Apartments are being built at a rate not seen in over 40 years — and there is no sign of a slowdown!
According to Denver-based James Real Estate Services, there are 19,900 units currently under construction — with over 20,000 more in the planning stages. Those figures are in addition to the 16,000 apartment units already completed since the beginning of 2013.
A year ago, many investors hoped we could see the end of apartment construction, at least in Central Denver. After all, we were running out of vacant land for development. But developers’ appetites for construction is so rabid that new projects are moving beyond vacant land and parking lots, and we’re seeing existing structures torn down to make way for infill development.
The demolition for a current redevelopment project really caught our attention…
The Valero gas station at the corner of Speer Blvd. and Grant St. was an extremely busy (and we assume profitable) business. With twenty-six pups, it was the largest, and essentially only, gas station serving drivers between downtown and Cherry Creek. The station was razed in 2013, and in its places is a new 221-unit six-story apartment building expected to open in early 2016.
Across Central Denver, we are seeing apartment construction where retail shops, office buildings, restaurants, homes and even gas stations once stood. We don’t expect development to slow down until it’s too late.
About Us: Proudly based in Denver, CO, we are a commercial real estate group that specializes in apartment brokerage and investment sales in Central Denver’s hottest neighborhoods.
Principals, Kyle Malnati and Greg Johnson, provide insight and experience to meet the needs of the private apartment investor. Combined, they have successfully brokered over $248,000,000 of Colorado real estate for their clients.
Purpose: The purpose of this newsletter is to provide insight on the direction of the apartment market in Central Denver, and to highlight the transactions that occurred between June 15, 2015 and September 15, 2015.
For more detailed information, or to discuss your investment opportunities, please contact us.