Draper and Kramer Acquires Golden Apartment Asset for $62 Million
Chicago-based investment firm Draper and Kramer has expanded its Colorado portfolio with the $62 million acquisition of Epoque, a 120-unit apartment complex in Golden. According to Bisnow, the sale marks a significant exit for Denver-based Forum Investment Group, which originally purchased the property for $3 million in 2017 before developing the luxury site.
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Context from Industry Pulse
The Denver multifamily market is currently defined by a supply-demand imbalance as an influx of new inventory hits the market. As reported by Bisnow, this oversupply has driven rent prices down by 3.5% year-over-year. Beyond local supply issues, the city faces unique macroeconomic pressures, including a return-to-office rate that ranks among the slowest in the country. These factors, combined with elevated borrowing costs that have impacted the national real estate landscape, have cooled investor appetite. Draper and Kramer’s decision to pause further acquisitions in the region reflects a broader cautious sentiment among institutional investors who are waiting for Denver’s regulatory and occupancy trends to stabilize before committing more capital.
"Denver’s recovery is behind other markets, adding that the city’s regulatory environment has hindered the area’s apartment market."
The transaction for the property located at 1175 Newstar Way was finalized last week, as confirmed by Jefferson County records. The buyer, Draper and Kramer, is a property and financial services company that maintains a presence in several major markets, including Chicago, Austin, and Phoenix. This latest deal follows the firm's recent $126 million acquisition of a luxury building in the Chicago suburbs, representing one of the highest prices ever paid for a multifamily asset in that region.
While the firm continues to manage existing assets like Tempo Nine Mile in Aurora and The Wright in Centennial, company leadership indicated this Golden acquisition would likely be its final purchase in the Denver metro area until market conditions show improvement. As Bisnow reports, the region is currently grappling with an oversupply of new construction, which has shifted the power dynamic toward renters and contributed to a 3.5% year-over-year decline in local rent prices.
Broader economic factors are also weighing on the multifamily sector. Nationally, the asset class is facing headwinds from rising borrowing costs and a surplus of available units. In Denver specifically, the recovery has been hampered by a slow return-to-office rate and a regulatory environment that has created challenges for apartment owners. According to Bisnow, the city has faced negative attention for having one of the highest downtown vacancy rates in the United States.
The Epoque development features a variety of floor plans, ranging from 590-square-foot studios to three-bedroom units spanning 1,660 square feet. The complex is positioned as a high-end residential option, offering amenities such as a fitness center, community garden, game room, and an outdoor lap pool. Despite the current market saturation, the sale highlights the continued movement of capital from out-of-state institutional buyers into the Colorado suburbs.
The Industry Pulse Bottom Line
Draper and Kramer's $62 million acquisition signals a strategic pause for the firm in Denver as high supply levels and sluggish office returns continue to pressure local multifamily valuations.