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.
Northfield Commons in Boulder
Colorado’s natural beauty is the backdrop
By Judy Finman
Colorado’s natural beauty – blue sky, sunshine, mountains, wide vistas – is the backdrop for a popular new neighborhood in Boulder called Northfield Commons. Its distinctive features are sublime views, trail connections, a neighborhood park, and a pleasing variety of home styles, from traditional and Colorado craftsman to contemporary loft-style. This appealing mix includes single-family houses, duplexes, row houses, town homes and condominiums.
Every home meets Built Green® and E-Star® standards for eco-friendly and energy-efficient living, which means lower energy costs, healthier indoor air, less water usage and improved overall comfort, while reducing pollution and conserving natural resources.
Northfield Commons occupies a 22-acre site between Kalmia Avenue and Palo Parkway in northeast Boulder. The semi-rural charm of quiet, tree-lined streets is balanced by the convenience of nearby restaurants, bank, shopping and public transportation.
A New Northfield Commons Homeowner
Dee Perry moved to Northfield Commons early this summer. “I love Boulder,” she says. “I was born and grew up here.” In deciding to move she first looked at the fine old Boulder neighborhoods and realized the houses there needed a lot of work. She wanted something newer.
“Northfield Commons was an effective way for me to get into a new – and green – home,” she says. “Northfield Commons is close to anywhere I want to go in Boulder. The bike path comes through here, and I can get on Foothills Parkway. It’s a great place to be. I like the diversity here – people my age who are downsizing, and also families with children, and single people.”
Perry chose a single-family home with a main-floor master suite. “If I’m here 20 years from now, everything I need is on the first floor.” Besides the bedroom suite are a great room, dining room and kitchen in an open floor plan, and a powder room. She is enjoying the whole house. The third floor in her model is a skyloft, with a deck; just inside is a kitchenette, perfect for entertaining. On the second floor are an office, two guest rooms, and a “room with a fireplace and windows, with comfy chairs, my reading area.” The basement, which is partially finished, has potential as a theater. “My house is very contemporary in style; it’s the same floor plan as the one next door that’s a craftsman.”
Available Homes
“Northfield has been selling very well,” says sales manager Kate Lyons. “We had 15 closings in August alone. We see homeowners barbecuing, walking their dogs, riding on the bike paths – and smiles everywhere. Six model homes are open: from condo to row house to duplex to single-family. Buyers have a lot of choices and a variety of architectural styles, too.”
Of the 190 homes planned for Northfield, about half are under contract or sold. More than half of the single-family homes are sold. “Over the next six months we’ll introduce some new floor plans and home designs from each builder,” says Lyons.
“Two single-family homes with main-floor master suites, designed by Markel, are ready,” she says. “And we’re offering two duplexes – one by Coast to Coast with a main-floor master suite – and the other, by Markel, with a third-floor skyloft with indoor/outdoor potential, such as a hot tub. Three loft row homes are also available – in a trendy urban design, with decks and patios and four finished stories.” She encourages homebuyers to check with the sales office for monthly incentives and specials.
Trails, Parks and Recreation
Four Mile Creek Trail and Wonderland Creek Trail are accessible from the Northfield Commons bike path. Both trails lead to open space. The focal point of the community is a beautifully landscaped park, with picnic tables and half basketball court, within walking distance of every resident. Pleasant View Sports Complex borders the eastern edge of Northfield Commons, and North Boulder Recreation Center and Spruce pool are nearby.
Contact Information
Northfield Commons is marketed by Markel Homes and Accent Properties. The sales office is located in the southwest corner of the neighborhood at Kalmia Avenue and Silverton Street. It is open daily, 11 a.m. to 6 p.m. Call Kate Lyons at 303.442.0309, and visit www.NorthfieldCommonsBoulder.com.
A variety of condominiums at Northfield Commons meet the guidelines for the City of Boulder Homeownership Program. Visit the Northfield Commons Web site for more information.
The Builders of Northfield Commons
Coast To Coast Residential Development, Inc., has more than 20 years of residential and commercial building experience. Its homes incorporate indoor and outdoor living environments in unique ways and feature architectural details often found in custom homes.
Markel Homes Construction Company 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. Markel values parks, trail access and open space in the neighborhoods it develops.
Hendricks Fine Homes is a small Boulder-based builder that focuses on creating quality homes designed for today’s busy lifestyles. Owner Cary Hendricks has worked with many new and renovating homeowners, and brings clarity and experience to any project and the ensuing relationship.
Accent Properties has been a leading participant in the Boulder real estate market since 1976. It specializes in a full range of real estate services, including all aspects of residential realty and custom home building and construction design.
Verlo® Mattress Factory: Custom-made just for you
By Judy Finman
Verlo Mattress Factory in Boulder has a provocative slogan: “Not Just Made. Made Just for You.” In fact, every mattress Verlo sells has been handcrafted to your preferences by master craftspeople on site in Verlo’s factory store. Each bed is in a class by itself – with no resemblance to the ready-made mattresses advertised by national chain stores.
Custom-made Beds
“We make a bed just for you,” says Dick Sumerfield, owner of Verlo Mattress Factory in Boulder. “All our beds are custom-made here in our factory. You try out the beds in our showroom – we have 22 different types, each available in a range of firmness options. Once you choose the one you want, we tailor it to your needs for comfort and support.” Sumerfield and his highly trained staff, who guide you in the showroom, will also help to build your bed.
Since 1958, the Verlo company has combined fine materials with local craftsmanship and a commitment to customer satisfaction. With 70 stores nationwide, Verlo has the cooperative buying power to purchase the best materials and pass the savings on to the consumer. Each Verlo store is locally owned and operated, creating a direct-to-the-customer experience that saves money and ensures high quality.
Sumerfield opened the Boulder Verlo Mattress Factory in 1989. Five craftspeople are kept busy in the factory area, turning out hundreds of custom mattresses and futons each year. They also supply many hotels.
The Verlo Difference
There are many different types of mattresses on the market – natural, air, inner spring, latex, memory foam – to name the most advertised. What are the differences?
“At Verlo Mattress, we handcraft the various mattress types, so we know how they differ,” Sumerfield says. “Our craftspeople are experts on the raw materials used in crafting beds. They help a shopper find the healthiest, safest, most comfortable sleeping environment for them. Depending on your mattress selection, several layers of various elements, such as cotton, Talalay Latex and wool, are added to create the perfect comfort level for your needs.
“We want to build a long-lasting, durable bed. At every point in creating our product we use the best quality we can, and it’s better than any competitor’s. Other manufacturers will cut down on materials. For every product we build, we do more – the density of the foam, the fabrication of our insulator pad, the long-fiber cotton we use, which holds together better and won’t bunch up. In our construction methods we can change the firmness or softness with foam and firming pads. Our 805-coil innerspring has more heavy-duty border rods, and we put more turns in our coils, so there is more steel and it lasts longer. With our futons, we build each one under 500 pounds of pressure, and then we put an 8-ounce twill cover on it, tuft it more times than our competitors do, then tie on the inside of the mattress – not on the outside – so there are no bumps.”
He adds: “We are the experts in the mattress industry. We know what makes a mattress perform because we make them!”
A good night’s sleep is a kind of health insurance policy. Since about one-third of our lives is devoted to sleeping, why not spend that time as comfortably as possible?
Test Rest a Verlo Mattress
Call a Boulder Verlo Craftsperson at 303.447.1154, or visit the Verlo Mattress Factory at 3080 Valmont St. in Boulder, to find your best mattress. Store hours are Monday through Friday, 9 a.m. to 8 p.m.; Saturday, 9 a.m. to 6 p.m.; and Sunday, 11 a.m. to 4 p.m. See Verlo’s exceptional collection of beds, futons and bedroom accessories at www.Verlo.com.
Some key elements of Verlo mattresses:
IntraTouch™ Sleep Technology combines contoured upholstery layers, innerspring zoning and box spring technologies. These elements are designed to displace body weight throughout the sleep set.
Cotton: to breathe. Sleep sets that contain cotton help you stay cool during summer and warm in winter.
Wool: One of the oldest materials known, wool is strong, elastic, water-resistant and heat insulating. Wool acts as the climate-control element of the sleep set by keeping your body dry and at the right temperature.
Latex: Inherently anti-microbial and dust-mite resistant, a latex mattress is perfect for allergy sufferers. Latex is breathable, so your latex mattress is warmer in the winter and cooler in the summer. A latex mattress will not allow moisture to build up next to the body.
Upholstery: Only the finest, most luxurious fabric is selected for Verlo’s sleep-set covers. The soft, smooth texture of the tickings complements the bed’s comfort and quality. With great precision, each craftsperson sews the sleep set together, ensuring it will withstand the test of time.
Innerspring: Verlo’s exclusive posturized innerspring unit features alternating coils that work together to provide the right level of firmness where you need it most.
Visco-elastic memory foam: Visco-elastic beds are designed with unique temperature-sensitive foam that allows the mattress to contour to the body. Visco-elastic memory foam is firm at room temperature but is receptive to the warmth of body temperature. Improved circulation is an additional benefit of visco-elastic memory foam. By reducing pressure on hips and shoulders, tossing and turning is reduced. The result is sweet slumber!
Taylor Moving of Boulder: Making customers happy
By Judy Finman
“We love you guys!” Every business owner longs to hear these words from customers. At Taylor Moving of Boulder, this is one of many accolades from customers surveyed after they moved.
“I was extremely happy with the movers! They were wonderful!” wrote another client, emphatically.
For nearly 15 years, savvy Colorado individuals, businesses and non-profits have entrusted their possessions to Taylor Moving of Boulder, a local company that has earned its reputation for trustworthiness, superior service, and pleasing its customers.
Realtor Jeremy DeBell, with RE/MAX Horizons Group in Broomfield, has called on Taylor Moving more than once. “They moved me personally, and I was so pleased with them that I have recommended them to my clients. I was impressed with their customer service, reliability, and their hard-working, friendly crew,” he says. “My customers are grateful that I recommended the company. They say the Taylors and their crew are wonderful to work with. I’ve never had a complaint.”
DeBell points out that moving “is a very stressful time for people. But with Taylor the move will go smoothly. They’ve really got a desire to make the customer happy – which has not been my experience with other moving companies. Glen Taylor is hands-on. He checked in on my move to say, ‘How’s everything going?’ ‘Is there anything we can do better?’ He makes a point of making the customer happy.”
“They listen and are amenable to what we want,” says Peter Lundskow, curator of collections for the Boulder History Museum. He engaged Taylor to move the museum’s only piano, a Laffargue player piano, built in New York in 1921. “We’ve used Taylor before,” Lundskow says. “We like to use a local company. Both the owners and the movers take a personalized approach to every move.”
Taylor Moving is owned by the husband-and-wife team of Glen and Leah Taylor and employs around 23 movers. The company transports as many as 1,200 households and businesses each year. It specializes in moves within Boulder County, but regularly coveys people all over Colorado and occasionally outside the state.
Leah Taylor says, “A lot of local moving companies have been affected by the economy, going out of business or being bought up by national chains. We’ve managed to stay busy and in business and were even voted Best Mover in Boulder by Camera readers in 2006 and 2007. We are not nationally funded, so we depend on happy customers for continued business.” Taylor Moving was also voted 2008 Best of Boulder by readers of Boulder Weekly.
“Our success comes down to the same crews year after year – we have a low turnover rate,” Glen Taylor says. The guys work together as a team and accommodate the customers. Three or four of the crew have been with us since day one – nine of them five or six years.”
Ellen Berman is a self-employed Home Director, who manages moves for clients. She has found Taylor to be accommodating and flexible. “We did several small moves, and the helpers were very courteous and concerned about the personal belongings. They took extreme care in moving a baby grand piano from one household to another. One time we did multiple pickups and dropoffs; they weren’t expecting this when they arrived, but they accommodated us, and we were pleased. They didn’t waste time; they were efficient and showed a lot of care.”
Because the family is very hands-on, you almost always reach a Taylor when you call the office, and always meet one of them on your in-home estimate. They have a lot of repeat customers and referrals, because customers know the owners will always be involved in the process and the movers are always first-rate.
Taylor Moving has been in the same location in Boulder, with the same owners, from the beginning. Some companies say they are locally owned or have been around for decades, but are actually owned from out of state or have changed hands several times.
“With Taylor Moving we are what we say – a true family-run, locally owned and operated moving company that cares about you and your belongings,” Glen affirms.
Building a successful business allows the Taylors to give back to the community. They’ve donated moves for local institutions such as The Boulder Shelter for the Homeless, Boulder Valley Humane Society and Habitat for Humanity. “If we’ve done well, then we should give back,” says Sandy Taylor, Glen’s mother, who works full time in the office. “If it’s a good cause, we like to help out.”
Taylor Moving is located at 4949 N. Broadway, #110, in Boulder. For more information or a free estimate on your next move, call Taylor Moving at 303.443.5885 or e-mail the Taylors at GTMOVING1@aol.com. Visit the company
Web site at www.TaylorMove.com.
Take it Outside: Let Heat Wave Stove & Spa help you
By L.L. Charles
The outdoor entertaining season has begun! Warm days and longer evenings mean that we are spending more of our time with family and friends out on the deck, patio or porch. But this year you’ve promised yourself something better than the same old patio furniture and creaky umbrella. It’s finally time to create that outdoor room you’ve been dreaming about.
“We’re seeing a huge interest in outdoor rooms,” says Ty Miller, co-owner of Heat Wave Stove & Spa in Boulder, referring to the trend of creating outdoor environments with many of the comforts and amenities that in the past were limited to the indoors. Today’s outdoor living spaces are home to elaborate cooking islands with built-in barbecues, hot tubs equipped with inboard stereo sound, hearths and heat lamps to keep the party going when the evenings turn cool.
There’s no better way to get started than to visit the local experts at Heat Wave Stove & Spa, family owned and operated for more than 20 years. “We love to talk about our products,” Miller says. “Come in and visit; you’ll leave here more knowledgeable than when you came in.” Indeed, every visit to the showroom turns up a new experience. A wall-to-wall collection of grills, smokers, stoves, pergolas, fireplaces and hot tubs await your discovery. Check out the live cooking demonstrations on the weekend – there’s even a wet room where you can test soak a working hot tub (bring your own swim suit).
The centerpiece of any outdoor cooking area is its grill, and you’ll find an exciting collection of top-name gas and charcoal models here. A quality grill can last a lifetime, Miller says. “We just want to sell you your last grill.”
One of the most popular is the Traeger pellet grill. You fill a compartment with “flavored” pellets (hickory, mesquite or oak, for example) and the clean-burning fuel is fed evenly into the fire, eliminating the need to monitor the grill as you go. “A lot of people have never heard of pellet grills,” Miller explains, “but they are one of our strongest sellers. You can use them just to grill up a couple of steaks, of course, but these grills offer one of the easiest ways to do a longer, slower item, like a 16-hour brisket.” Heat Wave is proud to carry the Traeger line of pellet grills, used locally by professional chefs. Pellet grills start as low as $699.
Another popular innovation is the gas-fired infrared grill, which uses radiant heat to quickly produce a high, uniform temperature, taking the guesswork out of perfect grilling. Start with a high heat to sear the juices in, then go to a lower setting to finish your masterpiece. Infrared grills cook your food in half the time, too.
A third option is a smoker, which uses “low and slow” indirect heat to do the cooking. Heat Wave carries several versions, including the “kamado” cooker, an egg-shaped unit with thick ceramic walls that trap heat, making them inexpensive to use. Kamodo cookers start at around $1,000.
Okay, dinner’s over and it’s time to kick back in the hot tub! Heat Wave carries two of the best: Dimension One Spas and Beachcomber Hot Tub. Models range from a compact two-person tub (perfect for smaller spaces or decks) or the executive models that fit the whole family. An array of lights, massage jets and surround sound options let you customize your spa – you can even add exercise equipment from Aquatic Fitness Systems to turn your soak time into a workout.
So, pull yourself out of that funky folding patio chair and get into Heat Wave Stove & Spa. Your outdoor lifestyle is about to change for the better!
Your HQ for BBQ – and more!
The experts at Heat Wave can work with you or your contractor to plan and create an outdoor room that will be the talk of your neighborhood – and they service what they sell.
To learn more about Heat Wave Stove & Spa’s products, visit www.heatwavestoveandspa.com, call 303.442.7980, or visit the showroom at 2840 28th St. in Boulder. Hours are Monday through Friday from 10 a.m. to 6 p.m., Saturday 10 a.m. to 4 p.m. (closed Sunday).
