Markets
Metro context
Vacancy across Denver multifamily ran elevated through 2025 and into 2026 after a historic delivery cycle. Asking rents in luxury product were not immune.
The spread
Downtown and the eastern corridors loosened. Highlands Ranch–Lone Tree and South Douglas did not, at least not by the same margin. Submarket is the underwriting.
Why now
Starts have slowed under cost, policy, and rate. Replacement cost in Cherry Creek and South Douglas is not coming down. Basis that clears today is unlikely to be rebuildable.
City of Denver
Cherry Creek remains one of the few Denver submarkets where replacement cost, land scarcity, and household income still support true Class A basis. Recent high-rise trades have cleared in the 200-unit range — inside our box. We underwrite to in-place income, not to a lease-up story borrowed from a looser corridor.
Cherry Hills Village · Greenwood Village
Cherry Hills Village itself is largely estate residential. The acquisition set is the adjoining Greenwood Village and Belleview corridor — walkable to the Village, served by the same schools and retail, and scarce in 200–350 unit Class A product. We will not stretch into inferior locations and call them Cherry Hills.
Southeast employment core
DTC and the southeast corridor carried more vacancy through the 2024–2026 supply wave than Cherry Creek or South Douglas. We still buy here — but only assets with real employment adjacency, structured parking, and an amenity stack that does not require a full recapitalization. Basis has to reflect the lease-up risk. We will not pay core-in-town pricing for a DTC lease-up.
Highlands Ranch · Lone Tree · Castle Pines · Parker
South Douglas and the Highlands Ranch–Lone Tree pair have been the most resilient occupancy story in the Denver multifamily set — and they have also been where large, financeable Class A trades have cleared. We look at Highlands Ranch, Lone Tree, Castle Pines, and Parker. We are cautious on Castle Rock and other far-south deliveries that rode the last construction cycle.
