Q Metro Denver Apartment Market Report. Denver Multifamily Capital Markets Investment Sales

Transcription

1 Q Metro Denver Apartment Market Report Denver Multifamily Capital Markets Investment Sales

2 Table of Contents METRO DENVER GROSS RENTS/UNIT METRO DENVER GROSS RENTS/SF METRO DENVER VACANCY METRO DENVER ANNUAL ABSORPTION DENVER CONSTRUCTION AT A GLANCE METRO DENVER INVENTORY CHANGE METRO DENVER ANNUAL INVENTORY CHANGE A TEAM YOU CAN TRUST Integrity drives our everyday business WE HAVE A UNIQUE SET OF SKILLS A passionate team built around your specific needs EXPERIENCE Proven track record and experience 2

3 The U.S. apartment market is ending 2014 with the strongest fourth-quarter annual effective rent growth in nine years. Three metros Oakland, San Jose and Denver had fourth-quarter annual effective rent growth of more than 10%. AXIOMetrics Inc. Photo by Ellen Jaskol 3

4 Metro Denver Gross Rents/Unit Metro Denver Gross Rents Per Unit Per SF QOQ YOY Overall $1,184 $ % 12.02% Class A $1,708 $ % 9.35% Class B $1,208 $ % 12.06% Class C $861 $ % 13.59% $1,300 Metro Denver Gross Rent ($ / Unit) Q4 2014: $1,184 $1,200 $1,100 $1,000 $900 $800 $700 $ Source: Apartment Insights 4 Highest Rents ($ / Unit) 1. Central Business District Lowest Rents ($ / Unit) $1, Aurora Northeast $ Boulder North $1, Denver Southwest $ Highlands Ranch / Lone Tree $1, Wheat Ridge $ Golden $1, Arvada $ Denver Tech Center $1, Denver Northeast $1,004

5 Metro Denver Gross Rents/SF Metro Denver Gross Rents Per Unit Per SF QOQ YOY Overall $1,184 $ % 12.02% Class A $1,708 $ % 9.35% Class B $1,208 $ % 12.06% Class C $861 $ % 13.59% $1.40 Metro Denver Gross Rent ($ / SF) Q4 2014: $1.37 $1.35 $1.30 $1.25 $1.20 $1.15 $1.10 $1.05 $1.00 $0.95 $ Source: Apartment Insights Highest Rents ($ / SF) 1. Central Business District Lowest Rents ($ / SF) $ Aurora Northeast $ Capitol Hill $ Wheat Ridge $ Boulder South $ Denver Southwest $ Washington Park $ Aurora East $ Boulder North $ Denver Southeast $1.23 5

6 Metro Denver Vacancy Metro Denver Vacancy Quartly Change (bps) Annual Change (bps) Overall 4.13% Class A 5.08% Class B 4.35% Class C 3.22% % Metro Denver Vacancy Q4 2014: 4.13% 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% Source: Apartment Insights 6 Highest Vacancy 1. Lowry 5.96% 2. Boulder North 5.59% 3. Washington Park 5.38% 4. Commerce City 5.22% 5. Denver Northwest 5.09% Lowest Vacancy 1. Boulder South 2.39% 2. Aurora Northeast 2.45% 3. Arvada 3.01% 4. Denver International Airport 3.05% 5. Denver Southwest 3.14%

7 Metro Denver Annual Absorption 8,000 7,000 Metro Denver Annual Absorption Q Annual: 7,071 6,000 5,000 4,000 3,000 2,000 1, ,000-2,000-3, Source: Apartment Insights Highest Annual Absorption 1. Central Business District Interlocken Denver Northeast Denver Tech Center Denver Southeast 382 Lowest Annual Absorption 1. Wheat Ridge Lowry Lakewood Commerce City Westminster -4 7

8 Metro Denver Construction at a Glance Submarket Under Construction Planned Scheduled Delivery % of Total 2016 TBD % of Total Central Business District 2, % 367 4, % Denver Tech Center 1, % % Denver Northwest % - 1, % Highlands Ranch / Lone Tree % % Interlocken % 111 1, % Cherry Creek 1, % % Capitol Hill % % Thornton / Northglenn % % Boulder North % % Washington Park % % Lakewood % % Parker % % Denver Northeast % - 1, % Jefferson County % % Denver South Central % - 1, % Golden % Aurora South % Westminster % % Wheat Ridge % % Denver International Airport % % Aurora Southwest % % Arvada % % Denver Southwest % % Longmont % % Aurora East % Lowry % % Aurora Northeast Boulder South % Brighton Commerce City Castle Rock % Denver Southeast Erie / Firestone / Frederick % Total 13,571 4, % , % 8

9 Metro Denver Inventory Change 5,000 Metro Denver Inventory Change Q4 2014: 2,632 4,000 3,000 2,000 1,000 - (1,000) (2,000) Source: Apartment Insights Highest Inventory Change 1. Central Business District Denver Northwest Denver Tech Center Aurora South Cherry Creek 283 9

10 Metro Denver Annual Inventory Change 10,000 Metro Denver Annual Inventory Change Q Annual Change: 8,581 (177,775 total inventory 50+ units) 8,000 6,000 4,000 2,000 - (2,000) Source: Apartment Insights Highest Annual Inventory Change 1. Central Business District Denver Tech Center Interlocken Thornton / Northglenn Denver Northwest

11 JLL is a team you can trust When you select Jones Lang LaSalle as your multifamily business partner, you get a single, agile, integrated company with a client-centric approach to real estate. In a broader context, the entire firm is at your disposal whether you collaborate with us to modify the status of a single asset or make a series of complex decisions that impact properties worldwide. We have a uniform commitment to help you successfully resolve your real estate needs. This is the defining status quo of our corporate culture. It drives our everyday business and delivers consistently profitable results. 11

12 We have a unique set of skills in marketplace We ve been principals. We ve been operators. We ve been developers. We ve been lenders. We ve raised money. WE VE BEEN THE CLIENT. When you select Jones Lang LaSalle s Denver Multifamily Team as your business partner you get a team with substantial understanding of all phases of the multifamily investment life cycle. This experience allows the JLL Denver Multifamily team to add unique value to every assignment, no matter how large or complicated the opportunity. Whether developing, financing, buying, or selling multifamily real estate, Jones Lang LaSalle can help you complete your transaction. COLLECTIVELY WE HAVE PARTICIPATED IN OVER $6+ BILLION OF SUCCESSFUL MULTIFAMILY TRANSACTIONS. 12

13 JLL Denver Multifamily Team PAT STUCKER Managing Director Pat Stucker joined Jones Lang LaSalle in October 2013 following a successful tenure as an Executive Director within Cushman & Wakefield s Multifamily Advisory Group. Pat is consistently recognized as a top producer for multifamily property sales in Colorado and finished among the top multifamily brokers in the Cushman & Wakefield organization in 2011 and Prior to joining Cushman & Wakefield, Pat served as a Senior Vice President at AIMCO and Managing Member of Stucker & Company. Over the course of Pat s real estate career, he has completed transactions on over 50,000 apartment homes and over $3 billion in total sales. Pat earned national designations including: Certified Commercial Investment Member (CCIM) and the Institute Real Estate Management, Certified Property Manager (CPM). Pat earned his BS from the United States Air Force Academy. RAY WHITE Vice President Ray joined Jones Lang LaSalle from Cushman and Wakefield in September Over the course of his career, Ray has managed the marketing, underwriting, due diligence and closing of over $3.0 billion in successful institutional apartment transactions. Previously, Ray was an Asset Manager at GMAC Commercial Mortgage where he evaluated financial performance and loan compliance for multifamily, healthcare, retail, industrial and office properties held in a $500 million lending portfolio and managed the operation of a $400 million lending facility for one of the nation s largest multifamily tax credit syndicators. Ray earned his BA from DePaul University and his Masters in Real Estate and JD from University of Denver. TRAVIS HODGE Associate Travis joined Jones Lang LaSalle in May 2014, and is responsible for the underwriting and analysis of multifamily assets for Denver s Multifamily Team. He is integral to the transactional process including financial analysis and valuation, market analysis, research, and due diligence. Prior to joining JLL, Travis spent 5 years as accountant for Specialized Title Services, a boutique commercial real estate firm in Atlanta, GA specializing in title, escrow, closing, legal counsel, and tax deferred exchange. In this role, Travis handled the finance, accounting, and client investment and relationship duties of the firm. Travis is in his final year of the Master of Business Administration program at the University of Colorado Leeds School of Business where he serves as President of the Graduate Real Estate Association and Student Advisory Council Representative for the MBA Class of Travis also serves on the University of Colorado Real Estate Center Board of Directors, and is a participating member of NAIOP s Colorado Chapter. Travis earned his Bachelor of Business Administration in Accounting from the University of Georgia. 13

14 1 EXPERIENCE PROVEN TRANSACTION RECORD & EXPERTISE

15 5 1 STERLING UNIVERSITY PEAKS 384 Units in Boulder, CO Under Contract FALLS AT LAKEWOOD 96 Units in Lakewood, CO Under Contract 3 SANDPIPER 357 Units in Westminster, CO Under Contract 4 LEGACY HEIGHTS 418 Units in Denver, CO Sold ONE DARTMOUTH 418 Units in Denver, CO Sold 2014 TAMARAC VILLAGE 564 Units in Denver, CO Sold COPPER FLATS 336 Units in Denver, CO Sold ARABELLA 156 Units in Denver, CO Sold SOMMERSET GARDENS 420 Units in Aurora, CO Sold

16 PAT STUCKER Managing Director RAY WHITE Vice President TRAVIS HODGE Associate JONES LANG LASALLE th Street, Suite 1900 Denver, Colorado P F