North End in Louisville
Markel Homes’ North End neighborhood is Louisville’s first new community in 20 years – a remarkable milestone.
North End
Markel Homes’ new North End community is well sited off South Boulder Road at 95th Street, close to hiking and biking trails, open space and downtown Louisville, with knockout views of the mountains.
“This is an excellent location – with the convenience of shops and services nearby,” says sales manager Michele Steward. “It’s easy to get to Denver, Boulder and the mountains. And it’s a great place to raise kids – the schools are part of the Boulder Valley School District.”
At North End you’ll see fresh Colorado-inspired architecture, in single-family homes and town homes. All come with quality interior finishes and amenities. They are constructed with the environment in mind – green built and Energy-Star® rated, which means healthier indoor air, lower energy bills, reduced pollution and less water usage.
Single-family homes with alley-loaded garages are offered in ranch, main-floor master and two-story designs, ranging from 1,698 to 2,557 finished square feet. The optional basement finish can add bedrooms, a recreation area/media room and storage. Or, Markel Homes can help buyers design and build their own custom home.
Easy Living
Town homes feature an attached two-car garage, unfinished basement and generous outdoor spaces, 10-foot ceilings, front porch and patio, and range from 1,718 to 1,799 finished square feet. And, town-home living means no mowing, shoveling and weekend repair work. Landscaping, snow removal and building maintenance are handled by the Home Owners Association, not the owners themselves. “If you’re downsizing, you don’t have to feel that you’re giving up space and amenities,” says Steward.
Pricing is sensible at North End. Town homes and duplexes start in the low $300,000s, single-family residences in the low $400,000s. It’s an opportunity to buy a brand-new home in Louisville, which is otherwise almost impossible.
A Feeling of Community
North End has become a real community. Last month the homeowners organized the first annual North End block party. In attendance were Josie Heron and her husband, Matt, and their two children; the family just moved into their single-family home in August.
Josie Heron says of the block party: “It was fabulous! We’ve moved a lot and were always unconnected from neighbors. I was hoping there would be other children here, and at the block party I met so many people and found that there are around four two-year-old girls within about six houses from ours. So my daughter now has a play group!”
The Herons, who moved here from Miami, had chosen North End mostly because of Markel’s green building practices. “My husband is a professional engineer working to make other buildings sustainable,” his wife says. “So of course we got a green home.”
Heidi Cogswell, a North End town home owner since July, also finds that North End is a friendly community. “I’ve met everyone in my building. It feels like home,” she says.
Cogswell, a nurse, had owned a condo in Boulder and then a single-family house elsewhere in Louisville. “The town home here in North End is perfect; it’s the same square footage as my house, but feels cozier. Louisville has more of a community feel than Boulder, which is a university town and more transient. It’s very quiet here in Louisville, very peaceful. I’ve got a well-built home, and it gives me peace of mind.”
Markel Homes
Markel Homes, one of Colorado’s premier homebuilders, plans, develops and builds Colorado neighborhoods that integrate the natural landscape and comfortable lifestyle of the West. Innovative design and distinctive architecture are characteristics of a Markel Homes community, along with quality construction and green-built practices. Markel Homes is a homegrown Boulder company that has built homes in various locations in Boulder County and in Fort Collins.
Visit North End
The sales office is open daily from 11 a.m. to 6 p.m., at 2411 Rose Court, Louisville. For more information, contact Michele Steward by phone (303.604.9196) or email (Michele@MarkelHomes.com). To learn about move-in-ready homes and town homes, visit www.MarkelHomes.com.
The Seller's Dilemma: Cash-Out and Pay Taxes or Exchange and Defer
In uncertain financial times such as these, someone who is fortunate enough to have a buyer for one’s investment property, is faced with an important decision to make. The choice to be made, prior to the sale of your real property, comes down to, cash-out and pay taxes, or exchange into another property, and defer taxes. This is no small decision, as a significant portion of your proceeds from the sale could be lost to taxes, if you do not plan ahead.
Anyone who has owned investment real estate, whether a student rental, a small apartment building, an office building or a strip retail center, knows that two of the most demanding aspects of being a landlord are dealing with tenants and maintaining property. For many, being a real estate investor appears a Catch-22: you want out, but to get out you must give away the fruits of what you have worked so hard to build. Compounding the difficulty of this decision is forecasting whether commercial real estate has bottomed and whether you expect marginal tax rates to increase or stay where they are.
1031 Exchange. The IRS Code allows you to exchange one real estate investment asset for another while deferring the gain and depreciation recapture on the sale of the first property. With 15% federal capital gains tax, plus state taxes (4.63% in Colorado), plus the recapture of depreciation at your ordinary income tax rate, the potential for deferring taxes is huge…particularly if you have held the property for many years. On the sale of an investment property that has been held long enough to generate significant appreciation while a significant amount of depreciation has been taken, it is not unusual for 30% to 40% of the proceeds from the sale to be paid in taxes if the seller does not 1031 exchange into another property.
The IRS Code says properties eligible for a tax-deferred exchange must be like-kind. For real estate held for investment, that gives you a lot of latitude. An apartment building you own out-of-state can be exchanged for an office building in your state of residence. Raw land can be exchanged for a fully-developed building. Your 100% ownership in the building you are selling can be divided into two or three properties to create diversification. As long as the exchange is done properly the options for tax-deferred investments are limitless.
Replacement Property. Locating and securing your 1031 replacement property must be done swiftly, skillfully and knowledgeably. The replacement property must be identified in writing within 45 days of the sale of your relinquished property, and then the closing on the purchase of the second property must occur within 180 days of the sale of the relinquished property. The process of selecting your replacement property should begin as soon as you know you have a solid buyer for your replacement property. You do not want to wait until day 44 to begin looking, or you are likely to come up empty handed.
If you are looking to let go of the hassles associated with being a landlord, then you should focus search on Net-Leased properties. Such properties can be purchased as fractional interests (also known as Tenant- In-Common (TIC) interests) or as ‘whole’ properties. Fractional interests are available in retail centers, multi-family housing, and smaller medical buildings. Generally, you will need a minimum of $50,000 in cash to purchase a fractional interest such as this.
‘Whole’ Net-Leased properties are often the separately-owned pad sites of larger retail centers. It could be the real estate for a Family Dollar, a Big-O Tire Store, Good Times Restaurant or a Starbucks. One of the classic Absolute-Net-Leased properties for the larger buyer is the real estate housing a Walgreens pharmacy. In general, you will need $500,000 or more in cash to purchase a quality ‘whole’ Absolute-Net-Leased property.
Obtaining Expertise. Your analysis of whether to sell or exchange begins with an assessment of your tax liability by your tax accountant and/or financial planner. If you decide to investigate a 1031 Exchange, two essential members of your team are, (1) an investment real estate broker who can provide you with and help you evaluate your replacement property options, and (2) a top-notch Exchange Qualified Intermediary, QI for short. With the right expertise, you can get a clear picture of your tax consequences, and if choose the 1031 route, you can preserve your hard-earned equity for yourself and your heirs.
Scridb filterTen Commercial Real Estate Terms You Should Know
Whether you own or rent your commercial space, property costs are one of the largest business over- head expenses. That’s why it’s important to comprehend the full ramifications of taking over the title to a property or entering into a lease agreement. Before you sign a lease, work with a commercial real estate broker with a proven track record, and consult with an attorney skilled in real estate law. You should also familiarize yourself with some common real estate terms:
1. Accord and Satisfaction.
The settlement of an obligation. An accord is an agreement by a creditor to accept something different from or less than what the creditor feels he or she is entitled to.
2. Broker.
An agent who brings together a buyer and a seller, or a landlord and a tenant, in a real estate transaction. All brokers must be licensed by the state in which they work. Most work on commission, and the landlord or seller usually pays the fee.
3. Concessions.
Benefits or discounts given by the seller or landlord of a property to help close a sale or lease. Common concessions include absorption of moving expenses, space remodeling or upgrades (also called “build-outs”), and reduced rent for the initial term of the lease.
4.Default.
The non performance of a duty or obligation that is part of a contract. The most common occurrence of default on the part of a buyer or lessee is nonpayment of money when due.
5. Escalation clause.
A clause in a lease that allows the landlord to increase rent in the future. Rent increases dictated under an escalation clause may be charged in various ways, including:
- A fixed increase over a definite period
- A cost-of-living increase tied to a government index, such as the tax rate
- An increase directly related to increases in operating the property
6. Lease.
An agreement by which the owner of a property (the “lessor”) grants the right of possession to a tenant (the “lessee”) for a specific period of time (the “term”) for a predetermined amount of money (the “rent”). A “lease-hold estate” is the space occupied by the tenant. Common types of leases include:
- A straight, or flat, lease, which stipulates that the same periodic payment (usually monthly) be made for the entire term of the lease.
- A percentage lease, which uses a percentage of the net or gross sales to determine the monthly rent. This is most often used in retail properties and with a minimum base rent.
- A net lease, which requires the tenant to pay maintenance, taxes, insurance and so on, along with a fixed rent. This is also called “net-net-net” or “triple net.”
7. Lien.
A legal claim filed against a property for payment of a debt or obligation. If a property owner fails to pay a creditor, for example, the creditor can place a lien on the property. A lien can halt the sale of a property.
8. Negotiation.
The transaction of business aimed at reaching a meeting of the minds among the parties; the act of bargaining. A real estate transaction illustrates the negotiation process: The first offer received for a property often is considered merely an intention to deal. Thereafter follows a series of counter-offers leading up to the consummation of the deal. Usually, however, negotiation takes place only if the broker’s efforts have proceeded to the point where the prospect is considered a likely buyer or tenant.
9. Sandwich lease.
A leasehold estate in which the sandwich party leases the property from the fee owner or another lessee and then sublets to the tenant in possession, thereby maintaining a middle, or “sandwich” position. The sandwich party is the lessee of one party and the lessor of another; thus he or she is neither the fee owner nor the end user of the property. It is a lease occupying a position within three or more leasehold interests in a property.
10. Sublease.
A lease given by a tenant for some or all of a rented property. For example, if a tenant rents 20,000 square feet but only ends up needing 10,000 square feet, they may want to sublet the extra space for some or all of the remaining term of the lease, providing they continue to occupy and pay rent for the property.
Calmante in Superior
Andrew Peabody and Karen Fisher knew they wanted to make a move to a home that better suited their lifestyle. “But we were looking for something unique, not a cookie-cutter home,” Peabody says. “We weren’t really finding what we wanted until we visited Calmante. When we saw the homes there, we knew instantly that this was the place.”
Peabody, a hairstylist, and Fisher, a physical therapist, have a very active lifestyle, which includes spending time at their condo in Breckenridge, competing in triathlons, and teaching ski lessons. Calmante’s low-maintenance living was very important in their buying decision, as well as an abundance of panoramic views, open space and miles of hiking and biking trails.
The fabulous new community of 75 luxury townhomes, nestled on a gentle slope in Superior, is perfectly situated just minutes from shopping at Flatiron Crossing, several tournament-class golf courses, a 150,000-square-foot athletic club and the Interlocken Business Park.
Each Calmante home features generous spaces filled with light, exquisite materials and finishes, private patios and courtyards and extensive customization opportunities. Four floor plans, ranging from 3,147 to 3,585 finished square feet, include several ranch designs and a two-story plan.
Peabody and Fisher chose a Boulder Falls ranch floorplan, which features a main level master with private deck or patio, five-piece bath and generous closet space. A home office, laundry room, cook’s kitchen with center island and walk-in pantry, and formal dining room and private courtyard complete the main floor, which in finished with hickory floors throughout. An elegant curved stairway opens to the lower level with wet bar and media room.
“We really like the open floorplan and the exceptional detail work. Our home was move-in ready and the finishes suited us perfectly. Karen loves the kitchen and really appreciates having a laundry room on the main floor,” Peabody says. “Our buying experience was great, too. The people at Calmante are easy to work with and there was no pressure.”
The move to Calmante has really improved the couple’s social life as well. “In just the past few weeks, we’ve gone to a couple ball games, had dinner in Denver and gone to Cirque de Soleil,” Peabody says.
More Exciting Home Styles
In addition to the Boulder Falls ranch plan, Calmante offers The Cascade and The Brook, and some are available for immediate move-in.
Cascade homeowners enjoy its grand sense of scale that starts the moment you enter. With 3,301 square feet on two levels, the main floor offers gorgeous walnut floors, a spacious great room with kitchen and dining area that open to a private courtyard, and a master suite with its own luxurious private deck. The upper level includes two bedrooms, two baths and a generous loft. The walkout lower level features a wet bar and an abundance of natural light.
The two-story, 3,183-square-foot Brook is a three-bedroom, three-and-a-half bath contemporary plan with upper level master retreat and second bedroom with full bath. The home’s gallery entry leads to an open kitchen, formal dining room and great room with adjoining study.
Hardwood floors complement the main level, and there’s even an option to add an elevator if buyers desire. An appealing Juliet balcony overlooks the Brook’s private courtyard. These move-in ready homes start with a price of $540,000 and up.
“Calmante townhomes live like single-family homes,” Leslie Reed, community sales manager says. “You can’t find anything else like this available in the Front Range, with these high-end features, the perfect location and a low-maintenance lifestyle. It’s been great to see our community develop and come to life.”
Now is the time to discover Calmante in Superior
Four homes are currently available at Calmante, each attractively priced for immediate move-in. There’s no better way to appreciate the value that these beautiful homes offer than to see them for yourself.
To arrange a personal showing of Calmante’s four model homes, call Leslie Reed at 303.242.3199. The sales center, at 2701 Calmante Avenue in Superior, is open Sunday from 11 a.m. to 6 p.m., Monday noon to 6 p.m., and Tuesday through Saturday from 10 a.m. to 6 p.m.
For more information on Calmante, visit www.LiveCalmante.com.
Silver Creek in Lafayette Grand Opening
Markel Homes is building an exciting new neighborhood, Silver Creek, in a prime location in Lafayette, near Baseline Road and Highway 287. The residential community features green-built, Energy Star® homes and cottages (smaller-size homes) at affordable prices. Residents can leave their cars at home and walk or bike to shops, restaurants, Old Town Lafayette, parks and trails, the public library and Bob Burger Recreation Center. Life doesn’t get more convenient than this.
Grand Opening Tomorrow
“Markel Homes is hosting a grand opening tomorrow, Saturday, Sept. 12, from noon to 4 p.m.,” says Sales Manager Asa Welch. “We invite the community to tour Silver Creek’s two new model homes and find out about all our homes and special offers. There will be live music, pizza and drinks, and great giveaways – including restaurant gift cards, Bob Burger Rec Center punch cards, grocery gift certificates, coffee gift cards and more. Please come join us for a fun afternoon!”
Choose from a Variety of Styles and Lots
The first building phase at Silver Creek comprises 60 single-family homes. There are six floor plans to choose from – three ranch and three two-story styles. Also, Markel is releasing the first two in a series of cottages – the ranch-style Wildrose and two-story Lavender.
Most cottage homes will be single-level, with open and contemporary floor plans that include two or three bedrooms, in the 1,200- to 1,600-square-foot range. Architectural styles range from urban contemporary to newwest post and beam, and classic with a more traditional feel.
Every Silver Creek home and cottage has a garage, basement and back yard – the yard, a hard-to-find luxury in new communities. Early buyers may choose their home and their lot, and select their finishes.
“We build green,” Welch says, “with a variety of ranch and two-story Energy-Star® rated homes and cottages to choose from, with options such as solar panels and solar hot water heaters, for environmental conservation and lower energy consumption.”
Prices start in the $300,000s.
Available Homes
“We have four great homes available that would all qualify for the first-time homebuyer federal tax credit, as closing on any of them could occur before the December 1 deadline,” says Welch. The Snowcap, priced at $289,682, is a small ranch home with an open floor plan with three bedrooms, two bathrooms, a large patio, vaulted ceilings and lots of windows. It is under construction and will be completed by Nov. 15. The Skypilot, for $318,651, is a two-story home available now that offers hardwood floors, designer finishes, all rear-yard landscaping and lovely views. Two lucky buyers will be able to get into brand-new homes for significant financial savings.
Two more homes are available for quick move-in: Wildrose Cottage is a cozy ranch with 1,481 square feet and plenty of southern exposure, hardwood floors throughout, granite countertops, patio trellis, professionally selected designer finishes and more. With an estimated completion date of Nov. 15, it is priced at $399,900. The two-story Redbud home offers 1,957 finished square feet, three bedrooms, two and a half bathrooms, hardwood floors throughout the main level, a large fully-landscaped back yard, high ceilings, open floor plan with large kitchen island, oversized garage, and beautiful master suite with huge walk-in closet and five-piece bath. Available now, it is priced at $399,900.
Financial Incentives
Valuable builder incentives, along with the first-time homebuyer tax credit, low interest rates, and the opportunity to purchase in an up-and-coming neighborhood in a great location, are all reasons to take a look at Silver Creek.
“Our homes and cottages present an affordable alternative for those who are drawn to, or want to stay near, all that the Boulder-area has to offer – easy access to Denver, the mountains, trails and open space, gorgeous back-range views, shopping, great restaurants and recreation,” says Welch.
Markel Homes
Silver Creek comes from Markel Homes Construction Company, the designer of North End in Louisville and Dakota Ridge Village and Northfield Commons in Boulder, among many distinguished neighborhoods. Markel Homes has been a leader in planning and creating Colorado neighborhoods for more than 30 years. Its trademark is distinctive design, architectural variety and compelling interiors that mirror the natural beauty of Colorado. It values parks, trail access and open space in the neighborhoods it develops.
Visit Silver Creek in Lafayette
Silver Creek is located just north of Baseline Road, east of Hwy. 287, and west of 111th Avenue. From Hwy. 287 and Baseline Road, go north to Diamond Circle, east to Cabrini Drive, north at the stop sign. Follow Cabrini to the Sales Center on the left-hand side at Cordova Court.
The Sales Center is located at 590 Cordova Court. It is open Saturday through Wednesday, 11 a.m. to 6 p.m. Call 303.449.0191 or e-mail the manager at Asa@MarkelHomes.com. Visit the Markel Web site, www.MarkelHomes.com, and click on “neighborhoods” for more information about Silver Creek.
Scridb filterThe Arête Luxury Residences
Imagine enjoying a leisurely dinner at your favorite downtown restaurant, then strolling homeward down the Pearl Street Mall, perhaps taking in an art opening or just people watching. In the morning, walk or jog beside Boulder Creek, just steps from your front door, then stop in at your favorite coffee shop. Use Boulder’s world-class public transportation system to get around town, or stay home and entertain guests against a background of sweeping Flatirons views.
This idyllic lifestyle is reality for residents of The Arête, an unsurpassed collection of 22 luxury residences on the corner of 11th and Canyon in downtown Boulder. Stephen Tebo, developer of The Arête, describes these luxury residences as “the finest building, in the best location, that will ever be built in downtown Boulder.”
The Arête (pronounced “uh-Rett”) takes its name from a Greek philosophy concept of living up to one’s highest potential, and this ideal is integrated in every detail. Residences at The Arête range from 1,006 to 5,000 square feet and are being offered from $685,000 to over $4 million.
Nineteen exclusive residences are being created on the second and third levels, with an additional three very special penthouse suites planned for the fourth level. The building’s exterior is finished with Kansas limestone, Colorado flagstone siding and features extensive wrap-around decks with stunning Flatiron and downtown views.
The three penthouse residences are being offered as “core-and-shell” units. Owners will then work with their own architect and contractor to complete their home.
Residents at The Arête enjoy secure underground parking with dedicated storage areas, and additional parking spaces can be purchased with each residence. Owners also enjoy membership to One Boulder Fitness health club.
Most mixed-use buildings are designed first and foremost with their ground-level commercial tenants in mind. In designing The Arête, Stephen Tebo has deliberately departed from this formula by planning the project around its exclusive residences. “We have chosen to create The Arête with the residences setting the standard, and have spared no detail in doing so,” he explains.
Residents are delivered to their homes via a private elevator and enter through elegant corridors crowned with a series of domes featuring the same artisan plasterwork used to finish the St. Julien Hotel, which is adjacent to The Arête. The front entrances to each residence are generously spaced apart and feature a hand-crafted sculptural walnut surround that sets the tone for the unique features beyond.
Local interior design firm The Ranch House has created three choices of finishes – Urban, Oasis and Zen – chosen to complement a wide range of owners’ design preferences.
Kitchens include a stainless appliance package with an industrial-quality Wolf dual-fuel range, Sub-Zero refrigerator and Bosch dishwasher. Hand-crafted custom cabinets feature elegant hardware, soft-close drawers and Euro-style hinges.
The en-suite master bedroom features a five-piece bath set with Hansgrohe fixtures, fully tiled shower with frameless European enclosure, marble or granite countertops and tub deck, custom cabinetry and walk-in closets. Secondary baths receive similar top-shelf appointments.
Zoned radiant floor heating will keep each home comfortable, from the moment you put your foot down in the morning until you retire at night. A gas fireplace will add an additional cheery note of warmth to most residences. Sustainable woods and high-efficiency mechanical systems are used throughout.
Find out more about The Arête
Visit The Arête sales center at 949 Walnut St. to see the model kitchen and available choice of finishes, or call 303.444.8326. Showroom hours are Monday through Saturday, 10:30 a.m. to 7:30 p.m., Sunday 11 a.m. to 4 p.m.
Four show residences are scheduled for completion in mid-September. Details and floor plans can also be viewed at www.TheArete.com.
Scridb filterSilver Creek in Lafayette
Markel is building an exciting new neighborhood, SilverCreek, in a prime location in Lafayette, near Baseline Road and Highway 287. The residential community features green-built and Energy Star® homes and cottages (smaller-size homes) at affordable prices. Residents can leave their cars at home and walk or bike to shops, restaurants, Old Town Lafayette, parks and trails, the public library and Bob Burger Recreation Center. Life doesn’t get more convenient than this.
The first building phase comprises 60 single-family homes. There are six floor plans to choose from – three ranch and three two-story styles. Also, Markel is releasing the first two in a series of cottages.
Cottage Homes
• Wildrose Cottage is a ranch-style home with 1,481 finished square feet, and 2,854 total square feet. It has three bedrooms, two baths, and a two-car attached garage. Prices start at $389,900.
• Lavendar Cottage is a two-story style, with 1,475 finished square feet, and 2,074 total square feet. It has three bedrooms, two and a half baths, and a two-car attached garage. Prices start at $369,900.
“Many people are looking to downsize to smaller homes with little maintenance, plenty of green features and most of all, easy, open and functional floor plans,” says sales manager Asa Welch. “The Wildrose cottage – our newest, completed and furnished model as well as our new sales center – is a cozy, single-level home with an open floor plan and details like a built-in bench seat and window seat, fireplace, an asymmetrical vaulted ceiling, skylights, a large front porch, lots of windows, and a charming exterior with stone columns and distinctive post and beam accents.”
Most of the cottage homes will be single-level, with open and contemporary floor plans that include two or three bedrooms, mostly within the 1,200- to 1,600-square-foot range. Architectural styles range from urban contemporary to newwest post and beam, and classic with a more traditional feel.
Choose from a Variety of Styles and Lots
Whether you are looking for a classic two-story home with a large back yard, or a small newwest cottage with little yard maintenance and single-level living, you’ll find the home to suit your needs and lifestyle in Silver Creek. In addition to home styles, home buyers can pick from a range of lot sizes.
Some features, on the other hand, are typical throughout the neighborhood. Every Silver Creek home has a garage, basement and a back yard. And every home features green construction and Energy Star efficiencies. Front porches, window seats and cozy fireplaces add a neighborly feel. Early buyers may choose their home and their lot, and select their finishes. They can plan on a five- to seven-month build period.
Prices range from $289,000 to $449,000. Ten of the homes are market-rate affordable and are administered through the Lafayette Community Housing Program. Inquire at the sales office for more details.
Two furnished model homes are open for viewing. The first, a Redbud design priced at $399,900, is a light-filled two-story home, almost 2,000 square feet, with three bedrooms and two and a half baths. The floor plan is open, with a study on the main level, an oversized garage with a shop, and much more. The second model is the Wildrose Cottage, described above.
“We build green,” Welch says, “with a variety of ranch and two-story Energy Star® rated homes and cottages to choose from, with options such as solar panels and solar hot water heaters, for environmental conservation and lower energy consumption. And we offer back yards – a hard-to-find luxury in new communities. Ours come with large patios, gas stubs, and an optional trellis for easy outdoor living. Homeowners can so easily enjoy Colorado’s climate and lifestyle here.”
Financial Incentives
Valuable builder incentives, along with the first-time home buyer tax credit, low interest rates, and the opportunity to purchase in an up-and-coming neighborhood in a great location, are all reasons to take a look at Silver Creek.
“Our homes and cottages present an affordable alternative to those who are drawn to, or want to stay near, all that the Boulder-area has to offer – easy access to Denver, the mountains, trails and open space, gorgeous back-range views, shopping, great restaurants, and recreation,” says Welch.
Markel Homes
Silver Creek comes from Markel Homes Construction Company, the designer of North End in Louisville and Dakota Ridge Village and Northfield Commons in Boulder, among many distinguished neighborhoods. Markel Homes has been a leader in planning and creating Colorado neighborhoods for more than 30 years. Its trademark is distinctive design, architectural variety and compelling interiors that mirror the natural beauty of Colorado. It values parks, trail access and open space in the neighborhoods it develops.
Visit Silver Creek in Lafayette
Silver Creek is located just north of Baseline Road, east of Highway 287, and west of 111th Avenue. From 287 and Baseline, go north to Diamond Circle, east to Cabrini Drive, north at the stop sign. Follow Cabrini to the Sales Center on the left-hand side at Cordova Court.
The Sales Center is located at 590 Cordova Court. It is open Saturday through Wednesday, 11 a.m. to 6 p.m. Call 303.449.0191 or e-mail the manager at Asa@MarkelHomes.com. Visit the Markel Web site, www.MarkelHomes.com, and click on “neighborhoods” for more information about Silver Creek.
Boulder Multi Family Market is Still Healthy
By Miles King and Paul Kreske
Many investors feel the downturn in the economy started in the 4th quarter of 2008.
However, when you look at the overall markets and the Boulder multi-family market in particular, the numbers reveal that the market downturn started towards the end of 2006 and into 2007. The Boulder multi-family market is a small niche market but remains relatively stable. Investors typically buy and hold their buildings, banking on increased rents and Boulder’s historical appreciation. The demand for quality units, and/or units located close to the University of Colorado has been, and remains steady and solid. Overall vacancy in the market is increasing to approximately 6.5 to 7%. Most of that vacancy occurs in areas beyond the University region.
The stability of the market is driven by several factors:
1) The most obvious is the University of Colorado which brings in an average of 23,000 students annually. These students either buy or rent. Their parents invest in the “college condo” or “college duplex” and then sell that property when the student graduates.
2) Government job and government job growth – Boulder is host to several government research agencies and brings in numerous temporary and permanent employees who need temporary housing.
3) General job growth – Historically, Boulder has seen increased job growth with a main focus on research, telecommunication, biotechnology and other high-tech industries. These employees enjoy living close to the employment center and tend to rent before they venture out to purchase property.
4) Boulder is known as a bit of never-never land surrounded by reality. Let’s face it – in spite of its reputation for eccentricity, Boulder is still a desirable place to live. However, the cost of living is high, so many who choose to live in Boulder are destined to rent if they wish to remain there. Boulder is surrounded by open space that cannot be developed. There is very little land left to re-develop or build new product, the entitlement process is long and expensive. All this combines to keep the demand and prices high.
From January 1, 2009, through June 30, 2009, Boulder had a total of 13 multi-family sales. There were a total of 26 closed sales in 2008, so this is on track for the 2009 year. However, current inventory stands at 37 properties, which is similar to the number of listings in 2008, but double the number of listings for sale in 2007. This gives us a 17-month supply. GRM and CAP rate averages for the first 6 month’s sales activity indicates a GRM of 14.1 and an estimated CAP rate of 5.1%. This is slightly higher than previous years in which GRM was averaging 16.1 and CAP rates were between 3.5% and 4%. The 2009 sales transactions ranged from 2 units to 161 units. The 161-unit sale is an unusual transaction for the market. The typical sale in Boulder is usually between 3-15 units. When a big project sells in town it turns heads. The property was not listed. It was reported as 149,000 SF and sold for $147 per square foot, a cost per unit of $136,025, and a cost per bedroom of $72,214. It may well be the largest commercial transaction in the area for the entire year. A more typical multi-family sale in Boulder is for projects between 3 and 12 units, with a price per square foot of $273, a price per unit of $258, 972 and a price per bedroom of $101,375.
CAP rates in the market are rising, although there seems to be an even greater disparity between the desired yield of investors and a seller’s price expectations. This trend is even more characteristic in today’s market due to the severe lending constraints. Cash or seller financing seem to be the key ingredients to successful transactions now. The traditional relationship between a buyer and seller being on opposite sides of a transaction has given way to the buyer and seller forming an alliance to work together to get the lender to fund the transaction with a minimal amount of conditions, delays and last minute changes.
It is no secret that the market has slowed as compared to previous years. However, it is one segment of commercial real estate where there is still some financing available. When you match the available financing with the amount of available inventory, investors are still able to purchase projects and obtain a respectable return.
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