How Realberry Filters Opportunities

In a recent appearance on the Denver Real Estate Investing Podcast, Realberry Senior Director of Private Capital Taylor Hazlett joined host Chris Lopez to discuss how the firm approaches multifamily underwriting in today’s market.

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Hazlett explains how roughly 100 potential opportunities can narrow to just a handful of acquisitions, with each deal evaluated across multiple scenarios before it advances. That discipline also means being willing to walk away when pricing no longer supports the investment thesis.

Why Replacement Cost Matters

A major theme of the conversation is the widening gap between the cost to acquire existing multifamily properties and the cost to build comparable product from the ground up.

Hazlett discusses how higher construction costs, water tap fees and municipal impact fees are making some new development more difficult to pencil, while creating potential opportunities in existing assets trading below replacement cost.

A Real-World Example in Castle Rock

Realberry’s recent acquisition of a 60-unit townhome community in Castle Rock provides a practical example of that strategy.

Hazlett explains how the property’s acquisition basis, relative to the cost of new construction, helped support the investment thesis and why opportunities like this can stand out in the current environment.

The Build-to-Rent Opportunity

The conversation also explores why build-to-rent has developed more slowly in Colorado than in some Sun Belt markets.

Hazlett discusses the rent levels required to make new BTR development feasible, the impact of development costs and Realberry’s experience building nearly 400 BTR units through its joint venture with American Housing Ventures.

Signs the Market May Be Shifting

Looking ahead, Hazlett shares several indicators Realberry is watching for signs of improving market conditions, including declining rent concessions, more competitive insurance pricing and relatively stable construction costs.

While those trends have not yet translated into meaningful rent growth, they offer useful signals for understanding how the multifamily market may be evolving.