Full disclaimer, I just recently purchased a detached home in Thornton which will serve as an investment home. I spent a lot of time on the MLS running numbers and found that south Thornton and Northglenn presented a great investment opportunity. In this part of Thornton, you can purchase a 3-4 bedroom home for 315-400k, while the average and median rent if $2,200.
While higher rents are spectacular, there is a flip side to what makes an investment home a good investment and that is the ability for it to appreciate. It is no secret metro Denver has appreciated quite nicely over the years. So, what is helping Thornton appreciate?
Lightrail. The N line will bring a commuter line to the northern cities, Thornton, Broomfield, Northglenn and north Adams County. This line will connect cities to Denver, making the commute a total of 27 minutes from Thornton. There will be three new stops in Thornton completed as early as the end of the year – Eastlake and 124th, York and 144th and Highway 7.
Denver Premium Outlet Mall. Located at the northeast corner of 136th and I-25, Simon Property Group will be opening a retail outlet mall. Simon plans to bring 80 retailers to the mall over 45 to 50 acres. This is truly groundbreaking for the area as there are no competitors currently.
Amazon. This didn’t get announced until after I closed so it was not taken into consideration in my decision but certainly is great for the area. Amazon will be opening a robotic distribution center in Thornton in 2018. This distribution center will create roughly 1,500 new jobs for the area.
Viewhouse. Although this seems like a small attraction compared to the others, I perceive it to be valuable because it taps into one of the biggest populations – millennials. This 14,500 sq. ft. sports bar and restaurant will be located on 136th and I-25 and is scheduled to open in 2017. The Viewhouse has multiple locations through metro Denver, including Centennial, LoDo and Littleton and plans to expand more.
These are just a few of the reasons why Thornton is poised for growth and appreciation over the next few years. This coupled with a higher cap rate on a rental, makes Thornton a superb investment opportunity.
Liz works full-time as a Real Estate Agent with LUX. Denver.
