Why Invest in Denver

First and foremost Mountain Capital Group believes it is exigent to know the market.  This is why we have concentrated on the Western United States, with most emphasis on California and Colorado. We believe at the current time that Metro Denver, Colorado and some surrounding areas are ripe for a surge in growth.

Why Denver

  1. A friendly business environment
  2. A highly educated work force
  3. A Dynamic City that is continuing to rebuild and improve infrastructure, transportation and amenities.

In terms of apartment markets we believe that Denver, Colorado represents a viable market.  Some of the reasons are outlined below:

•    Metro Denver has a young, educated urban population due to all the university campuses located there.  Typically this age group, unless married and wanting to have a family, prefers living in the urban core and does not want to purchase a home in the suburbs;

•   Fewer people are buying a home today.  Potential homebuyers are fearful of their employment status, whether or not their next job will be located nearby or if it will entail moving or commuting longer distances.   Denver Metro area is one of those cities where people draw the line at any commute longer than 20 minutes, unlike Los Angeles or San Francisco where commutes of one hour or more are tolerated;

•   The vacancy rate for metro Denver area apartments dropped to 3.8 percent in 2012 for the Central Denver area – its lowest level in over 10 years-according to reports from the Apartment Association of Metro Denver and the Colorado Division of Housing;

•   Market rents in the metro Denver Central Area apartments increased 6% percent  from the previous year.

Scarcity and Demand.  Metro Denver had 13 communities with 2,323 units started during the third quarter of 2012. An additional 30 apartment projects with 6,523 units were under construction in metro Denver on September 30, 2012, for a total of 8,846 units. Research indicates that over 10,000 additional units are in the advanced stages of planning and/or approvals and may begin construction by the end of 2013.

.  Historically, the Denver market needs to add about 5,000 to 6,000 units each year just to keep up with demand. According to the Denver Metro Apartment and Vacancy Survey, 4,791 units were absorbed during the first three quarters of 2012, well above the net absorption of 1,556 reported for all of 2011.

Based on our analysis, we believe that central Denver, Boulder and selected suburban markets offer unique apartment investment opportunities combined with favorable low rate financing creating an excellent opportunity to purchase, rehabilitate and liquidate projects thereby generating strong returns for our investors in the next 5 to 10 years.