2014 Denver Multifamily Sales Stats Recap by Greg Johnson

January 16, 2015 – Greg Johnson presents the 2014 end-of-year market statistics to a group of multifamily owners and investors. This exclusive lunch event was hosted at an new, upscale apartment community located at 1756 Clarkson Street in Denver’s Uptown neighborhood.

Greg Johnson Multifamily Presentation

Greg Johnson Multifamily Presentation

In this YouTube presentation, you will learn about the following about Denver multifamily from Greg Johnson:
– 06:20 — 63 multifamily transactions in ’14 with an average sale price of $127k/unit
– 07:38 — $107k/unit average in ’13 compared to $127k/unit average in ’14 is due to better product on the market (renovated buildings that were purchased with the original intent of rehab)
– 08:29 — only 7 deals of the 63 sales in ’14 were UNDER $100,000/unit!
– 08:52 — cap rates have fallen consistently below 6% in Central Denver
– 09:33 — ’09 and ’10 multifamily transactions were at an uncharacteristic low
– 10:15 — 50-60 Central Denver multifamily transactions average/year
– 11:00 — 6,500 units of new construction were delivered to the Denver multifamily market in ’14
– 13:15 — 7,500 newly constructed apartments were absorbed
– 13:45 — 19,000 apartment units are currently under construction; the majority will be delivered in ’15
– 15:50 — apartment vacancy rates for Central Denver moves lock-step with Denver County and Metro Denver
– 17:00 — 6.9% vacancy rate for Central Denver in 2014Q4, due to new construction (compared to 2.5%)
– 17:35 — 1756 Clarkson Street sold in May 2014 for $15,200,000

Kyle Malnati and Greg Johnson are thankful to the owner of 1756 Clarkson Street and their management company, Cornerstone Apartment Services, for providing us with the space to record our presentation. We hope that the topics covered in this YouTube video will be helpful to you, the apartment investor, if you’re: 1) looking to buy your first apartment building, 2) if you want to add to your existing rental portfolio in 2015, or 3) if you just want to understand what’s happening in the Central Denver apartment market. We hope you enjoy this post to “Multifamily Movie Monday!”

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Greg Johnson and Kyle Malnati
Madison Commercial Properties
Madison & Company Properties
1221 S. Clarkson St. #300, Denver, CO 80210