Real Estate

Real Estate
DMAR Report: seasonal dip in real estate numbers
October 7, 2015 at 12:56 am 0
Downtown Denver

DUR 2015. Denver Skyline from Diamond Hill

The Denver Metro Association of Realtors has released its most recent real estate report which highlights data from the month of September. according to the report the average length of days for a home on the market in the Denver area was 28 days with an average sale price of $356,005, which equates to a 2 percent dip in from August. When comparing September 2014 to September 2015, the year to year increase in average sale price is up 12 percent. “The late, great Yogi Berra said it best, ‘You can observe a lot by watching,’” said Anthony Rael, Chairman of the Denver Metro Association of Realtors Market Trends Committee. “Without question, the same rings true for those who track market statistics. In order to truly understand the Denver real estate market, it's essential to watch for signs in the month over month data, while observing year over year trends to appreciate the impact on home buyers and sellers.” In September a decrease was also observed in the number homes sold at prices greater than $1 million. During September 83 homes in this luxury market sold; a number which is down 25 percent from August. However, comparing September 2014 to 2015 a 43 percent increase is seen for the number of hoes sold priced over $1 million.

“We saw a seasonal dip in the higher end market, but it is still stronger than last year at this time - and much stronger than five years ago,” said Jill Schafer, member of the Denver Metro Association of Realtors Market Trends Committee.

A home in Cherry Hills Village sold in September for $5,395,000. This was the most expensive home sold in the Denver area during that month. It included 7,990 square feet of above ground space and also features 8 bathrooms. The most expensive condo of the month sold for $1.800,000 and included 2 bedrooms, 3 bathrooms with a total of 2,621 above ground square feet. This condo is located in Cherry Creek North.

“We saw a seasonal drop of 27 percent from August to September,” Schafer stated. “But, so far this year, we saw a more than 38 percent increase in luxury homes sold compared to last year. Homes that are priced right, in good locations and show-ready condition are in demand. In fact, the list to sold price increased to 110 percent in September.”

Real Estate
HFF secures financing for 5 Cap Hill properties
October 1, 2015 at 3:35 pm 0

Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has secured $28.8 million in financing for five apartment communities totaling 220 units in Denver’s Capitol Hill neighborhood.

Working on behalf of RedPeak Properties, HFF placed the financing in five separate transactions with a national bank.  The seven-year, 3.91 percent, fixed-rate loans were structured as individual loans on each property totaling $28.8 million in aggregate.  Loan proceeds will be used to refinance existing debt and recover capital investments for the renovations of the properties. 

Property Location        Total Units    Avg. Unit Size    Year Built

929 Marion Street                43 Units          405 SF                   1955/2013

970 Pennsylvania Street     32 Units          635 SF                   1940/2015

1000 Grant Street                 86 Units         742 SF                   1963/2014

1075 Corona Street               36 Units         757 SF                   1955/2015

1145-1153 Ogden Street       23 Units         706 SF                  2012 & 1896/2012            

The HFF debt placement team representing the borrower was led by Josh Simon and Eric Tupler.

“HFF provided broad market coverage to ensure that we met our investment objectives.  The process was seamless and provided us with several attractive options to consider.  We look forward to working with HFF in the future as we continue to grow our portfolio,” said Bobby Hutchinson, Investment Director for RedPeak.

RedPeak Properties’ portfolio is comprised of 2,445 units located in Capitol Hill, Cherry Creek, City Park, Downtown Denver, Greenwood Village, Littleton, Hilltop and Washington Park. 

RedPeak will also add the 7|S Denver Haus apartment project that is under construction at the northwest corner of 7th Avenue and Sherman Street to its portfolio. This project will deliver 115 apartment residences, with 29 studios, 60 one bedroom apartments and 17 two bedroom apartments. Denver Haus is also located in Capitol Hill.

1000 Grant

Photo of 1000 Grant courtesy of HFF.

Real Estate
Slight increase in available homes for sale
September 15, 2015 at 12:47 am 0
Denver real estate

Townhomes under construction in RiNo summer 2015 DUR

The Denver Metro Association of Realtors has released its September real estate report which indicates an increase in the number of available homes for sale in the Denver metro area. According to the report 7,587 homes were on the market at the end of August which is a 1.6 percent increase from July. "Inventory levels will continue increasing slightly as over-priced properties begin competing with new appropriately priced listings, and prices will likely remain neutral," stated Anthony Rael, Chairman of the Denver Metro Association of Realtors. "As our month-of-inventory inches up it moves us closer and closer toward a more balanced market." During the month of August 6,416 new listings hit the market, while 5,383 homes were placed under contract and 5,088 homes sold and closed in Denver metro area. For properties listed at over $1 million, there was a 9.5 percent decrease in sales for this segment of the market when comparing July to August. Homes in this range were on the market an average of 92 days in August compared to 112 in July. Properties over $1 million are selling for an average of $5 more per square foot than they did a year ago and $13 more than 2 years ago. "It seems like months of inventory are creeping back up in the luxury and signature markets," explained Nicole Rufener, member of the Denver Metro Association of Relators Market Trends Committee. "Homebuyers had the most choices in the luxury price ranges in January 2015 with 16 months of inventory in single family homes and 24 months of inventory for condos.
Real Estate
United Properties names new VP
September 14, 2015 at 1:09 am 0
Denver Real Estate

Mike Dailey

United Properties, a Denver-based developer and investment firm, has selected Mike Dailey as senior vice president of development. Dailey will focus on senior housing and retail development on behalf of the commercial real estate firm. He will work alongside Kevin Kelley, senior vice president of United Properties, to expand the company's development activity in Denver, as well as potential surrounding markets.

“Mike is an outstanding hire for us and will help our company grow in the Denver area, a key initiative for us,” said Bill Katter, president-development and chief investment officer, United Properties. “He has a wealth of knowledge and experience and we look forward to Mike's contributions.”

Prior to joining United Properties, Dailey was president of MVG Development. In addition, he worked for Opus Northwest as director of real estate development and in the real estate departments at Level 3 Communications and Safeway. Dailey received his law degree from the University of Denver College of Law and his bachelor's degree in business administration from Menlo College in Atherton, California.

Dailey is licensed as a Colorado real estate broker and attorney, and is a member of the Colorado Bar Association. He is currently on the board of directors for Colorado Headwaters Land Trust and a previous commissioner for the Town of Superior Planning and Zoning. Dailey is a member of the International Council of Shopping Centers (ICSC) and NAIOP, the Commercial Real Estate Development Association.

In August United Properties announced that Beverage Distributors Company, LLC, Inc. has signed to lease 500,000 square feet of space and closed on the purchase of 45 acres of land from Forest City Stapleton. This land is located at I-70 and Havana Street in Denver.

Real Estate
700,000 square foot North Denver property sold
August 11, 2015 at 11:44 pm 0
Colorado Trade Center. Image courtesy DTZ

Colorado Trade Center. Image courtesy DTZ

Conscience Bay Company, a Boulder-based real estate firm announced that it has obtained the 700,000 square foot Colorado Trade Center. This property is located at 5151 Bannock Street in North Denver, which is northwest of the I-25 and I-70 interchange. The land was purchased from Bannock Street Limited Partnership. The property is fully leased between a handful of industrial tenants. In 1922 the first building on the property was designed for use by the Chicago Burlington and Quincy Railroad. A railroad spur is currently located at the property. Associated Grocers then acquired the land and built additional buildings on the site that were used for temperature controlled storage of fruit, vegetable and other food distribution. Bannock Street Limited Partners purchased the site in 1985 and tenants have included Miller-Coors and Nestle Purina. This acquisition marks Conscience Bay's first property in Denver and this single transaction more than doubles its portfolio.  
Colorado Trade Center historic Denver

Colorado Trade Center in 1930. Photo courtesy DTZ.

“There is a lot of exciting growth happening in Denver and much of this growth is moving in the direction of the Trade Center,” said Ben Woolf, Director of Investments at Conscience Bay Company. “Considering its phenomenal location and great highway access to both I-25 and I-70, we believe that the project offers opportunities for additional development and a wide range of commercial and industrial uses.” Investment Sale Brokers R.C. Myles and Jim Brady along with Industrial Advisors Craig Myles and Tyler Smith of DTZ handled the sale transaction. DTZ will handle the leasing of the property on behalf of the new owner. “This was an exciting sale to have been a part of,” said R.C. Myles, Managing Director of DTZ’s Capital Markets Group. “The Trade Center is one of those notable properties that most people in Denver know and recognize. The seller has been a long time friend and client of our firm and we are excited to have found a great buyer who has big plans for the future of the asset.” This spring it was announced that DTZ and Cushman & Wakefield would merge and once the merger is completed, the company will operate as Cushman & Wakefield. This will create one of the largest real estate companies on the planet.