Wonderland Creek Townhomes trades in $21 million deal

Wonderland Creek Townhomes
Wonderland Creek Townhomes offered the buyer upside in boosting occupancy.

A townhome-style apartment community in Boulder sold to a California buyer for $21 million, or $512,195 per unit.

Wonderland Creek Townhomes, located at 3701 Paseo del Prado, was developed and sold by WCT LLC, a partnership of Scott Woodward of Boulder and Brinkman Partners. Eng-Skell Co. was the buyer, according to Boulder County records.

The community was completed in 2017 and was 78 percent leased, offering the opportunity to increase income by leasing up the vacant units.

“The buyer saw the upside and wanted to own in Boulder – obviously a tremendous market with high barriers to entry,” said Justin Hunt, executive managing director with Newmark Knight Frank Multifamily, which handled the sale. Wonderland Creek Townhomes average 1,205 square feet and feature condo-quality construction, said Hunt, who handled the sale with Andy Hellman, also of NKF Multifamily.

The 41-unit community has six three-bedroom, two-bath units. The rest are two-bedroom, two-bath floor plans. Each unit has either an attached or detached garage.

“We saw buyers from all over the country that looked at it,” said Hunt. Newmark Knight Frank Multifamily has sold around $326 million worth of apartment properties in Boulder since 2016 and typically sees national and even international buyers. “It’s on everyone’s radar. It’s a unique market in Colorado,” Hunt said.

Wonderland Creek Townhomes includes high-end finishes, large balconies and patios, double master bedrooms, first-floor powder rooms, walk-in closets, in-unit washers and dryers, and Flatirons views. The property has community open space and direct access to the Wonderland Creek Greenway Trail.

While condo conversions in Colorado are rare due to the risk of construction defects litigation, if that ever should change, “I do think down the road this property in particular is a great candidate to be converted given the construction quality and format,” Hunt commented.

Wonderland Creek’s occupancy was low considering Boulder’s overall vacancy is under 5 percent and typically among the lowest in the Denver metro area. However, a May 29 Daily Camera article indicates many tenants were caught off guard when monthly rents jumped by hundreds of dollars as move-in specials expired. Market rents average $2,767 per month.

Featured in CREJ’s Dec. 5-18, 2018, issue

Jill Jamieson-Nichols has been an Editor with the Colorado Real Estate Journal for more than 15 years, providing coverage of office, industrial, hospitality and mixed-use development news in the Denver metro area, plus all property types in Northern Colorado, Boulder County and along the Highway 36 corridor. Prior to joining CREJ, Jill was Editor of…