Denver Apartments Hot For How Long?
Denver remains one of the most robust multifamily markets in the country, and lenders would like nothing better than a piece of that action. That's why we're excited to present Bisnow's 3rd Annual Denver Multifamily event at the Sheraton Denver Downtown on July 23 at 7:30am.
KeyBank SVP Charlie Williams, who will be one of our speakers, tells us that the market's strength is that Denver now has a very diversified economy with job growth in many sectors—medical, technology, finance and energy. Denver used to be a one-trick pony: oil and gas in the '80s, telecom in the '90s. Not any more. The population's also growing, and that's expected to continue, Charlie adds. Everyone, from Millennials to Baby Boomers, wants the jobs and the lifestyle here.
So lenders remain bullish on Denver’s outlook. Investors acquiring multifamily in the Denver metro area have no shortage of options when it comes to financing sources, Charlie says. Owners will usually have four or five very attractive options in the capital markets (agency, CMBS and life) or bank debt. As is clearly evident with the new projects breaking ground, lenders are still providing construction debt as well. TOD developments and good infill locations are still getting financed at compelling terms.
Will the party end soon? "There's some caution that the market will be overbuilt in the next 18 to 24 months, which may cause a slowdown, but if we continue the pace of new jobs and population growth that we have now, any slowdown will be a minor blip," Charlie says. "Overall, the Front Range from Fort Collins to Colorado Springs is an area both owners and lenders want to be fully invested for the foreseeable future."
More apartments, indeed. Pivot Denver, a mixed-use project near Union Station, broke ground this week; it's ground-floor Whole Foods, clocking in at 56k SF, will be the company's flagship store in Denver. The project, formerly called 17W for its location at 17th and Wewatta, will also include 580 apartments, reports the Denver Business Journal. The developers are Holland Partner Group and North American Sekisui House. Come find out more about new apartment developments at the 3rd Annual Denver Multifamily event at the Sheraton Denver Downtown on July 23 at 7:30am. Sign up here.