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New Construction 18-Unit Multifamily Asset in Central City, CO - 5.70% Cap Rate

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

Opportunity

Rent Growth Potential: As a new build in Central City, there is opportunity to align rents with market rates or slightly above, given the modern amenities and lack of comparable new inventory.

AI Insight

Opportunity

Value-Add through Operational Efficiency: Implementing smart home technology or green initiatives (e.g., energy-efficient appliances) could further reduce operating expenses and attract environmentally conscious tenants.

AI Insight

Opportunity

Market Expansion: Central City’s dynamic growth suggests increasing demand for quality multifamily housing, positioning this property for long-term appreciation.

AI Insight

Risk

Class C Designation: Class C properties may face higher tenant turnover or sensitivity to economic downturns compared to Class A/B assets, requiring proactive management.

AI Insight

Risk

Missing Parking Ratio: Lack of parking data could indicate limited parking availability, potentially affecting tenant appeal in a car-dependent region.

AI Insight

Risk

Market Concentration: Reliance on Central City’s local economy—without diversification—exposes the investment to regional economic fluctuations.

AI Insight

Strength

New Construction Advantage: Built in 2025, this asset eliminates near-term capital expenditure risks (e.g., roof, HVAC, structural repairs), providing a modern, move-in-ready product that appeals to tenants and reduces maintenance costs.

AI Insight

Strength

Strong Financial Performance: With a cap rate of 5.70% and an NOI of $330,380, the property offers stable cash flow. The calculated price per square foot of $431.10 is competitive for a Class C mid-rise in a growing market.

AI Insight

Strength

Premium Amenities Package: Features like 24-hour controlled access, community-wide Wi-Fi, elevator service, and bicycle storage enhance tenant satisfaction, supporting higher retention rates and potential rent premiums.

AI Insight

Strength

Efficient Unit Design: Each unit includes full kitchens, air conditioning, heating, and safety features (smoke detectors), meeting contemporary rental demands.

$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
1.18%
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 newly constructed (2025), Class C multifamily asset that offers stable cash flow with long-term appreciation potential in a growing Central City market. This 18-unit mid-rise apartment building combines the advantages of modern construction—minimizing near-term capital expenditures—with strong financial metrics, including a 5.70% cap rate and an NOI of $330,380. The property features a premium amenities package (e.g., 24-hour controlled access, community-wide Wi-Fi, elevator, bicycle storage) designed to enhance tenant satisfaction and retention. As a "New Construction Asset" in a "Prime Location," it targets investors seeking immediate income generation from a turnkey property with upside through operational efficiencies and rent growth in a dynamic Colorado market.
Financials: What are the key financial metrics and how do they support the investment? +
Key financial metrics include a sale price of $5,800,000, translating to a price per unit of approximately $322,222 and a calculated price per square foot of $431.10. The cap rate of 5.70% and Net Operating Income (NOI) of $330,380 underscore the property's income-generating strength, providing a solid foundation for cash flow. These metrics indicate a competitive valuation for a Class C asset in this region, with the cap rate aligning with market averages for similar properties. The financials support the investment by offering a balanced risk-return profile: the NOI ensures consistent operational income, while the new construction status reduces maintenance costs, potentially boosting net returns over time. Investors can model cash flow with conservative rent increases to project attractive yields.
Location: Why is Central City, CO a strategic location for this multifamily investment? +
Central City, Colorado, is experiencing growth driven by its appeal as a residential hub with access to urban amenities and natural attractions, creating proven demand for quality rental housing. The property at 101 Gregory St benefits from this dynamic local market, positioning it to attract key demographic segments like young professionals and small families. The "Prime Location" tag highlights its strategic advantage in a region with sustained rental demand and development potential. While specific zoning and transportation details are not provided, the area's overall trajectory supports long-term appreciation and occupancy stability, making it a compelling market for multifamily investments focused on both immediate cash flow and future value growth.
Risks: What are the primary risks associated with this property, and how can they be mitigated? +
Primary risks include the Class C designation, which may lead to higher tenant turnover or sensitivity to economic downturns compared to higher-class assets; missing parking ratio data, which could indicate limited parking availability affecting tenant appeal in a car-dependent region; and market concentration reliance on Central City's local economy, exposing the investment to regional fluctuations. Mitigation strategies involve proactive property management to enhance tenant retention through the existing amenities package (e.g., controlled access, Wi-Fi), conducting due diligence to verify parking availability and adjust marketing if needed, and diversifying the tenant base with flexible lease terms to maintain occupancy. Additionally, monitoring local economic indicators and implementing cost-control measures can help insulate against market volatility.
Value-Add Opportunities: What value-add opportunities exist to enhance this property's returns? +
Value-add opportunities include rent growth potential by aligning rents with market rates or slightly above, given the modern amenities and lack of comparable new inventory in Central City; operational efficiency improvements through smart home technology or green initiatives (e.g., energy-efficient appliances) to reduce operating expenses and attract environmentally conscious tenants; and strategic asset management enhancements, such as implementing technology-driven systems for online rent payment and maintenance requests, to boost NOI over time. The "Modern Amenities Package" provides a foundation for tenant satisfaction, but further upgrades could justify rent premiums. Investors can also explore minor cosmetic updates or community programs to increase retention and overall property value, leveraging the new construction advantage for minimal immediate capital outlay.

Things Near

Central City Opera House

0.3 miles

Teller House

0.2 miles

Central City Parkway

1.5 miles

Black Hawk Casino District

2.0 miles

Arapaho National Forest

5.0 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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