Investment Overview

Strategically situated within Aurora’s flourishing corridor, Sable View Townhomes represents a compelling investment opportunity underpinned by formidable economic drivers and persistent rental demand. Positioned just east of downtown Denver and conveniently proximate to Denver International Airport, Aurora—Colorado’s third-largest city—boasts accelerated demographic growth, robust employment sectors, and housing market dynamics notably advantageous for institutional investors. Anchored by the expansive, 578-acre Fitzsimons Life Science District, home to the UC Anschutz Medical Campus, Children’s Hospital Colorado, and Rocky Mountain VA Medical Center, the immediate vicinity sustains over 25,000 specialized medical professionals, a figure projected to exceed 45,000, ensuring a perpetual influx of high-income renters. The submarket's appeal is further augmented by the substantial presence of Buckley Space Force Base, Aurora’s largest singular employer with approximately 12,000 personnel, alongside Denver International Airport, the nation’s third-busiest aviation hub. These diverse employment nodes collectively attract a resilient tenant base comprising healthcare specialists, military affiliates, aviation workers, and professionals associated with burgeoning life sciences innovation. Additionally, residents benefit from exceptional connectivity and amenities, including the Town Center at Aurora, Aurora Sports Park, extensive recreational trails, and seamless integration with regional RTD Light Rail infrastructure, enhancing urban-suburban lifestyle desirability and elevating the location’s attractiveness to discerning renters-by-choice. Constructed in 2022 by Alliance Homes, a distinguished developer with over three decades of award-winning residential experience, Sable View Townhomes features 16 meticulously designed, individually deeded townhomes, each spanning 1,606 SF and comprising two bedrooms, two-and-a-half baths, attached garages, and energy-efficient construction. Alliance’s proven track record of superior craftsmanship, operational excellence, and enduring asset quality underscores the property’s resilience and marketability, presenting investors with durable, high-caliber product situated notably below replacement cost at approximately $291/SF. The property’s current in-place rents average $2,677 monthly, with notable upside potential demonstrated by existing furnished mid-term leasing achieving upwards of $3,100 per month, supported by robust comparables reaching as high as $4,770 monthly. Marcus & Millichap has strategically partnered with Lark & Co., an expert operator in mid-term furnished leasing, to optimize cash flow through targeted operational enhancements and strategic vacancy reduction initiatives. Tenants assume responsibility for all utilities, significantly reducing operational overhead and bolstering net income margins. Sable View Townhomes’ differentiated investment thesis leverages Aurora’s undersupplied institutional-grade townhome rental inventory, stringent condo defect legislation limiting competitive new supply, and sustained rental rate appreciation, historically surpassing metro-wide averages (18.3% versus 14.7% over five years). With fee-simple ownership providing future exit optionality via phased sales or bulk disposition, the asset uniquely aligns with sophisticated investors seeking stable yield, capital preservation, and strategic upside in a high-demand, resilient rental submarket. Sable View Townhomes is a newly constructed, 16-unit build-to-rent community developed and built by Alliance Homes, a builder with over 35 years of experience delivering high-quality, award-winning housing across multiple markets. This property offers investors a rare opportunity to acquire a stabilized, fee-simple townhome asset in a submarket poised for continued rent growth and supported by strong housing fundamentals. Each of the 2 BDR | 2.5 BA units spans 1,606 SF and is individually deeded - allowing future exit flexibility via bulk disposition or individual resale. Built in 2022, the homes offer modern finishes, attached garages, efficient layouts, and energy-conscious construction. Alliance Homes’ longstanding reputation for craftsmanship and durability is evident throughout, reflecting the same construction standards that earned them repeated honors in the Parade of Homes and a long-standing track record of quality across both custom and infill housing. RENTER DEMAND & MARKET FIT Aurora remains one of the most underserved submarkets in Metro Denver, with limited institutional-quality townhome product. In fact, only three buildings built since 2018 are actively advertising 2-bedroom rentals within a two-mile radius. With just 10% renter penetration and strong job drivers like Buckley Air Force Base, Fitzsimons Innovation Community, and DIA nearby, Aurora is attracting renters seeking suburban-style living with access to metro amenities. The current in-place rents average $2,677/month, with one unit already leased furnished at $3,100/month under a mid-term model (~3-month average stays). Mid-term furnished rentals in Aurora are consistently achieving $3,200/month, based on comparables like Legacy at Fitz and The Broadleaf. Marcus & Millichap has already engaged Lark & Co., a premier local operator, to optimize leasing strategy. Conservative year-one assumptions include a 10% vacancy factor, but market conditions and new management are expected to reduce total vacancy, concessions, and collection losses by 50% in the next 12 month through the implementation of a furnished mid-term leasing model, which Lark and Co specializes in. Given proximity to Fitzsimmons Medical and traveling nurses the mid/term model is in high-demand. OPERATIONAL EFFICIENCIES & ASSET PROFILE All tenants are responsible for their own utilities (water, sewer, trash, gas, electric), reducing owner burden and enhancing net income. The property is operated with an all-in management structure that includes leasing, marketing, turnover, and mid-term furnishings as needed. Estimated furnishing costs range from $10K–$12K/unit, with professional management set at 8–10% of EGI, depending on lease structure. Taxes are fully documented and aligned with the actual values assessed in 2024–2025 (~$2,787/unit), and reserves are underwritten at a market-consistent $200/unit/year. CONCLUSION Sable View Townhomes checks the box for institutional investors seeking stabilized income, long-term upside, and location fundamentals backed by demographic tailwinds. The asset sits well below replacement cost at $291/SF, and offers cap rate expansion through both lease-up strategies and long-term mark-to-market growth. With a proven builder, efficient design, and high-quality townhome product in a submarket with accelerating demand, Sable View stands as a compelling alternative to core multifamily with lower operational friction and greater exit optionality.