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Boulder Multifamily Update – Third Quarter of 2016

By Miles King, CCIM

Boulder MF Market:

Boulder had an average 3rd quarter transaction volume of 10 sales, bringing our total number of closed transactions to 23 since the beginning of the year. The largest reported sale was the 83 unit apartment building, known as the Hub Apartments. It sold for $25,200,000, or a little over $303,600 per unit. A duplex on Sherwood Circle had the lowest sales price at $800,000, or $400,000 per unit. The un-weighted average metrics for the first three quarters of 2016 are as follows:

*Gross Rent Multiplier – 17.9,  Estimated Cap Rate – 4.1%,  Price per Sq.Ft. -$411,   Price per Unit-        $391,600,   Price per BR- $172,752,   and Rent per BR per Month- $871.  The average sales price was 102% of the list price.

Please contact Miles King, Scot Smith, Wade Arnold, or one of our other Colorado Group Brokers for additional detailed information including Cap Rates in each of the 11 geographic sub areas of Boulder. Metrics for other nearby cities can also be made available.  No cost Market Evaluations of MF investment properties are also available to owners considering selling or exchanging.

*Our office tracks all of the past MF sales and current active listings based upon 6 different financial and property metrics. Each listing and sales transaction is then grouped with the other properties in similar locations.