James Real Estate RE Fin Terms Dnvr 2000 3rd Qtr Page 10
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Apartments
Because of the improving Denver area apartment market, the availability of capital from quasi-
government entities, including Freddie Mac, Fannie Mae and HUDs and what is to be perceived as a less
risky investment, financing for apartments is generally more available and at lower cost than for other
property types. Typical interest rates quoted for the best new or newer apartment projects are as low as
150 basis points (1.50%) over similar term treasury securities. Financing is also available for class B or
C properties, and interest rates are typically 175 to 300 basis points over the corresponding Treasury
index.
