Multifamily Pricing Surges in Denver Suburbs

Terrance Hunt

Multifamily prices in Denver’s suburbs are rising. As part of the trend, Ridge at Wheatlands, a 338-unit apartment complex in Aurora, CO, has traded hands for $91.25 million or $270,000 per unit—a record-breaking price-per-unit in market. Rapid economic and population growth in Denver has attracted national attention, and now that growth and capital is spilling into the surrounding suburban markets.

“Incredible market fundamentals are the biggest driver of multifamily price increases in Denver. The Denver economy is creating jobs at a rapid pace and attracting young, talented workers to the area,” Terrance Hunt, vice chairman at Newmark Knight Frank and a broker on the deal, tells GlobeSt.com. “While these workers are affluent for their peer group they are still hard pressed to break into the for-sale housing market, which has a real shortage of entry-level inventory. This trend has resulted in record-breaking apartment demand—2018 set an all-time Denver record for apartment absorption—rising rents, and rising sale prices. Investors are attracted to the long-term growth perspective in Denver and are looking to establish or expand their footprint in the market.” In addition to Hunt, Vice Chairman Shane Ozment and Executive Managing Director Chris Cowan also worked on the deal.