Jack Sorenson’s Post

Paige & I had the chance to spend 14 days traveling around Italy for our honeymoon. We did all of the customary, tourist activities; eating pasta/pizza, wine tasting, renting vespas, hiking beautiful trails, and bartering for a carry-on bag to fit all of our souvenirs that we somehow acquired. I even had the chance to have a couples dinner with a buddy of mine, Nick Elder, in Capri! If you enjoy pasta, wine, and good views, and are okay with gaining 11 pounds in 14 days... Italy is the place for you! Since being back in Denver for almost one month now, I figured it was time to share some pictures with my LinkedIn community! If any of you have been to Italy, what was your favorite part/destination?

The trend continues in Denver as out-of-state buyers keep investing in the local market. Recently, a 36-unit property in Cherry Creek was sold to an investor from San Francisco. The property, One 19 Cherry Creek, was initially developed as a condo building, but financial issues halted its completion in 2019. When the project was finally finished, it was converted to market rate in October 2021. Thanks to its original condo concept, the project featured spacious 1- and 2-bedroom units, ultimately setting a new price benchmark in the Cherry Creek market. Here are the deal metrics: Sale Price: $23,000,000 Price/Unit: $638,889 Price/SF: $383.33 It's no surprise that this buyer is from out of state. Many of this year's most notable sales have involved out-of-state investors looking to make their mark in Denver. If you have questions about the Denver market or are seeking similar opportunities, please reach out.

Denver, CO's HB24-1098 introduces significant changes to multifamily eviction laws, posing new challenges for landlords. The legislation extends the eviction notice period to 30 days, potentially delaying the resolution of tenant issues. Additionally, mandatory mediation services aim to foster cooperative solutions but may increase the burden on landlords to comply with additional procedures. The law also includes measures to prevent retaliation against tenants who report unsafe conditions, which could add complexity to managing rental properties. As Denver’s housing regulations shift, landlords must navigate these changes carefully. The Denver market is changing weekly from a legal and political perspective. Connect to learn more about these developments.

Denver Q2 State Of The Market (5-150 Units): Transactions: 54 Total Sale Volume ($): $197,122,300.00 Total Units: 1,265 Total SF: 1,229,185 AVG $/Unit: $155,827.91 AVG $/SF: $160.37 AVG Cap: 5.98% AVG Vintage: 1959 Studio Units Sold: 172 Units 1BR Units Sold: 472 Units 2BR Units Sold: 542 Units 3BR Units Sold: 68 Units There has been consistent velocity shown in the market. Much of the acquisitions are coming from out of state buyers. If you are interested in purchasing multifamily or learning about the market, please reach out! Jack.sorenson@matthews.com (720) 800-9778

Amazing chart which outlines the Multifamily current debt holdings and the growth that has taken place over the past year. The MBA reported the multifamily debt rose by $23.74 billion in Q1, surpassing the $14.78 billion increase in Q4. The total multifamily debt has reached 2.099 trillion, up 98.3 billion (4.9%) YoY increase. The overall commercial mortgage debt, including multifamily, grew 0.9% from Q4 2023 to $4.698 trillion, with multifamily debt accounting for 44.7% of the total. Debt is a continuing driver for pricing deals and property performance. Myself and our capital markets team here in Denver has been helping multifamily owners assess their options (rate cap renewal, refinance, sell, short-term equity infusion, etc.) to ensure that they are aware of all business decisions available to them. If you’re interested in exploring your options, I’d love to schedule a 30-minute chat to discuss how we’ve helped our clients create opportunities and maximize leverage for their assets. Jack.sorenson@matthews.com (720) 800-9778