q3 2016 · 2018-10-07 · homeownership rate 62.9% denver avg. annual homeownership rate source:...

Apartment Market Report

Q3 2016

METRO DENVER

DENVER MULTIFAMILYCapital Markets | Investment Sales

jlldenvermultifamily.com@denvermultifam

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METRO DENVERGross Rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Vacancy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Supply and Absorption . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Submarket Gross Rents . . . . . . . . . . . . . . . . . . . . . . . . . . 7Submarket Vacancy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Submarket Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Home Ownership Rate . . . . . . . . . . . . . . . . . . . . . . . . . . 10Annual Housing Permits. . . . . . . . . . . . . . . . . . . . . . . . . 11Population . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

JLLA Team You Can Trust . . . . . . . . . . . . . . . . . . . . . . . . . . 14Unique Set of Skills . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15JLL Multifamily Team . . . . . . . . . . . . . . . . . . . . . . . . . . . 18JLL Multifamily Real Estate Investment Banking Team . . . . . . . . . . . . . . . . . . . . . . . 20JLL PanAm Multifamily Team . . . . . . . . . . . . . . . . . . . . . 21Global Leader. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22Our Culture and Core Values . . . . . . . . . . . . . . . . . . . . . 23Why Choose JLL Capital Markets . . . . . . . . . . . . . . . . . 24Unmatched Global Reach . . . . . . . . . . . . . . . . . . . . . . . 26Multifamily Expertise . . . . . . . . . . . . . . . . . . . . . . . . . . . 28A Multifamily Powerhouse . . . . . . . . . . . . . . . . . . . . . . . 29Multifamily Lending Expertise. . . . . . . . . . . . . . . . . . . . . 30Multifamily Lending Experience . . . . . . . . . . . . . . . . . . . 31Proven Transaction Record and Expertise . . . . . . . . . . . 34

There are a total of 223,000+ units currently in the metro area with another 24,000+ under construction and 25,000+ planned. The highest concentration of new construction is in the Central Business District, Denver Northwest, and Denver Tech Center submarkets. Rent growth continues, but has slowed to 3.5%. Absorption rates continue to outpace historic trends with 2,449 units absorbed this quarter, making it the second best quarter for absorption in 12 years. Overall vacancy decreased

this quarter, however vacancy in the Central Business District increased to 6.88% and is the highest in the metro area. Wheat Ridge currently has the lowest vacancy rate at 2.66%. Rent growth continues throughout the metro area but has slowed to 3.5%, still higher than the 20 year average of 3.0% but lower than the 10 year average of 4.52%. Overall trends have remained strong with rent growth, decreased vacancy and increased absorption rates this quarter.

TABLE OF CONTENTS

DENVER METRO MARKET OVERVIEW

FOR MULTIFAMILY FINANCE, PLEASE CONTACT:

PAT STUCKER | Managing Director+1 303 260 6518 | [email protected]

RAY WHITE | Vice President+1 303 260 6502 | [email protected]

TRAVIS HODGE | Associate+1 303 542 1509 | [email protected]

CLAIRE BOSTICK | Analyst+1 303 542 1524 | [email protected]

Whether you’re looking to buy, sell or finance, our multifamily capital professionals understand commercial real estate, capital markets, and the multifamily investor. Please contact JLL for any of your capital markets needs.

ALEX BUECKING | Managing Director+1 303 542 1507 | [email protected]

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Denver’s coolness factor has made it a top destination and magnet for Millennials.

- The New York Times

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METRO DENVER

-5.00%-3.00%-1.00%1.00%3.00%5.00%7.00%9.00%11.00%13.00%15.00%

$0

$200

$400

$600

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$1,000

$1,200

$1,400

$1,600

Annu

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%

Gros

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ts

Gross Rents Annual Rent Increase % 20 Yr Avg Gross Rent =3.00%

CLASS CCLASS BCLASS AOVERALL

$1,9592016 Q3 Gross Rents

6.12%(y-o-y change)


2.69%(y-o-y change)


6.19%(y-o-y change)


3.58%(y-o-y change)

0.05%(last qtr change)




Note: Figures are for stabilized conventional properties with 50+ units (does not include affordable housing / rent restricted units)Source: Apartment Insights, Axiometrics

GROSS RENTS

Rent growth continues to remain above the 20 year average but has slowed to 3.58%, which is the lowest annual rent growth pace seen since 3rd quarter of 2010.

3.58% ANNUAL RENT GROWTH

Class C product leads the market for annual rent growth with class A product trailing closely behind at 6.12%.

6.19% CLASS C ANNUAL RENT GROWTH

5

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Annu

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Vaca

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Vacancy (%) Annual Change (bps) Base Line for bps = 0

CLASS CCLASS BCLASS AOVERALL

6.02%2016 Q3 Vacancy

80 bps(y-o-y change)







44 bps(last qtr change)




Note: Figures are for stabilized conventional properties with 50+ units (does not include affordable housing / rent restricted units)Source: Apartment Insights

METRO DENVERVACANCY

Vacancy rates remain steady with a 4 quarter average of 5.02%, matching vacancy this quarter. Class C vacancy remains lowest at 3.91% demonstrating the continued flight to affordability.5.02% VACANCY

Wheat Ridge currently has the lowest vacancy of all submarkets in the metro area at 2.66%. There have been only 50 units delivered in Wheat Ridge in the last 4 quarters.

WHEAT RIDGE 2.66% VACANCY

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METRO DENVERSUPPLY AND ABSORPTION

-2000

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4000

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12000

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Supply Change (y-o-y) Absorption (annual)

ABSORPTIONSUPPLY

6,849(y-o-y change)

3.58%(% of existing inventory)

2,449(quarterly)

3.77%(compared to Q3 2015)

7,820(annual)

25.08%(compared to Q3 2015)

1,359(last qtr change)

0.71%(% of existing inventory)

Note: Figures are for conventional properties with 50+ units (does not include affordable housing / rent restricted units)Source: Apartment Insights

QUARTERLY QUARTERLYYEAR OVER YEAR YEAR OVER YEAR

Annual absorption reached 7,820 units this quarter, with only 6,849 units delivered in the last 4 quarters. This means that absorption is still outpacing supply by 971 units.

ANNUAL ABSORPTION OUTPACING SUPPLY

Central Business District has absorbed 1,028 units in the last 4 quarters while it has delivered 1,097 which has resulted in higher vacancy.

CBD ANNUAL ABSORPTION

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$1.20

$1.30

$1.40

$1.50

$1.60

$1.70

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$850

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Gross Rent/Unit Gross Rent/SF

RENT GROWTH(y-o-y change)

8.98%Denver Southwest

8.71%Wheat Ridge

7.71%Cherry Creek

HIGH5.00%

Denver International Airport

0.00%Westminster

0.53%Highlands Ranch/

LOW

RENT GROWTH(last qtr change)

4.28%Washington Park

4.13%Denver Northwest

3.84%Aurora Northeast

HIGH1.25%

Denver International Airport

1.11%Lowry

0.78%Aurora East

LOW

Note: Figures are for conventional properties with 50+ units (does not include affordable housing / rent restricted units)Source: Apartment Insights

METRO DENVERSUBMARKET GROSS RENTS

8

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Vacancy (%) Annual Change (bps) Base Line for bps = 0

VACANCY(y-o-y change)

235 bpsInterlocken

210 bpsDenver South

175 bpsParker

INCREASE

247 bpsDenver Northwest

127 bpsWashington Park

62 bpsLongmont

DECREASE

VACANCY(last qtr change)

163 bpsDenver South

145 bpsDenver International

Airport

106 bpsInterlocken

INCREASE

144 bpsDenver Northwest

106 bpsWashington Park

90 bpsWheat Ridge

DECREASE

Note: Figures are for stabilized conventional properties with 50+ units (does not include affordable housing / rent restricted units)Source: Apartment Insights

METRO DENVERSUBMARKET VACANCY

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METRO DENVERSUBMARKET SUPPLY

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Units

Supply Change (y-o-y) Under Construction Absorption (annual)

MOSTSUPPLY

1,097CBD

842Highlands Ranch /

Lone Tree

745Thornton /

5,753CBD

MOST UNDERCONSTRUCTION

1,028CBD

875Highlands Ranch/

359Cherry Creek

ABSORPTION HIGH

98Denver Southeast

43Aurora East

25Lowry

ABSORPTION LOW

1,878Denver Northwest

1,804Denver Tech

Note: Figures are for conventional properties with 50+ units (does not include affordable housing / rent restricted units).Source: Apartment Insights

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METRO DENVERHOME OWNERSHIP RATE

55%

60%

65%

70%

75%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Aver

age

Annu

al Ho

meow

nersh

ip Ra

te

Denver CO US

63.6%U.S. Avg. Annual

Homeownership Rate

64.2%Colorado Avg. Annual Homeownership Rate

62.9%Denver Avg. Annual

Homeownership Rate

Source: U.S. Census, Q1 2016

With a 62.9% annual average homeownership rate, Denver continues to lag behind Colorado and national averages.

HOME OWNERSHIP

In July 2016 the median home price in the 11-county Denver Metro Area was $354,000, while the average home price sold was $412,312. This is compared to the U.S. median home price of $284,000 and average U.S. home price of $353,600. (DMAR, 2016 and U.S. Census)

LACK OF STARTER HOMES

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METRO DENVERANNUAL HOUSING PERMITS

0

5,000

10,000

15,000

20,000

25,000

30,000

Resid

entia

l Per

mits

(unit

s)

Multifamily SF - Attached SF - Detached 30 YR Average = 16,000

3992015 Single Family Attached

Permits

8,6512015 Single Family Detached Permits

16,00030-year Annual Avg. for

Total Units Permitted

9,9712015 Multifamily Permits

Source: U.S. Census, Metro Denver EDC

51,000 unit deficit

From 2007 to 2013, permitting in the Metro Denver area saw a substantial decrease, creating a 51,000 housing unit deficit when compared to the 30 year historical average.

LACK OF HOUSING

In 2014 and 2015, permitting rose above the historical average by a combined 5,000 units, only 10% of the deficit that was created in prior years.

STILL NOT ENOUGH

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METRO DENVERPOPULATION

0.3%

0.8%

1.3%

1.8%

2.3%

2.8%

Popu

lation

Gro

wth

Rate

Denver CO US

1,500

1,700

1,900

2,100

2,300

2,500

2,700

2,900

3,100

3,300

Metro

Den

ver P

opula

tion

(000

's)

1.7%2015 Metro Denver Population Growth

1.7%2015 Colorado

Population Growth

0.8%2015 U.S. Population

Growth Rate

3,062,5142015 Metro Denver

Population

Source: U.S. Census, Colorado Department of Local Affairs

Over the last 3 decades, Metro Denver has experienced some of the most consistent annual population growth of any metro area.

POPULATION GROWTH

In 2015, Metro Denver was home to nearly 860,000 Millennials, which accounts for 28.1% of the total population.MILLENNIALS

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0%

2%

4%

6%

8%

10%

12%

1,000,000

1,050,000

1,100,000

1,150,000

1,200,000

1,250,000

1,300,000

1,350,000

1,400,000

1,450,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Sources: JLL Research, Bureau of Labor Statistics, Metro Denver EDC

Job growth / loss by sector (12-month change)

-200

600

1,500

2,200

2,400

4,100

5,800

8,200

9,600

11,400

-2,500 0 2,500 5,000 7,500 10,000 12,500

Information services

Financial services

Other services

Manufacturing

Trade, transportation, & utilities

Education & health services

Government

Professional & business services

Leisure & hospitality services

Construction & natural resources & mining

Number of Jobs

Total jobs vs. unemployment rate (seasonally adjusted)

All-time employment peak: 1,448,300 jobs

All-time unemployment low: 2.3%

unemployment ratetotal jobs

Industry employment stratification

Professional & business services, 263,800, 18%

Trade, transportation, & utilities, 261,900, 18%

Government, 191,600, 13%

Education & health services, 180,900, 13%

Leisure & hospitality services, 171,900, 12%

Construction & natural resources & mining,

107,700, 7%

Financial services, 104,400, 7%

Manufacturing, 71,000, 5%

Other services, 55,900, 4%

Information services, 46,100, 3%

Employment statistics: Supersector breakdown (not seasonally adjusted)

Employment statistics: Top 10 largest metro area cities by population

3.2%Metro Denver unemployment rate

3.3%Metro Denver 12-month job growth

3.8%Colorado unemployment rate

2.8%Colorado 12-month job growth

5.0%U.S. unemployment rate

1.7%U.S. 12-month job growth

Metro Denver cities PopulationEmployment Unemployment

number number rate

Denver 649,214 371,991 12,266 3.2%

Aurora 347,654 180,074 6,578 3.5%

Lakewood 147,369 80,455 2,691 3.2%

Thornton 126,280 69,869 2,466 3.4%

Arvada 110,675 62,672 2,053 3.2%

Westminster 110,194 62,685 2,110 3.3%

Centennial 102,764 59,969 1,929 3.1%

Boulder 101,990 59,868 1,734 2.8%

Broomfield 61,824 34,698 1,104 3.1%

Castle Rock 56,389 29,481 906 3.0%

Employment Update

Denver | October 2016 (August 2016 data)

Aug-14 Aug-15 Aug-16Total non-farm 1,363,000 1,409,600 1,455,200Employment 4.0% 3.4% 3.2%Unemployment rate 4.5% 3.6% 3.2%Metro Denver supersectors Aug-14 Aug-15 Aug-16Trade, transportation, & utilities 251,900 3.0% 259,500 3.0% 261,900 0.9%

Professional & business services 248,600 4.5% 255,600 2.8% 263,800 3.2%

Government 179,900 1.6% 185,800 3.3% 191,600 3.1%

Education & health services 168,500 5.0% 176,800 4.9% 180,900 2.3%

Leisure & hospitality services 155,400 4.3% 162,300 4.4% 171,900 5.9%

Financial services 99,000 2.3% 103,800 4.8% 104,400 0.6%Construction & natural resources & mining 94,200 11.6% 96,300 2.2% 107,700 11.8%

Manufacturing 66,100 2.8% 68,800 4.1% 71,000 3.2%

Other services 53,600 4.5% 54,400 1.5% 55,900 2.8%

Information services 45,800 2.9% 46,300 1.1% 46,100 -0.4%

METRO DENVEREMPLOYMENT

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JLL IS A TEAM YOU CAN TRUSTConnect with people, properties and sources of capital to buy or sell Denver-area multifamily properties.We’re passionate about our business. As a tight-knit team of multifamily professionals, we have repeatedly demonstrated market experience in the successful negotiation of deals across the spectrum of multifamily property types and geographies. Collectively, JLL’s Denver Multifamily Team has participated in over $8 billion of successful multifamily transactions on over 90,000 multifamily units. Our team comes from the industry, works for the industry and is, above all, committed to the industry. With deep roots in every facet of the multifamily arena, from sales and financing, to property management, ownership and beyond, we are strongly connected to the capital sources that matter.

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WE HAVE A UNIQUE SET OF SKILLS IN MARKETPLACE

When you select JLL’s Denver Multifamily Team as your business partner you get a team with substantial understanding of all phases of the multifamily investment life cycle. This experience allows the JLL Denver Multifamily team to add unique value to every assignment, no matter how large or complicated the opportunity. Whether developing, financing, buying, or selling multifamily real estate, JLL can help you complete your transaction.

We’ve been principals.

We’ve been operators.

We’ve been developers.

We’ve been lenders.

We’ve raised money.

WE’VE BEEN THE CLIENT.

COLLECTIVELY WE HAVE PARTICIPATED IN OVER $8+ BILLION OF SUCCESSFUL TRANSACTIONS.

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#1 BEST PLACE TO LIVE

DENVER NAMED

18

JLL DENVER MULTIFAMILY TEAM

PAT STUCKER | Managing Director Pat Stucker joined Jones Lang LaSalle in October 2013 following a successful tenure as an Executive Director within Cushman & Wakefield’s Multifamily Advisory Group. Pat is consistently recognized as a top producer for multifamily property sales in Colorado and finished among the top multifamily brokers in the Cushman & Wakefield organization in 2011 and 2012. Prior to joining Cushman & Wakefield, Pat served as a Senior Vice President at AIMCO and Managing Member of Stucker & Company. Over the course of Pat’s real estate career, he has completed transactions on over 50,000 apartment homes and over $4 billion in total sales. Pat earned national designations including: Certified Commercial Investment Member (CCIM) and the Institute Real Estate Management, Certified Property Manager (CPM). Pat earned his BS from the United States Air Force Academy.

RAY WHITE | Vice PresidentRay joined Jones Lang LaSalle from Cushman & Wakefield in September 2013. Over the course of his career, Ray has managed the marketing, underwriting, due diligence and closing of over $4 billion in successful institutional apartment transactions. Previously, Ray was an Asset Manager at GMAC Commercial Mortgage where he evaluated financial performance and loan compliance for multifamily, healthcare, retail, industrial and office properties held in a $500 million lending portfolio and managed the operation of a $400 million lending facility for one of the nation’s largest multifamily tax credit syndicators. Ray earned his BA from DePaul University and his Masters in Real Estate and JD from University of Denver.

19

TRAVIS HODGE | AssociateTravis Hodge joined JLL in May 2014, and is responsible for the underwriting and analysis of multifamily assets for Denver’s Multifamily Team. He is integral to the transactional process including financial analysis and valuation, market analysis, research and due diligence. Prior to joining JLL, Travis spent 5 years as accountant for Specialized Title Services, a boutique commercial real estate firm in Atlanta, GA specializing in title, escrow, closing, legal counsel and tax deferred exchange. In this role, Travis handled the finance, accounting and client investment and relationship duties of the firm.Travis is a participating member of NAIOP’s Colorado Chapter, as well as ULI Colorado. He was a 2014 - 2015 recipient of the ULI Etkin Johnson Student Scholarship for the inaugural year of the program where he assisted the leadership of the 2015 Impact Awards Committee.He received his Bachelor of Business Administration in Accounting from the University of Georgia and his Master of Business Administration in Real Estate and Finance from the University of Colorado.

CLAIRE BOSTICK | AnalystClaire Bostick is an Analyst within JLL’s Capital Markets Group. She is responsible for the underwriting and analysis of multifamily assets for Denver’s Multifamily Team in Colorado and Utah. Claire is integral to the transactional process and has extensive knowledge of multifamily operations. Prior to joining JLL, Claire spent 7 years with Greystar Real Estate Partners in Atlanta and Denver working on site, and most recently as a Market Analyst for the Client Services group. She has completed over 50 due diligence inspections during her time with Greystar on value add, stabilized and class A product in Colorado and Utah. Her expertise is to assist owners and developers to project income and expenses, as well as, identify opportunities within a market, submarket or specific asset. Claire was recognized for her success at Greystar by receiving the 2012 Above and Beyond Award, 2013 Pillar of Excellence Community Award, 2014 Rainmaker Award, and 2015 Rainmaker Award. During her time at Greystar, Claire formed valuable relationships with industry experts in management, ownership and development.

She received her Bachelor of Science in Housing from The University of Georgia.

We’re all about focus.

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BAXTER FAIN | Managing Director Baxter Fain is Managing Director of JLL’s Capital Markets Real Estate Investment Banking group, working with the team’s leadership including Executive Managing Directors Tom Fish, Tom Melody and Mike Melody and partnering with Managing Director George Baker. Baxter secures debt and equity for all property types including office, retail, industrial, hotel, multifamily and self-storage financing. Baxter has been in the commercial real estate finance and development business for over 20 years. Fain comes to JLL from Sunflower Bank where he was a Senior Vice President and Regional President. Prior to that he was a Managing Partner at Trinity One Group. He also spent nearly five years at a global commercial real estate firm. Fain began his career at Goldman Sachs handling loan originations and underwriting for the Midwest region.Baxter graduated from Southern Methodist University in Dallas, Texas with a Bachelor Degree in Finance.

ALEX BUECKING | Managing DirectorAlex Buecking is a Managing Director within the JLL Capital Markets Group in Denver. Alex focuses primarily on debt and equity originations for multifamily properties including market rate apartments, affordable housing, student housing, and manufactured housing property types. Alex works closely with the multifamily team’s executive management including International Directors Dave Williams, Kevin Filter, and Brian Kelleher.Alex has enjoyed a career in commercial real estate finance for more than 17 years during which time he has originated more than $1.5 billion in commercial real estate loans. Buecking joined JLL from KeyBank Real Estate Capital where he was a Senior Vice President and Multifamily Mortgage Banker. Previously, Alex was a Vice President of Finance for Vantage Companies, a Dallas-based real estate development company. Alex began his career in Dallas, Texas, at Guaranty Federal Bank as a Relationship Manager originating and underwriting commercial real estate loans.Alex graduated from Southern Methodist University in Dallas, Texas, with a Bachelor Degree in Finance and was a member of the SMU Men’s Golf Team.

CHRISTINA HORAN | Production AnalystChristina Horan is a Production Analyst for JLL’s Capital Markets Real Estate Investment Banking group, working with Managing Director, Baxter Fain on securing debt and equity for all property types including office, retail, industrial, hotel, multifamily and self-storage financing. Prior to Christina’s current role, she worked in the JLL Chicago office on the Americas Corporate Finance team. In this role, she was responsible for the Americas region’s monthly and quarterly internal reporting as well as the semi-annual budgeting processes. Christina began her career at Commerce Bank in St. Louis, MO working as a credit analyst in the commercial lending group. Christina graduated cum laude from Miami University in Oxford, Ohio with a Bachelor Degree in Finance.

JLL DENVER MULTIFAMILY REIB TEAM

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JLL’s most experienced dealmakers, connectors, multifamily capital specialists...

JEFF PRICEManaging Director

Southwest

DAVID WILLIAMSInternational Director

Midwest

DAVID GUTTINGManaging Director

Southeast

CHRISTINE ESPENSHADEManaging Director

Northeast

PAT STUCKERManaging Director

RAY WHITEVice President

DENVER CAPITAL MARKETS


Southeast


Southeast


Southeast


Southeast

Specialized team of senior executives with an average of 20 years experience who work directly with local teams to execute your transaction

DAVID YOUNGManaging Director

West

JLL PANAM MULTIFAMILY TEAM

22

“JLL has become the world’s leading integrated real estate and investment management firm by listening and responding to our clients…We focus on long-term relationships, not single transactions.”

– Colin Dyer, President and CEO

A GLOBAL LEADER

23

Serve our clients | Support our people | Aspire to leadershipThese values shape our culture.

Vision statementTo be the chosen expert and advisor for those who own, occupy, use and invest in real estate.

Our cultureWe offer you the culture and work environment where you will have the opportunity to learn, grow and do your best work everyday. Your ability to connect with others will be rewarded, your creativity will be valued and your professional contributions will be recognized.

• Banking and Financial Services• Call Centers• Corporate Retail Solutions• Data Centers/Mission- Critical Facilities• Government Investor Services• Project and Development Services• Government Occupier Services• Healthcare• Higher Education• Hotels

• Law Firms• Life Sciences• Logistics and Industrial• Multifamily• Nonprofit• Office• Retail• Self Storage

OUR CULTURE AND CORE VALUES

Core services• Agency Leasing• Capital Markets• Construction• Corporate Finance and Net Lease• Corporate Solutions• Debt and Equity Finance • Energy and Sustainability Services• Integrated Facilities Management• Investment Management• Investment Sales• Lease Administration• Mobile Engineering Services• Property Management• Strategic Consulting• Tenant Representation

Industry and asset specialties

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OfficeIndustrialRetailHotelMultifamilyLandHealthcareSelf Storage

A unified platform focused on results.We’re all about focus. We focus on being the best in our business, we focus on our relationships with the world’s capital sources, we focus on the trends that make our industry tick—but most of all, we focus on our clients. We tailor each service to meet distinct requirements, looking outside the box to the entire lifecycle of assets and tapping into the vast resources we have at our fingertips, seamlessly connecting with our JLL experts and with capital markets worldwide. Using our in-depth local market and global investor knowledge, we focus on your priority capital objectives, delivering best-in-class solutions for clients to maximize the value of their investments.

Corporate Finance and Net Lease utilizes a deep knowledge of finance, accounting and legal principles, net lease structuring and markets to help occupiers and net lease property owners optimize transaction economics and realize asset value. Development and Asset Strategy specialists apply creative dispositions to challenging assets to convert them to productive use, and navigate the complexities of land development, including zoning, entitlements and public incentives.Debt and Equity Financing experts devise innovative capitalization strategies and manage debt and equity placements across all asset types. Investment Sales professionals provide geographic and product expertise to facilitate the efficient sale or acquisition of equity interest in investment properties, and to provide property-level value realization strategies and opinions of value.

WHY CHOOSE JLL CAPITAL MARKETS

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COLORADO IS THE 3RD-BEST STATE FOR BUSINESS

-CNBC, 2016

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42 JLL | One Front Street The JLL | One Front Team 43

MENA

ASIA-PACIF IC

EMEA

AMERICAS

GLOBAL

JLL’s ICG offers unmatched global reachTHE INTERNATIONAL CAPITAL GROUPJLL established the industry’s only group to help globally-oriented clients build international portfolios and relationships over 10 years ago. The ICG is 25+ senior capital markets professionals with C-suite contacts for cross-border opportunities and real estate capital access.The ICG exemplifies how we operate: by leveraging an international reach with a select professional group for a personal experience you won’t find elsewhere.

These professionals have first-hand knowledge of opportunities and international investor contacts, from institutions and sovereign wealth funds to private ultrahigh net worth families.

CONNECTING CAPITAL EVERYDAY• Top real estate advisor to Sovereign Wealth Funds in 2014, independently ranked by Sovereign Wealth Fund Institute SWFI

• �Top�global�real�estate�broker�in�office�investment�sales�in�2014, independently ranked by Real Capital Analytics with $38.8 billion sold,17.3 percent market share and 556 properties sold, the next nearest competitor only sold 268 properties

• Over�$606�billion�of�sales,�acquisitions�and�finance�transactions since financial crisis, of which of 40 percent have been cross-border

• In 2014, $454 million in real estate investment transactions completed every working day around the globe

• Sold to 2,000+ clients globally since 2010

MAKE INTERNATIONAL CONNECTIONS – LOCAL TO GLOBAL

• Connects our clients to unique investment product and capital worldwide

• Integrated global team supporting local JLL capital markets teams across 53 countries

• Employ best practices for a coordinated global deal distribution and marketing campaign to local distribution and domestic process

• Collaborative implementation and consistent service delivery across borders

• Leverages our proprietary research to provide the most incisive global market intelligence

• Develops strong buy-side relationships with clients seeking to invest outside their home region

Steve Collins, WASHINGTON DC

Lucy Fletcher, CANADA

Rob Hielscher, SAN FRANCISCO

Alexandra Bryant, NEW YORK

Pat Casey, WASHINGTON DC

Roberto Patino, SAO PAOLO

Alistair Meadows, SINGAPORE

Darren Xia, BEIJING

Flora Wang, SHANGHAI

Kitty Liu, BEIJING

Miyeon Lee, SEOUL

Simon Storey, SYDNEY

Fadi Moussalli, DUBAI

Arthur De Haast, CHAIRMAN

David Green-Morgan, GLOBAL RESEARCH

Matt Richards, LONDON

Caroline Dehe, LONDON

JLL’S INTERNATIONAL CAPITAL GROUP (ICG) OFFERS UNMATCHED GLOBAL REACH

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42 JLL | One Front Street The JLL | One Front Team 43

MENA

ASIA-PACIF IC

EMEA

AMERICAS

GLOBAL

JLL’s ICG offers unmatched global reachTHE INTERNATIONAL CAPITAL GROUPJLL established the industry’s only group to help globally-oriented clients build international portfolios and relationships over 10 years ago. The ICG is 25+ senior capital markets professionals with C-suite contacts for cross-border opportunities and real estate capital access.The ICG exemplifies how we operate: by leveraging an international reach with a select professional group for a personal experience you won’t find elsewhere.

These professionals have first-hand knowledge of opportunities and international investor contacts, from institutions and sovereign wealth funds to private ultrahigh net worth families.

CONNECTING CAPITAL EVERYDAY• Top real estate advisor to Sovereign Wealth Funds in 2014, independently ranked by Sovereign Wealth Fund Institute SWFI

• �Top�global�real�estate�broker�in�office�investment�sales�in�2014, independently ranked by Real Capital Analytics with $38.8 billion sold,17.3 percent market share and 556 properties sold, the next nearest competitor only sold 268 properties

• Over�$606�billion�of�sales,�acquisitions�and�finance�transactions since financial crisis, of which of 40 percent have been cross-border

• In 2014, $454 million in real estate investment transactions completed every working day around the globe

• Sold to 2,000+ clients globally since 2010

MAKE INTERNATIONAL CONNECTIONS – LOCAL TO GLOBAL

• Connects our clients to unique investment product and capital worldwide

• Integrated global team supporting local JLL capital markets teams across 53 countries

• Employ best practices for a coordinated global deal distribution and marketing campaign to local distribution and domestic process

• Collaborative implementation and consistent service delivery across borders

• Leverages our proprietary research to provide the most incisive global market intelligence

• Develops strong buy-side relationships with clients seeking to invest outside their home region

Steve Collins, WASHINGTON DC

Lucy Fletcher, CANADA

Rob Hielscher, SAN FRANCISCO

Alexandra Bryant, NEW YORK

Pat Casey, WASHINGTON DC

Roberto Patino, SAO PAOLO

Alistair Meadows, SINGAPORE

Darren Xia, BEIJING

Flora Wang, SHANGHAI

Kitty Liu, BEIJING

Miyeon Lee, SEOUL

Simon Storey, SYDNEY

Fadi Moussalli, DUBAI

Arthur De Haast, CHAIRMAN

David Green-Morgan, GLOBAL RESEARCH

Matt Richards, LONDON

Caroline Dehe, LONDON

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Multifamily expertise

Maximize returns on your investment by collaborating with our capital markets experts—whether you’re looking to buy, sell or finance. Our multifamily capital professionals understand commercial real estate, capital markets, and the multifamily investor. With significant knowledge in investment sales, debt and equity finance and loan servicing, you will find the right opportunities, capital solutions and prompt advice for your multifamily assets. We bring together specialized talent—senior executives each with years of direct experience in capital markets, local markets and real estate investment banking. Collectively, we handle multifamily transactionsspanning the full spectrum of geographies and property types.

Capabilities for any stage of the multifamily assetOur team consists of sales and financing professionals who work alongside one another and partner regularly to help you find the right opportunities, capital solutions and prompt advice through one diverse, integrated platform.

Tailored strategies for multifamily salesWe take on a personal approach to understand a client’s disposition and acquisition goals. Understanding the marketable attributes of the asset, we effectively capture a property’s unique value and positioning. Founded on industry-leading market analysis, valuation services and investor intelligence, our facilitation of the sale or disposition of investment properties ensures optimum price and certainty of closing.

Deep relationships with capital sourcesAs one of the nation’s largest providers of debt and equity capital, we partner with a wide array of financial providers, including Fannie Mae, Freddie Mac and HUD/Ginnie Mae to solve your transaction needs.

Capital Marketsus.jll.com/multifamily

*Volumes include agency and non-agency financing for property types multifamily, seniors housing and student housing.

• Land sales• Mid-rise• Mixed-use • Portfolios

• Condos• Development sites• Garden• High-rise

By the numbers

$13.4BTotal multifamily volume in 2015

$7.5B Total U.S. multifamily sales in 2015

$5.9BTotal U.S. multifamily financing in 2015

$16B Loanservicing portfolio 375 Multifamily

transactions in 2015

• Seniors housing• Student housing• Townhomes

MULTIFAMILY EXPERTISE

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Committed to your distinct investing and financing requirements, our team consists of sales and financing professionals who partner regularly to provide multi-service delivery to clients.

We are highly specialized and deliver solutions through one diverse, integrated platform.

• Acquisition financing• Bridge loans• Construction financing• Equity placement• Fannie Mae lending• FHA lending• Freddie Mac lending• International capital sourcing• Investment sales

• Joint venture equity• Loan servicing• Market analysis and underwriting • Mezzanine debt• Opinions of value• Permanent financing• Portfolio structuring support• Recapitalization strategies

A MULTIFAMILY POWERHOUSE

Services

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Multifamily lending expertise

JLL Capital Markets is one of the nation’s largest providers of debt and equity capital. We partner with a wide array of financial providers to connect you to a full range of competitively-priced, reliable mortgage products for the acquisition, refinance or moderate rehabilitation of multifamily communities.

Providers• CMBS• Commercial banks• Fannie Mae• Freddie Mac

Deep relationships connecting you to capitalWe have the most experienced financing professionals in the industry who foster and maintain relationships with the full gamut of lending and equity sources. These relationships are longstanding—extending three decades with Fannie Mae, Freddie Mac and HUD/Ginnie Mae.

Customer-centric loan servicing We offer loan underwriting, asset management and loan servicing capabilities in-house through a group of tenured experts. These functions are maintained in close coordination with your JLL representative, giving you direct access to your loan servicing team and responsiveness in the process.

• In affordable housing we assist developers in structuring transactions through various issuers and local, state and federal government agencies to ensure an optimal structure and smooth closing.

• In seniors housing we can provide the full spectrum of assets, including age-restricted, independent living, assisted living, memory care, skilled nursing and continuing care retirement communities.

• In market rate housing we specialize in working within the Fannie Mae, Freddie Mac, and FHA frameworks to quickly design your best financing solution and drive it toward execution with certainty.

No matter the complexity of your project, we identify creative financing solutions and can secure the entire capital stack for multifamily assets.

• HUD/GNMA• Life companies• Pension funds• Specialty finance companies

300+U.S.

multifamily transactions

in 2015

$6B U.S. multifamily

financing in 2015

$7.5B U.S. multifamily sales

in 2015 200++

dedicated multifamily

professionals

$16B loanservicing portfolio

Capital Marketsus.jll.com/multifamily-lending

JLL Agency/GSE lending platforms:

Agency/GSE 2015 loan production

Freddie Mac $ 1,514 M

Fannie Mae 957 M

HUD/Ginnie Mae 396 M

Total $ 2,867 M

Agency/GSE Loan servicing portfolio

Freddie Mac $ 6.9 B

Fannie Mae 5.3 B

HUD/Ginnie Mae 2.3 B

Other 1.5 B

Total $ 16 B

MULTIFAMILY LENDING EXPERTISE

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Multifamily lending expertise

JLL Agency/GSE licenses

• The individuals comprising the multifamily lending platform have up to 30 years of experience with HUD and up to 20 years of experience with Freddie Mac and Fannie Mae. This experience, and our significant loan closing volumes, translates into relationships that allow JLL to receive quick attention from the GSEs and HUD, when necessary, regarding underwriting and credit matters.

• JLL is not simply an Agency/GSE lender, but rather, JLL can fulfill all of your debt and equity capital needs, including construction loans, bridge loans, mezzanine loans. In 2015, JLL closed $2.9 billion of Agency/GSE debt, and another $4.5 billion ofother debt and equity placements.

• JLL services its own Agency/GSE mortgages, with no other domestic, nor offshore, outsourcing entity behind the scene doing the loan servicing. Unlike many competitors, JLL’s servicing team is managed within the multifamily and commercial real estate debt team, thus providing ready access for our mortgage bankers and brokers to assist customers with any servicing issues. While a customer will develop relationships inside of our loan servicing team, he may also rely on his direct relationship in JLL to assist. After all, the closing of a loan is not a one-time relationship, but the beginning of a long-term relationship for the life of that loan.

• JLL Capital Markets prides itself on being a high-touch platform for its clients. Our goal is not be the biggest, but to be the best.

Why use JLL’s Agency/GSE lending capabilities

In the fall of 2015, JLL acquired Oak Grove Capital, bringing on board its 120 employees in eight offices. With the Oak Grove Capital acquisition, JLL is now a nationwide lender for all Agency/GSE business, with all disciplines/expertise in-house, and geographic waivers from Freddie Mac are readily available for clients which are active with JLL.

Market rate multifamily housing Affordable housing Seniors housingFannie Mae National

Fannie Mae National

Fannie Mae National

HUDNational

HUDNational

HUDNational

Freddie Mac- Florida- Georgia- Maryland- Virginia- Texas

- District of Columbia - Minnesota- North Dakota- South Dakota- Wisconsin

Freddie Mac National

Freddie Mac National

- Geographic waivers available

Capital Marketsus.jll.com/multifamily-lending

MULTIFAMILY LENDING EXPERIENCE

32

We are a full-service mortgage banker and equity provider, with loan origination, underwriting, asset management and loan servicing capabilities and specialize in permanent, construction, structured and alternative financing products.

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PROVEN TRANSACTION RECORD AND EXPERTISE

PROMENADE AT HUNTER’S GLEN264 Units in Thornton, COSold 20151

THE GROVE AT CITY CENTER420 Units in Aurora, COSold 20152

RIVERTON ON THE PLATTE316 Units in Sheridan, COSold 20153

STERLING UNIVERSITY PEAKS384 Units in Boulder, COSold 20154 FALLS AT LAKEWOOD

96 Units in Lakewood, COSold 20155

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SANDPIPER357 Units in Westminster, COSold 20156

SUNSET PEAK184 Units in Thornton, COSold 20157

LEGACY HEIGHTS418 Units in Denver, COSold 20148

ONE DARTMOUTH418 Units in Denver, COSold 20149

TAMARAC VILLAGE564 Units in Denver, COSold 201410

JLL DENVER MULTIFAMILYVisit our website for more information:

JLLDENVERMULTIFAMILY.COM

Follow us on Twitter for up-to-date market information:

@DENVERMULTIFAM

CONTACT:

About JLLJLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. A Fortune 500 company with annual fee revenue of $5.2 billion and gross revenue of $6.0 billion, JLL has more than 280 corporate offices, operates in more than 80 countries and has a global workforce of more than 60,000. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 4.0 billion square feet, or 372 million square meters, and completed $138 billion in sales, acquisitions and finance transactions in 2015. Its investment management business, LaSalle Investment Management, has $58.3 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.

FOR MULTIFAMILY FINANCE, PLEASE CONTACT:

ALEX BUECKING | Managing Director+1 303 542 1507 | [email protected]

PAT STUCKER | Managing Director+1 303 260 6518 | [email protected]

RAY WHITE | Vice President+1 303 260 6502 | [email protected]

TRAVIS HODGE | Associate+1 303 542 1509 | [email protected]

CLAIRE BOSTICK | Analyst+1 303 542 1524 | [email protected]

q3 2016 · 2018-10-07 · homeownership rate 62.9% denver avg. annual homeownership rate source:...

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