FOR IMMEDIATE RELEASE
CONTACT: GREG JOHNSON
(303) 343-8333
RECORD APARTMENT SALES LEVELS LIKELY TO RESULT IN PROPERTY TAX SHOCK NEXT SPRING
DENVER, July 15, 2014 – A review of recent sales data for Central Denver apartment properties points to shocking news ahead for property owners. Veteran apartment brokers, Greg Johnson and Kyle Malnati of Madison Commercial Properties studied data for all multi-family property sales in Denver’s core neighborhoods this year, and found prices have increased an average of 89% over the last two years.
“We analyzed the data for apartment buildings with 10 or more units, focusing on Capitol Hill, Washington Park, Congress Park, Uptown and Mayfair neighborhoods. In the first half of 2014 there have been 38 transactions, representing just over 1,000 apartment units. The average price this year has been $138,980 per unit,” explained Mr. Johnson. He went on to note that in the first six months of 2012, there were just 12 transactions, and the average price of those was just $73,459.
“The market has nearly doubled in the past two years,” added Mr. Malnati. “Denver hasn’t seen this type of growth in over 15 years.” Malnati and Johnson explained that increasing prices have been fueled by rising rents, growing investor demand, and building owners that have improved the physical condition of their properties prior to sale.
“The sales we’re seeing now will be used by the Assessor’s Office to calculate new property values next spring,” Mr. Johnson stated. “We heard from a large number of clients upset by the increased tax assessments they received in 2013. Next year it’s going to be crazy!”
“June 30, 2014 is the statutory date for property assessments in the next cycle, and the sales we’ve seen this spring and summer will give the tax authorities plenty of ammunition to drive values up,” lamented Mr. Malnati.
About Madison Commercial Properties
Madison Commercial Properties is a Denver-based commercial real estate firm specializing in apartment brokerage and investment sales in central Denver. Managed by Kyle Malnati and Greg Johnson, Madison Commercial Properties is a division of Madison & Co. Properties. For more information, please visit http://www.madisonprops.com or http://www.DenverApartmentBuildingsForSale.com.
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Madison Commercial Properties, Ltd. 1221 S. Clarkson Street, Denver, CO 80210 (303) 771-3850
Tom – I wanted to share a sincere “thanks” for re-blogging our article. It means a lot to me that you wanted to share it with your blog followers. Best Regards, ~Kyle Malnati, Partner/Shareholder (Madison & Company Properties) http://www.DenverApartmentBuildingsForSale.com
Reblogged this on MyTownCryer and commented:
All quadrants of our real estate market interconnected. This is great information to share!