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Page 12 — Multifamily Properties Quarterly — November 2016
HFF DENVER | 1125 17th Street, Suite 2540 | Denver, CO 80202 | (303) 515-8000
proven results
in real estate cap ital markets solutions
For investment sales, financing, distressed debt/REO, loan sales, equity recapitalization,
restructuring services or advisory services, contact HFF.
Eric Tupler
Debt &
Equity Placement
Mark Katz
Investment
Sales
Jordan Robbins
Multi-housing
Investment Sales
Josh Simon
Debt &
Equity Placement
Chad Murray
Investment
Sales
Brock Yaffe
Debt &
Equity Placement
Leon McBroom
Debt &
Equity Placement
Jeff Haag
Multi-housing
Investment Sales
(303) 515-8004
Kristian Lichtenfels
Debt &
Equity Placement
(303) 515-8007
Jules Sherwood
Investment
Sales
(303) 515-8027
Mark Williford
Investment
Sales
(303) 515-8032
The Phenix
at 4-Mile
Financing
177 Units
Multi-housing
Glendale, CO
CLOSED OCT2016
Skye Crest
Property Sale
300 Units
Multi-housing
Lakewood, CO
CLOSED AUG 2016
Bluffs at
Highlands Ranch
Property Sale
340 Units
Multi-housing
Highlands Ranch, CO
CLOSED SEP 2016
Santana Ridge
Property Sale
384 Units
Multi-housing
Denver, CO
CLOSED SEP 2016
CLOSED TRANSACTIONS
CURRENTLY MARKETING
KoKo Plaza
Property Sale
34,174 SF
Mixed-use Office & Retail
Louisville, CO
ON THE MARKET
Greenwood Park
Property Sale
281 Units
Multi-housing
Centennial, CO
ON THE MARKET
Greenwood Plaza
Property Sale
266 Units
Multi-housing
Centennial, CO
ON THE MARKET
Stonegate
Property Sale
350 Units
Multi-housing
Broomfield, CO
ON THE MARKET
Tiffany Square
Property Sale
184,215 SF
Office
Colorado Springs, CO
ON THE MARKET
Gartner Campus
Property Sale
257,475 SF
Office
Ft. Myers, FL
CLOSED OCT2016
AMLI at Lowry Estates
Property Sale
414 Units
Multi-housing
Denver, CO
CLOSED OCT2016
RockVue
Property Sale
220 Units
Multi-housing
Broomfield, CO
CLOSED OCT 2016
Holliday Fenoglio Fowler, L.P. (“HFF”) a licensed Colorado and Florida real estate broker.
D enver’s robust multifam-
ily market continues to
defy expectations as con-
struction and rent growth
remain on the rise headed
into 2017. After four years of dou-
ble-digit rent growth, developers
have responded with expansive
projects across the Denver metro-
politan statistical area that are add-
ing over 20,000 units to the existing
stock. Rent growth in core areas
of development has come off its
peak as new supply is delivered, yet
absorption and rent growth remain
extremely positive. The result has
been a record-setting year for
prices and transactions with over
$6 billion expected to trade in 2016
across the Front Range.
This trend is not limited to Class
A and Class AA properties. It’s
already common for older, value-
add multifamily properties in the
area to sell well above $100,000 a
unit, according to CBRE Research.
Likewise, new product in core loca-
tions can be seen approaching sale
prices of $400,000 a
unit with a recent
outlier north of
$500,000 a unit.
Furthermore,
market forces
behind this phe-
nomenon are
not only spur-
ring development
across the Denver
metro area. These
trends are rep-
resentative of a
larger shift that is
impacting neigh-
boring markets like
Fort Collins and Colorado Springs.
Major population growth is just
one of the many factors solidifying
Denver’s status as a premier loca-
tion for multifamily development.
Denver and its neighboring markets
attracted 78,000 new residents in
2015, pushing the region’s popula-
tion to 4.5 million. Moreover, the
region saw the addition of 70,000
jobs over the same time period.
Equally notable are the region’s
unemployment rates, which reli-
ably fall below the national average
in Denver (3.1 percent), Colorado
Springs (3.8 percent) and Fort Col-
lins (2.9 percent). As a result of this
population and job growth, Denver
boasts the seventh-fastest-growing
economy of the 100 largest multi-
family markets in the U.S.
Future population growth in Colo-
rado will play a significant role in
multifamily trends. In fact, Colo-
rado already is the second-fastest-
growing state in the country. Over
270 consumers relocate to Colorado
daily and an overwhelming majori-
ty of these new residents are drawn
to Denver. Over the next 25 years,
Denver’s population is projected to
increase by more than 50 percent,
according to American City Busi-
ness Journals.
Jake Young
Vice president,
investment
properties,
multifamily, CBRE
| Capital Markets,
Denver
Investment Market
CBRE
The result has been a record-setting
year for prices and transactions with
over $6 billion expected to trade in
2016 across the Front Range.