Friday, February 21, 2014

Housing News Digest, February 21

Higher housing costs levitate Denver-Boulder inflation rate Higher rents and skyrocketing natural-gas prices overcame a drop in gasoline prices to push the overall Denver-Boulder-Greeley Consumer Price Index up 2.8 percent in the second half of 2013, the U.S. Bureau of Labor Statistics reported Thursday. Shelter costs, which have a heavy weighting in the index, rose 4.9 percent and were the biggest driver of inflation in the second half of the year, according to the report.

  Fitzsimons urban renewal area plan amended to finance blight area The large financial appetite of the Fitzsimons Life Science District on the Anschutz Medical Campus has forced Aurora city planners to dissect the original 578-acre redevelopment site into smaller projects with fresh public finance options. "As the Health Science District continues to grow and expand, redevelopment activity in the Fitzsimons boundary area ... has lagged behind what was initially projected for the area," said Andrea Amonick, director of development services in Aurora.

  Embrey Begins Construction on First Multi-Family Development in Ken Caryl in More Than a Decade DENVER — Construction has begun on the first apartment community ever to be built in Denver, Colorado’s prestigious Ken Caryl Ranch neighborhood. It’s the first such development in the submarket in the past 13 years. Designed and built by San Antonio-based Embrey Partners, the first units are scheduled for occupancy in early 2015.

  Pembrook Capital Management Provides $18.577 Million Bridge Loan for Acquisition of Mountain Vista Multifamily Property in Lakewood, Colorado NEW YORK, Feb. 18, 2014 /PRNewswire/ – Pembrook Capital Management, LLC (Pembrook), a commercial real estate investment manager that provides financing throughout the capital structure including first mortgages, mezzanine, bridge loans, note financings, and preferred equity for most property types, announced the closing of an $18.577 million bridge loan to facilitate the acquisition of Mountain Vista, a 98% occupied, 257-unit multifamily property located in Lakewood, Colorado, a submarket of Denver. The funding from Pembrook will allow the buyer to acquire the property and complete interior renovations to the apartment units. In addition, the buyer will also be able to finalize exterior renovations that include clubhouse/office construction, roof replacements, repairs to stair landings and catwalks, asphalt repairs, clubhouse equipment/furniture, and exterior paint.

  Axiometrics Reports Apartment Effective Rent Growth Weakening in Urban Core as 2014 Deliveries Begin Effective Rent Growth and Occupancy Axiometrics' latest report shows that annual effective rent growth in January was essentially flat as compared to December's rate of 2.7%. One year ago the annual growth rate was 3.6%, and it has slowed in eight of the last 12 months. The national rent growth rate peaked at 5.3% in June 2011. Out of the top 121 MSAs, 24 had annual effective rent growth in January greater than 5.0%, with markets in Florida, California and Colorado continuing their recent strong increases. Naples ranked first with an annual growth rate of 14.5%, followed by Santa Rosa at 9.2% and San Jose at 8.8%. Other MSAs with an annual growth rate greater than 5.0% included: Portland, OR (8.6%) Oakland, CA (8.3%) Miami, FL (7.9%) North Port, FL (7.5%) Boulder, CO (7.2%) Denver, CO (7.1%) San Francisco, CA (6.1%)