Page 14 —
COLORADO REAL ESTATE JOURNAL
— October 15-November 4, 2014
ARA COLORADO
| 1800 LARIMER STREET, SUITE 1700, DENVER, COLORADO 80202
T
303-260-4400
STEVE O’DELL
Principal
T:
303.260.4404
CHRIS COWAN
Principal
T:
303.260.4419
ARA is the largest privately held, full-service investment advisory brokerage rm in the nation that focuses exclusively on the multihousing industry.
LAND TEAM
TOP LAND BROKERS IN COLORADO
Million in sales
Transactions
P r opo s ed un i t s
$96
17
± 3,751
ARA COLORADO LAND SERVICES HIGHLIGHTS
JULIE RHOADES
Associate
T:
303.260.4481
Sales calculations include transactions that closed between January 2013 and year-to-date 2014
RECENT SALES 2013-2014 YTD
SITE NAME
PROPOSED UNITS
ACRES
Elan Union Station
312
2.37
Viridian at the Gardens
227
9.55
Platt Park
83
6.15
Quincy & Atchison
54
2.05
Villages at Southlands
300
20.1
Timberline Road (FoCo)
310
16.9
ALTA Cherry Hills
306
4.56
Crossroads DTC
408
16.53
1000 Speer
224
1.03
3200 Blake Street
N/A
1.15
Escape at Ken Caryl
249
10.34
Residences at Dry Creek
360
14.00
Vanterra
306
15.13
Paseos at Palisade
200
8.30
120th & Ash
42
3.49
Black Feather
83
2.11
Enclave at Cherry Creek
287
37.58
TOTAL:
± 3,751
± 171.34
T
he landscape of Den-
ver’s housing mar-
ket has evolved over
the past decade. No longer
are we living in a tradition-
al housing market to which
Denver has historically been
accustomed. We are now in
a period that will forever
change Denver residents’
perspective of what ameni-
ties are important to them
in their homes. The trends
leading the new generation
of homes are emerging not
through the for-sale prod-
uct but, instead, through the
new multifamily develop-
ments in the metro area. It
is amazing to see how dif-
ferent multifamily in Den-
ver is today from where we
were only 10 short years ago.
The new apartment develop-
ments reflect not only signif-
icant differences from those
built a decade ago, but also
demonstrate a shift in resi-
dent mentality, lifestyle, and
priorities that are evident in
both the location and ameni-
ties now incorporated into
each new community.
Traditionally, apartment
construction in Denver con-
sisted of three-story garden-
style product with low den-
sity. Today’s new construction
is anything but low density
and with an amenity package
that would have been con-
sidered “out of touch” dur-
ing the previous development
cycle. During the previous
expansion cycle (2001-2004),
the density of an average new
community
was 25.45
units
per
acre
and
was built
on approxi-
m a t e l y
13.5 acres.
T o d a y ’ s
n e w e s t
c ommun i -
ties
con-
trast
sig-
n i f i c a n t l y
from those of the previous
cycle. The average apartment
community is now built on
only 3.57 acres with an aver-
age density of 66.29 units per
acre. This means that new
communities are being built
on 74 percent less ground
than those built 10 years ago.
These higher-density com-
munities are also located in
areas on the opposite end
of the spectrum from those
built in the previous cycle.
Today’s new communities are
concentrated on a commuter
rail line (light rail) in Den-
ver’s urban core. Of the 53
communities built since 2011,
only 30 percent were built in
Denver’s suburbs. In contrast,
during the previous cycle, 107
communities were delivered
with over 90 percent of those
considered suburban prod-
uct and nontransit-oriented
development.
The dynamics that have
altered the locations and the
type of product being con-
structed today are also influ-
encing how developers are
approaching and integrating
the common areas and ame-
nities into these new commu-
nities. In the previous cycle,
communities were very tra-
ditional with straightforward
amenities: a clubhouse with
a heated outdoor pool and a
basic fitness center. As previ-
ously mentioned, most of the
traditional garden-style prod-
uct was built on larger areas
of land with very low density.
At that time, the individual
automobile was a higher pri-
ority and resulted in develop-
ers having to include private
garages, both attached and
detached, to accommodate
the demand.
The amenity package of
today’s modern apartment
community differs greatly
from the previous generation.
Today’s newer, higher-densi-
ty developments leave less
room for the larger resort-
style pools but, in turn, pro-
vide amenities that create a
more social environment
that encourages interaction
between tenants, including
Wi-Fi lounges, beer taps and
pub rooms, smaller wading
pools and rooftop lounges.
Fitness centers are still preva-
lent but are more functional
and have evolved into what
renters today enjoy – yoga
studios, cycle rooms, space
for cross-fit classes, Pilates,
etc.
Fido has become amajor pri-
ority for the typical Colorado
resident. Dog grooming sta-
tions are now readily found in
new communities. The ratio
of units paying a monthly pet
fee perfectly demonstrates the
increase in pet popularity. In
2005, the average percentage
of units paying a pet fee was
roughly 22 percent. In com-
parison, that ratio today has
increased to an average of 32
percent.
Another contributing factor
to the change in multifamily
housing is that Denver has
become a much more walk-
able city, which has encour-
aged renters to forgo their
car and opt for one of the
multiple options of shared
transportation. Over just the
past few years, Denver has
fully embraced the idea of
bike-share and car-share pro-
grams. Car2Go, Zipcar and
Occasional Car are all new
companies that offer car-share
services. As a result of the
shift in transportation pref-
erences, bike repair stations
have begun to appear in many
communities, and attached/
detached
garages
have
declined in demand. Light
rail, which was just an idea
during the previous devel-
opment cycle, has become a
focal point for new develop-
ment and an economic pow-
erhouse that every major city
in the country now envies.
The apartment communi-
ties of today are more than
just a place to live. They are a
window into how our world
is evolving. We are a chang-
ing community, and what we
once prioritized has become
outdated. More over, Denver
has entered into a new era that
is transforming our beloved
city from what was once con-
sidered to be a beautiful, but
secondary, city to a top-tier
metro area with more intan-
gibles to offer than 99 percent
of the country. Denver is now
a destination that is drawing
new residents and employ-
ers from every corner of the
country. Our population is
not only growing quickly, but
also changing quickly, which
is ultimately changing our
market. The apartment mar-
ket in Denver is now posi-
tioned not just for short-term
success but also for long-term
and sustainable prosperity.
This is the most exciting time
Denver has seen in its history,
and the changes that we are
experiencing now should be
embraced and celebrated.
s
Greater Denver
Another
contributing
factor to the
change in
multifamily
housing is that
Denver has
become a
much more
walkable city.
Andy Hellman
Associate, ARA
