Denver has landed at the topof investors' buy lists for years, and even as competition hasincreased in the market and yields have waned, it hasn't budged.Heslin Holdings—an investment firm that isplanning to place $400 million in capital across commercial assetclasses over the next 12 months—has been an active player in theDenver market for six or seven years, and this year, it stillconsiders Denver its top target market for multifamilyinvestment.

“Denver has been our number one focus geographically for thelast six or seven years,” MattHeslin, CEO of Heslin Holdings, tells“Demographically speaking, the market is the most exciting that wehave seen, and we have studied all of them. Denver has 50,000millennial moving in and a highly educated and diversifiedworkforce in everything from bioscience to technology. The GDP ofthe local economy, and the unemployment is below the nationalaverage. From a demographic point-of-view, it made sense to startin the market, and we did. We were one of the early adopters in themultifamily value-add space.”

The firm has acquired 6,000 units in the market, including therecent $177 million of a 1,000-unit complex in Denver. However,increased competition, particularly in the middle-market niche, hasmade finding new opportunities a challenge. “When we started, wehad a strong opportunity to have our pick of the litter, so tospeak,” says Heslin. “We have seen more aggressive posturing by theinstitutions to play at a more medium-priced level. Now, we areseeing institutions step into the $25 million to $75 million sphereand have started absorbing those properties in the middle markets.That is where we were one of the few players in the early days. Wehave also seen smaller players entering the market and teaming upwith funds and institutions. Those factors have pushed pricing upand yields down in the market.”

Continue Reading for Free

Register and gain access to:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.