CREJ

August 2019 — Multifamily Properties Quarterly — Page 35 www.crej.com Eight-Stories | 178,000 sf | 139 Units Parking Garage | One Level Retail Englewood | Steamboat Springs calconci.com | We Build: MULTI-FAMILY Educational | Financial | Healthcare | Industrial | Mixed-Use | Office Buildings Parking Structures | Recreational | Retail | Technical | Worship Coming Soon! 2065 Cherokee Apartments UST yield down even further as a safe haven for bond investors. How far can short term rates drop? Well, as shown the in the graph, the one-month Libor futures indicates massive downward pressure, with projections reflecting a nearly 90 basis point-drop in the one-month Libor from current range of 2.3%, all occur- ring within the next 19 months. Again, this is primarily due to global economic weakness. The awareness that “real estate is local, capital is global” has never been more evident than within our current environment, as we con- stantly need to weigh local multifamily trends independently of the capital markets indications. Each are measur- ing sticks, but the compasses are not tied. As we reflect on midyear progress and plan for future achievements, we are fortunate that the metro Denver multifamily market has defied skeptics with continued performance strength. Don’t be surprised if this continues as capital costs for the foreseeable future are projected to sink further, extending our local rally. Beware though of the disruptive forces from upcoming regu- latory changes and the interconnec- tions and ramifications that a weaken- ing global economy can have on our local cost of capital. ▲ DeHarty Continued from Page 16 volume during the first quarter was 50% higher than in first-quarter 2018 and already had used nearly one- third of its capped loan allocation bucket, according to 5Stat Monday. However, life insurance companies have continued to make a broad gain nationally, increasing their total volume by 9% in 2018. Life companies have increased both their balance sheet programs as well as third-party capital pro- grams and, together with the agen- cies’ 2019 volume that has reached their respective caps, there will be no shortage of aggressive life com- pany and other nonagency lend- ing, both nationally and in Denver, where we have seen quoted spreads as low as 115. According to Real Capital Analytics, the percentage of nonagency multifamily loans in Denver was 36% in 2018, but thus far in 2019, already is up to over 45%. As we continue to see metro Denver to be one of the strongest investment markets in the country, the gap between agency and nonagency debt is continuing to narrow. ▲ Segall Continued from Page 18 that are as unique as the people who live there.We all want to create special places for people that are individual- ized rather than mass-produced for timeliness and financial gain.While speed always will have a place in the development process, being more thoughtful in our design planning and process will lead to creating spaces for all to enjoy. Imagine the new Denver with mul- tifamily, office and retail projects that are specifically unique to their respec- tive neighborhoods and incorporate creativity that shapes each area of town into distinctive communities. Including murals and artwork through- out help define the character of its residents, tenants, shop owners and workers. Parks and open spaces only enhance neighborhoods. These are the beginnings of placemaking that will survive the rapid expansion of Denver and help establish a strong foundation for the city’s growth to continue. The future Denver can be an exciting place, full of exceptional spaces that we can all be proud of and want to interact with – if we keep the greater commu- nity in mind. ▲ Okland Continued from Page 22 more for divisive thinking. In fact, the greater diversity of people with com- mon values are often much stronger than less diverse communities. How can this be addressed by design? Start with considering the kind of values that you are seeking to attract to your project. People with strong values geared toward family might be well supported by units and amenities that serve the needs of parents or children. Or perhaps a population who believes strongly in sustainable living might form a strong community in a build- ing that exudes those characteristics. Forming a community around some- thing that people strongly believe in creates tight bonds that sustain. ▲ Dalvit Continued from Page 24 know that we aren’t the same owner/ operator/manager that had been there previously.” Both Origin and Central use high-definition photos, websites and social media to show- case changes and help prospective residents imagine the lifestyle they can expect at the revamped proper- ties. High-quality signage and bro- chures complete the picture. After all, nowadays, nearly 100% of prospective tenants first view a property online. “It’s all about people’s perceptions. An apartment is somebody’s home; they want to feel good about that home,” said Records. At the Mead- ows, “The branding helped to create that sense of pride, and to create a community with an identity.” Over- all, he explained, “If you don’t create that emotional tie to the tenant, you lose.” As Denver metro area developers look for new, attainably priced oppor- tunities, they too will be well-served to take a second look at all that aging apartment stock from the ‘70s and ‘80s. That “dumpy old Class C” com- plex could be your ticket to some surprising ROI. ▲ Backman Continued from Page 29