Multifamily Fundamentals Rock in City, Suburbs
Denver apartment fundamentals are among the strongest in the country, in both the city and the suburbs.
In the city, work is now complete on the 280-unit Alta City House near Union Station, with all of its residences finished. The property has already attracted the interest of renters, with 78% of the units leased. Wood Partners director for Rocky Mountain-Midwest region Tim McEntee cites a number of factors in its popularity, but especially its urban location near employment hubs and at the nexus of metro Denver’s light rail system, which helps give it an "Excellent Transit" Score of 84 and a "Very Walkable" Score of 79 from Walk Score.
Walkable apartments near their places of work are prized by Millennials and those Baby Boomers who want to be Downtown again. The property's amenities don't hurt, either, including such touches as access to a wine locker, a two-story fitness center, and a roof deck with a view of Coors Field. Wood Partners developed Alta City House along with East West Partners, the developer of Riverfront Park and the Union Station neighborhood, and USAA Real Estate Co. It's the fifth apartment development in the Denver market for Wood Partners.
Not everyone wants to be in the urban core, and for those renters, amenities are also important, but the prime consideration is access to jobs. Recently Florida-based Advenir acquired the 351-unit Del Arte Lofts & Flats in Aurora, which it rebranded Advenir at Del Arte. Advenir chief acquisition officer Todd Linden tells us the property is "in the heart of the region’s fastest-growing employment center.”
That locational advantage interested Advenir as an investor, and also tenants: the Class-B property is 93% leased. The employment center includes the Denver Tech Center, the Fitzsimons Medical Center redevelopment, Buckley Air Force Base and Denver International Airport. Combined, they represent 486,000 jobs. Transit's important as well. The property isn't far from from the future Aurora City Center Station on the new I-225 light rail line, which is scheduled to open in 2016.