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DENVER-Institutional grade apartment sales are at a record low in the Denver area, according to the spring PULSE Colorado Multi-Housing Market report by Apartment Realty Advisors.

Realty Advisors is headed by Jeff Hawks and Doug Andrews, who have sold more institutional quality apartments in the metro area than any other brokers. So far this year, there has only been one sale of more than 200 units–the 438-unit Alexan CityCenter, which Hawks and Andrews sold to a co-mingled pension fund account managed by UBS Realty Investors LLC. Trammell Crow Residential was the seller.

“At this rate, only two apartment communities would sell this year, 20% of the average for the last eight years and fewer than any year since 1993,” according to the report.

Why the drought of sales?

For one, vacancy and rental concessions have resulted in average economic occupancies of only 78%. Also, record low construction interests rates have allowed developers to hold on to their properties, while in the past they would be forced to sell.

“There is also a universal consensus that the market will rebound, so most developers and owners choose to wait for better times,” according to the report.

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