April 2021 had the highest volume we’ve seen so far this year in the 4-200 unit space, with 33 properties trading for total value of over $362M. There were a couple large sales that had hefty contributions to total volume, with Aspire selling for $91M or $511k/door, and Cortland Cap Hill at $84M or $427k/door. As reference, April 2020 (the first real month that Covid lockdowns became prevalent) saw only 17 properties worth just over $43M move hands, while April 2019 was 28 properties for $102M in transactions. Cap rates continue to hover at the compressed numbers we’ve seen over the past 12 months with no evidence of that changing in the immediate future.
Eviction Ban Ruling
In a move that brings a sigh of relief to most landlords, a federal judge from Washington D.C. has ruled that the CDC overstepped its intended authority in issuing the national eviction ban. The judge, Honorable Dabney L. Friedrich, states in his 20-page ruling that the CDC does not have the legal ability to impose such a moratorium and the Health Service Act does not grant it that power. The plaintiffs are a coalition of landlords, realtors, and attorneys from a few states in the US; they filed the suit back in November of 2020, and although a number of judges have ruled on the matter (some for, some against) it appears that this federal ruling is now the accepted outcome on a federal level. Individual states can still decide where they want to uphold or disregard national guidelines, with many states having long since done away with the ban, and others still enforcing it. Though there are a plethora of arguments on both sides of the case, the ruling threw out much of the “emotion” on this topic and the judge wanted to simply answer the question, “does the CDC have the power to impose an eviction moratorium?” It appears that, for the moment at least, they do not.
New Property Assessments
Almost all Denver property owners have received their updated property tax assessments for payable 2021 on May 1st. The assessed values went up an average of 30% for all properties in Denver according to one report, and while the assessment itself doesn’t have any effect on the daily operation of the properties, they do typically come with an increased property tax burden. HRE Group is happy to help determine whether it’s worth protesting your assessment or not, and would refer local tax advisors we’ve utilized in the past who can assist in the appeals process.