Chicago-based Origin Investments is bullish on the Denver apartment market. The firm currently has three developments under construction, a fourth property under management and is continuing to look for opportunities. The Denver market has a lot of appeal, with economic and job growth, affordability and an attractive local culture and lifestyle.
"The Denver market is a great place to be for a variety of reasons, including its dynamic, growth-oriented job market, a great work-life balance and excellent schools throughout the area," Tom Briney of Origin Investments, tells GlobeSt.com. "With the weather, lifestyle and mountains all contributing to the Denver area appeal, this is a place where people want to live. When all factors are considered, the Denver area is far more affordable than most people realize and is comparable with many other markets. In fact, it's not uncommon for people to take the leap to move here and figure everything else out later. You can't say that about a lot of other markets."
Origin's most recent investment is a 280-unit, $68.8 million multifamily development, which the firm is developing in partnership with Boulder-based Massimino Development. Through the end of 2020, it plans to continue to focus on infill opportunities. "Right now, the opportunity for in-fill suburban locations is driving our strategy as we pursue activity, through the end of this year and into 2020," says Briney. "With what we already are considering and our ability to move quickly through the acquisition process, we're optimistic that we'll be able to complete a couple of additional transactions and/or developments by the end of the year or into 2020."
With mostly luxury development in the last few years, Origin is seeing the most opportunity for affordably priced new construction. "One of the interesting dynamics of the Denver apartment market is that a considerable amount of the existing product is being bought and sold at levels at or above replacement cost," says Briney. "At Origin, our overarching philosophy is that we'd rather have the newest product in the marketplace at a more attractive basis, in locations, which are in the path of growth. At the same time, we continue to look at and evaluate existing product in the event that assets are appropriately priced and have tremendous upside potential."
This demand is centered in the Denver and Denver-Boulder corridors, where there is the highest concentration of jobs. "There are not nearly as many opportunities to the south, but that is an area that we like a lot because of the schools, job growth and strong renter profiles," adds Briney. "Suburban path of growth areas, such as the Gateway submarket near Denver International Airport or Parker are providing opportunities to build class A housing with affordable rents, while still providing residents with access to amenities and quality jobs."
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Kelsi Maree Borland
