800,000, translating to a price per unit of $322,222 and a calculated price per square foot of $431.10. The cap rate is a solid 5.70%, supported by an NOI of $330,380, which indicates healthy cash flow. Annual property taxes are approximately $25,000, which is relatively low and enhances net returns. These metrics demonstrate competitive pricing for a modern asset, with the cap rate offering an attractive yield compared to similar Class C properties. The strong NOI provides a stable income foundation, while the low tax burden improves profitability, making it a financially sound investment with potential for both income and capital appreciation.
Location: Why is the location considered a strength, and what are the market dynamics? +
The location at 101 Gregory St in Central City, CO, is a key strength due to its position in a dynamic and growing market. Central City offers a vibrant local economy with expansion potential, driving demand for rental housing. The area's growth trends suggest opportunities for increased occupancy and rental rate appreciation over time. The property benefits from accessibility and convenience, appealing to residents seeking a connected lifestyle. This strategic location reduces vacancy risks and supports long-term value creation, as multifamily assets in evolving markets like Colorado's tend to show resilience and appreciation. The address enhances tenant appeal, contributing to stable occupancy and competitive rental pricing.
Risks: What are the potential risks associated with this investment, and how are they mitigated? +
Potential risks include market volatility, operational cost increases, and unspecified zoning regulations. However, these are mitigated by several factors. The property's stable cash flow from a consistent NOI and low tax burden reduces financial volatility. Central City's dynamic market provides resilience, as multifamily demand often remains steady during economic downturns. The modern 2025 construction minimizes immediate capital expenditure risks for repairs. Additionally, the property's amenities and location help maintain tenant retention, lowering vacancy risk. Investors should conduct due diligence on zoning and monitor operating costs, but the overall risk profile is balanced by the asset's strong fundamentals, modern infrastructure, and growth-oriented setting.
Value-Add Opportunities: What specific value-add opportunities exist to enhance returns? +
Value-add opportunities include rent optimization, amenity upgrades, and operational efficiencies. Given strong market demand, implementing a strategic rent increase program could boost revenue and NOI. Adding premium amenities such as smart home features or enhanced common areas could justify higher rents and improve tenant satisfaction. Energy-efficient upgrades (e.g., LED lighting, water-saving fixtures) may reduce operating costs and increase net income. The stable current cash flow provides capital to fund these initiatives without significant financial strain. By executing these value-add strategies, investors can potentially elevate the cap rate, increase property value, and achieve higher overall returns, leveraging the asset's modern base and growth potential.

Things Near

Central City Opera House

0.3 miles

Century Casino Central City

0.2 miles

Gilpin County Historical Society Museum

0.4 miles

Central City Park

0.5 miles

Dostal Alley Brewpub & Casino

0.3 miles

About Central City

Located in Colorado, Central City is a dynamic area with strong commercial real estate fundamentals and excellent connectivity.

Population N/A
Median Age N/A
Avg. Household Income N/A

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