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Central Denver Apartment Market Report

Kyle Malnati – Principal

2012 — 2nd Quarter Central Denver Neighborhoods In order to provide you, the apartment owner, with detailed and relevant information, I have divided the Central Denver area into distinct neighborhoods. This allows us to focus on trends within a specific neighborhood and not rely on Metro Denver’s generalized statistics. Although this requires more work and research, I believe that property owners in our market will appreciate and can benefit better from the more accurate information.

Featured Listing!

40 Units $55,000/unit! Capitol Hill Corner Lot Diverse Unit Mix

Shortly after my newsletter was printed last quarter, the Denver Apartment community experienced a great loss in the passing of Dr. Gordon E. Von Stroh (1943-2012). Dr. Von Stroh’s Rent and Vacancy Report has assisted and benefited apartment owners of all sizes for over 30 years. His research in the local apartment market started as a partnership with DU and the AAMD at a time well before the internet made simi-lar information available. It was a pleasure to witness his passionate and witty presentation of statistical data. I had the pleasure to meet Dr. Von Stroh a few times early in my career, and I am forever grateful for his advice and contributions.

Multifamily Mortgage Interest Rates: (as of May 21, 2012) 3.78% fixed for 3 years 4.30% fixed for 5 years 4.52% fixed for 7 years

Kyle Malnati Madison Commercial Properties, LTD 1221 S. Clarkson St. Ste.300 W: 303-771-3850 C: 303-358-4250 kmalnati@MadisonProps.com www.DenverApartmentBuildingsForSale.com

Kyle Malnati Principal

Hi, I am Kyle Malnati, a commercial real estate broker specializing in multifamily and investment sales. I am a Principal and co-Owner of Madison & Company Properties which is a respected and established boutique firm located in Central Denver. I have been fortunate to experience many successes in my brokerage career which includes the following awards: REALTOR Magazine’s “30 Under 30” Award in 2012, Company Top Producer in 2009, Multifamily and Investment “Heavy Hitter” in 2008, 2009, 2010, and 2011. Young Broker “Heavy Hitter” in 2008, and Company Rookie of the Year in 2007. I originally got my start in commercial real estate on the “ground floor” as a Transaction Manager for another established brokerage team in Denver, and I person-ally oversaw the successful closing of more than $69,000,000 in investment real estate in two years. I attribute my career accomplishments to keeping focused on my clients’ goals, having wonderful mentors, working hard, and becoming an industry specialist. I graduated from the University of Wyoming in 2004 with a B.S. in Finance and a Minor in Banking and Financial Services. On the home front, my wife and I are the proud par-ents of a 2-year old daughter, and 1-year old twins.

Malnati Recent Sales SOLD: 1/14/2011 2401-15 Stout St. Price: $1,110,000 Units: 17 Price/SF: $106.39 Price/Unit: $65,294 Cap Rate: 6.98% Lender: 1st Bank

SOLD: 5/17/2011 1159 Corona St. Price: $399,000 Units: 7 Price/SF: $107.14 Price/Unit: $57,000 Cap Rate: 8.47% Lender: Steele Street

SOLD: 3/21/2011 835 S. Quebec St. Price: $1,450,000 Units: 34 Price/SF: $71.59 Price/Unit: $42,647 Cap Rate: 8.87% Lender: 1st Bank

SOLD: 8/9/2011 1301 E. 33rd Ave. Price: $795,000 Units: 15 Price/SF: $74.02 Price/Unit: $53,000 Cap Rate: 8.09% Lender: 1st Bank

SOLD: 8/16/2011 2509 Tremont Pl. Price: $1,425,000 Units: 19 Price/SF: $72.61 Price/Unit: $75,000 Cap Rate: 8.19% Lender: 1st Bank

SOLD: 10/27/2011 1628 Colorado Blvd. Price: $300,000 Units: 5 Price/SF: $67.87 Price/Unit: $60,000 Cap Rate: 5.98% Lender: 1st Bank

SOLD: 11/21/2011 1300-14 Ames St. Price: $400,000 Units: 8 Price/SF: $85.03 Price/Unit: $50,000 Cap Rate: 8.18% Lender: 1st Bank

SOLD: 12/9/2011 1328 Corona St. Price: $875,000 Units: 10 Price/SF: $158.46 Price/Unit: $87,500 Cap Rate: 7.42% Lender: Chase

SOLD: 4/2/2012 845 Emerson St. Price: $475,000 Units: 5 Price/SF: $164.02 Price/Unit: $95,000 Cap Rate: 6.90% Lender: Steele Street

SOLD: 1/13/2012 1225 Colorado Blvd. Price: $2,125,000 Units: 30 Price/SF: $109.54 Price/Unit: $70,833 Cap Rate: 6.14% Lender: Chase

SOLD: 3/12/2012 407-55 29th St. Price: $1,500,000 Units: 33 Price/SF: $78.71 Price/Unit: $45,454 Cap Rate:8.91% Lender: Steele Street

SOLD: 2/29/2012 231 Logan St. Price: $875,000 Units: 11 Price/SF: $187.28 Price/Unit: $79,545 Cap Rate: 6.11% Lender: 1st Bank

SOLD: 3/15/2012 541 Norfolk St. Price: $1,490,000 Price/SF: $65.86 Lender: Bank of the West

Call (303-358-4250) or email (kmalnati@madisonprops.com) me if you need to sell or buy an apartment building in Denver. I am always happy to also provide you with a FREE, detailed analysis showing what your property could sell for TODAY.

Issue #22

www.DenverApartmentBuildingsForSale.com Go To www.DenverApartmentBuildingsForSale.com - First 75 people to register a comment at the top of the home page will be

entered into a drawing for a $125 gift card to Elway’s Winner Announced on June 11th!

MADISON COMMERCIAL PROPERTIES, LTD

The purpose of this newsletter is to provide insight on the direction of the market, and to recap the apartment transactions that occurred in the 4th Quarter of 2011 and the 1st Quarter of 2012 in Central Denver’s neighborhoods. This newsletter is the 22nd issue of a quarterly publication that focuses exclusively on the apartment market in Central Denver. Central Denver Apartment Market Report is an ongoing service pro-vided by Kyle Malnati.

SOLD: 4/6/2012 8318 W. 26th Ave. Price: $355,000 Units: 4 Price/SF: $110.94 Price/Unit: $88,750 Cap Rate: 6.30% Lender: Wells Fargo

NEW LISTING: 357 Grant St. Price: $479,000 Units: 5 Price/SF: $153.13 Price/Unit: $95,800

Central Denver Neighborhoods Neighborhood Sales - 4th Quarter 2011 & 1st Quarter 2012: Uptown Sales: 9 properties sold: Averages - $131.84/SF - $80,844/unit Area Description: Bounded by Broadway, Colorado Blvd., 20th Ave. & Colfax Ave.

Washington Park Sales: 4 properties sold: Averages - $155.28/SF - $98,436/unit Area Description: Bounded by Broadway, University Blvd., Speer Blvd. & Mississippi Ave.

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1221 South Clarkson Street, #300

Denver, Colorado 80210

Main: (303) 771-3850

Fax: (303) 200-7339

www.MadisonProps.com www.DenverApartmentBuildingsForSale.com

MADISON COMMERCIAL PROPERTIES, LTD

Central Denver Neighborhoods Neighborhood Sales - 4th Quarter 2011 & 1st Quarter 2012: Capitol Hill Sales: 9 properties sold: Averages - $124.16/SF - $108,604/unit Area Description: Bounded by Broadway, York St., Colfax Ave. & 8th Ave

Congress Park Sales: 4 properties sold: Averages - $98.12/SF - $73,797/unit Area Description: Bounded by York St., Colorado Blvd., Colfax Ave. & 8th Ave.

10/27/2011 1628 Colorado Blvd. Price: $300,000 Units: 5 Price/SF: $67.87 Price/Unit: $60,000

IMPORTANT: The provided statistics were obtained from CoStar and are assumed reliable, but not guaranteed. Kyle Malnati can provide you with a FREE, detailed analysis showing what your property could sell for TODAY. Statistical data can be extremely skewed without a large enough sample size. Even when statistics are correctly applied, the results can be difficult to interpret since they do not take into account important factors such as: unit mix, condo conversion potential, year of construction, and property condition.

IMPORTANT: The provided statistics were obtained from CoStar and are assumed reliable, but not guaranteed. Kyle Malnati can provide you with a FREE, detailed analysis showing what your property could sell for TODAY. Statistical data can be extremely skewed without a large enough sample size. Even when statistics are correctly applied, the results can be difficult to interpret since they do not take into account important factors such as: unit mix, condo conversion potential, year of construction, and property condition.

10/18/2011 1235 Pennsylvania Price: $620,000 Units: 5 Price/SF: $130.14 Price/Unit:$124,000

10/11/2011 1460 High St. Price: $560,000 Units: 10 Price/SF: $66.00 Price/Unit: $56,000

12/1/2011 1234 Clarkson St. Price: $1,487,000 Units: 23 Price/SF: $123.69 Price/Unit: $64,652

12/15/2011 1455 Vine St. Price: $650,000 Units: 10 Price/SF: $96.17 Price/Unit: $65,000

10/11/2011 515-19 E. Cedar Price: $321,000 Units: 5 Price/SF: $105.25 Price/Unit: $64,200

12/7/2011 300 S. Lafayette St. Price: $900,000 Units: 5 Price/SF: $203.11 Price/Unit: $180,000

12/1/2011 1265 Emerson St. Price: $1,188,000 Units: 18 Price/SF: $125.01 Price/Unit: $66,000

10/10/2011 1345 Monroe St. Price: $895,000 Units: 12 Price/SF: $120.86 Price/Unit: $74,583

10/4/2011 1632 Franklin St. Price: $490,000 Units: 5 Price/SF: $144.88 Price/Unit: $98,000

11/03/2011 1631 Race St. Price: $425,000 Units: 6 Price/SF: $157.70 Price/Unit: $70,833

2/29/2011 231 Logan St. Price: $875,000 Units: 11 Price/SF: $187.28 Price/Unit: $79,545

3/7/2012 601-21 S. Lincoln St. Price: $3,500,000 Units: 50 Price/SF: $125.51 Price/Unit: $70,000

12/9/2011 1328 Corona St. Price: $875,000 Units: 10 Price/SF: $158.46 Price/Unit: $87,500

12/16/2011 1057 Marion St. Price: $750,000 Units: 7 Price/SF: $130.34 Price/Unit: $107,143

12/15/2011 901 Washington St. Price: $3,500,000 Units: 10 Price/SF: $177.23 Price/Unit: $350,000

3/15/2012 1453 Williams St. Price: $400,000 Units: 7 Price/SF: $110.41 Price/Unit: $57,143

11/8/2011 1144 York St. Price: $450,000 Units: 6 Price/SF: $113.24 Price/Unit: $75,000

12/7/2011 230-240 E.19th Ave. Price: $2,875,000 Units: 34 Price/SF: $176.16 Price/Unit: $84,559

12/12/2011 3400 E. 17th Ave. Price: $2,250,000 Units: 30 Price/SF: $102.61 Price/Unit: $75,000

12/12/2011 1721 Marion St. Price: $970,000 Units: 8 Price/SF: $158.91 Price/Unit: $121,250

12/12/2011 1717 Race St. Price: $775,000 Units: 11 Price/SF: $109.12 Price/Unit: $70,455

12/21/2011 1535-37 Gaylord St. Price: $525,000 Units: 7 Price/SF: $148.98 Price/Unit: $75,000

12/19/2011 1160 Colorado Blvd. Price: $1,645,000 Units: 22 Price/SF: $79.97 Price/Unit: $74,773

1/13/2012 1225 Colorado Blvd. Price: $2,125,000 Units: 30 Price/SF: $78.41 Price/Unit: $70,833

3/19/2012 1840 Vine St. Price: $435,000 Units: 6 Price/SF: $120.33 Price/Unit: $72,500

Interest Rates* *as of May 21, 2012

Current* Last Qtr. 1 Yr. Ago

Prime - 3.25% 3.25% 3.25% Fed Funds - 0.25% 0.25% 0.25% 5 Year Treasury - 0.95% 2.11% 2.42% 10 Year Treasury - 2.09% 3.41% 3.71% 1 Year LIBOR - 0.82% 0.76% 0.87%

Kyle Malnati was awarded REALTOR Magazine’s National

“30 Under 30” Award!

“My business strategy has always been consistently focused on maintaining an accurate

database for my farm, central Denver's apartment neighborhoods. By having a detailed fo-

cus on a specific area, my clients realize that I am very knowledgeable about their market. I

won a listing appointment after impressing the seller by reciting from memory the past

sales on their block while standing in front of the apartment building.”