2016 Multi Family Sales Summary of Boulder


Provided by:  The Colorado Group, Inc. Brokers- Miles King, B. Scot Smith and Wade Arnold

Like many parts of the country, the Boulder MF real estate market performed very well throughout 2016.  But the strong demand and limited supply of listed properties for sale largely accounted for a decreased number of closed transactions in 2016 compared with previous years. There were 28 closed deals in all of 2016 compared to 41 the previous year. That equates to a decrease of 30% from 2015. Even though financing interest rates have started to increase, the average estimated Cap Rates compressed slightly lower to an un-weighted average of 4.1%.  *The average Gross Rent Multiplier, average Price per Square foot, Price per Unit, Price per Bedroom, and Rent per Bedroom per month all increased from the previous year.

Boulder’s un-weighted average metrics for 2016 are as follows:

Gross Rent Multiplier- 17.9,  Estimated Cap Rate- 4.1%, Price per Square Foot- $414, Price per Unit- $398,258, Price per Bedroom- $177,270, and Rent per Month per Bedroom- $857.

Future articles will provide similar information on Longmont, Louisville, and Lafayette.

*The data for the city of Boulder is divided into 11 different geographic locations, and the above metrics will vary greatly from one district to another. Initially, our office tracts all of the past MF sales and current listings on these six different metrics.  In order to provide specifics for comparison purposes, each listing and sales transaction is then grouped with other properties in similar locations.