CREJ

Page 2 — Multifamily Properties Quarterly — May 2021 www.crej.com Letter from the Editor S ince Multifamily Proper- ties Quarterly launched, we’ve been featuring articles that debate the question of whether Denver is overbuild- ing multifamily properties. It’s been discussed regularly at Colorado Real Estate Journal conferences as well. There was concern that the pace of construction was unsustainable, inevitably followed by rebuttals of off-the-chart in- migration and insufficient single- family housing to meet demand. At the heart of this discussion is the fact that since com- ing out the of Great Recession, on aver- age, Denver has delivered about 10,000 new multi- family units every year. That is, until this year. Projected new construction starts will add only 6,820 units this year, according to a market update on Page 4. I anticipate this will change the conversation for the coming years when discussing supply and demand. Additionally, single-family home prices continue to increase and inventory is at a record low, while condo construction continues to lan- guish. As such, affordability remains the hot-button issue. When I think of new apartments, I often imagine the Class A, luxury properties we see on tours and highlighted in brochures; and surely many of these new units will check those boxes. So it’s easy to assume that, regardless of the number of new units coming on line, the people already cost burdened aren’t the tar- get renters anyway. However, in this issue’s Affordable Housing Spotlight, beginning on Page 40, Rodger Hara has curated a col- lection of articles about how public housing authorities are embracing market-rate development practices. Many of the projects featured within those pages are for residents making less than the area median income who now are living in beautiful, new properties. The properties span the Front Range from Douglas County to Denver to Loveland. Often these projects were achieved in large part thanks to the Low-Income Housing Tax Credit program, which the sec- tion champions as a game-changer for PHAs. Highlighting government programs designed to address affordability and cost-burdened Coloradans isn’t limited to the spotlight. The cover story discusses how housing insta- bility finally is becoming part of the national discussion. The problem is being recognized as a crucial compo- nent to getting the country back on the right path post-pandemic. Addi- tionally, on Page 20, an author writes how newly elected official should identify solutions that are working and place greater emphasis on help- ing those ideas succeed rather than trying to reinvent the wheel. So while it seems the debate about overbuilding may be tabled, the debate about how to address afford- ability is just gaining momentum. Michelle Z. Askeland maskeland@crej.com 303-623-1148, Ext. 104 Shifting topics of concern Contents 4 6 8 10 12 14 16 18 20 22 24 26 28 29 30 31 32 33 40-44 Heightened demand, tight inventory reinforce market Boomer Beatty and Peter Standley Springs builds on 2020’s transaction volume record Chris White and Mack Nelson Demand continues to outpace supply in Northern CO Jake Hallauer Many wonder: Where have all the evictions gone? Andy Newell Considerations to convert hotel or office to apts. Elaine Bailey and Caitlin Quander Structured finance for apts. is more active than ever Blaire Butler and Alex Riggs Capital continues to pour in from other regions Nik MacCarter and Brandon Kaufman Weigh options for value-add investment projects Leslie Kinson Focus on advancing existing affordable solutions Mike Zoellner Boulder sees nation’s highest share of Gen Z renters Florentina Sarac Self-touring requires different leasing strategies Heather Campbell Ways to better address diversity, equity & inclusion Tammy Freiling Elevate the renter experience in uncertain times Stacy Holden Open-air features, space top 2021 renter wish list Alexandra Ciuntu Now is the time to invest in management tech Timothy Fortner Managed Wi-Fi increases an asset’s bottom line Josh Rowe Embrace smart design decisions for your property Mary Kay Sunset Benefits to precast podiums & modular construction Rachel Johnson Schiebout Affordable housing spotlight