Highland Green
Multifamily | 40 Units | $89,375/unit
Marketing description
Marcus & Millichap is pleased to present Highland Green Apartments, a multifamily investment opportunity located in Craig, Colorado. Highland Green Apartments offers investors the opportunity to acquire a high-yielding asset with strong in-place cash flow and additional upside through continued operational efficiencies and organic rent growth. The property is currently projected at a 7.97% cap rate with upside to an 8.93% Year 1 cap rate alongside an estimated 13% cash-on-cash return on day one.
Positioned in a supply-constrained market, Highland Green Apartments benefits from growing demand for attainable housing throughout Northwest Colorado as renters continue seeking affordable alternatives to nearby resort-driven markets such as Steamboat Springs. Limited new multifamily development, rising replacement costs, and increasing barriers to homeownership continue to support long-term apartment fundamentals throughout the region.
The property also features individually metered utilities, creating operational efficiencies and reducing landlord exposure to rising utility expenses. Combined with Craig's diversified economic base, strong community appeal, and proximity to major outdoor recreation and employment drivers, Highland Green Apartments presents investors with an attractive opportunity to acquire a stable cash-flowing asset with long-term upside potential.
Investment highlights
EXCEPTIONAL IN-PLACE YIELD WITH IMMEDIATE CASH FLOW
Highland Green Apartments offers investors the opportunity to acquire a stabilized multifamily asset generating compelling day-one returns. The Property is projected to deliver a 7.97% current cap rate with upside to an 8.93% Year 1 cap rate and approximately 13% cash-on-cash returns, providing a level of in-place yield rarely available within Colorado multifamily markets.
Unlike traditional value-add investments that require significant capital deployment or execution risk to achieve target returns, Highland Green generates strong current cash flow while maintaining identifiable opportunities for future NOI growth through revenue optimization and operational efficiencies. The combination of durable income and embedded upside creates an attractive risk-adjusted investment profile.
DURABLE WORKFORCE HOUSING DEMAND SUPPORTED BY REGIONAL AFFORDABILITY TRENDS
Highland Green Apartments serves a critical role within Northwest Colorado's housing market by providing attainable rental housing at a substantial discount to nearby resort-oriented communities. As housing costs throughout Routt County and surrounding mountain markets continue to increase, Craig has emerged as an increasingly important workforce housing alternative for regional residents.
The Property benefits from a broad renter base supported by local employment drivers and regional migration trends, creating sustained demand for quality rental housing in a market where affordability remains a growing challenge.
MEANINGFUL ORGANIC NOI GROWTH POTENTIAL
The Property offers a clear path to continued revenue growth through lease rollovers, rent optimization, and operational efficiencies. Future ownership can capitalize on market-supported rental growth while preserving a meaningful affordability advantage relative to competing housing options throughout the region.
Importantly, Highland Green's upside is driven primarily by operational execution rather than significant renovation requirements, allowing investors to enhance cash flow while minimizing capital expenditure risk and operational disruption.
SUPPLY-CONSTRAINED MARKET WITH HIGH BARRIERS TO ENTRY
New multifamily development throughout Northwest Colorado remains limited by elevated construction costs, labor constraints, financing challenges, and geographic barriers to development. These factors have significantly reduced the likelihood of meaningful new supply entering the market in the near term.
As a result, existing apartment communities are positioned to benefit from favorable supply-demand fundamentals that support long-term occupancy stability and rental growth.
INDIVIDUALLY METERED UTILITIES ENHANCE OPERATING EFFICIENCY
Highland Green Apartments benefits from individually metered gas and electric utilities, reducing ownership's exposure to utility cost inflation while creating a more predictable operating expense structure.
The ability to allocate utility responsibility directly to residents improves expense recoverability, encourages efficient consumption, and enhances overall operating performance. This utility structure represents a meaningful operational advantage relative to many legacy multifamily assets throughout the region.
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