Last week I was in New Hampshire and for the first time I realized how much green space there is. Or, rather, how little green space Denver has (other than parks, etc). Given Denver is a much larger city than any of the cities in New Hampshire it certainly makes sense that there is just less space here versus there. Upon returning to Denver, I really took note of the construction and the roadwork taking place in any extra space that we have and all of the change occuring.
I am lucky enough to live downtown but when I look out my doors to the city, I see five cranes for new apartment buildings. Not to mention the two buildings a block north of my condo and one building a block south of my condo. The opportunities to buy a home downtown are very scare currently, a majority of the construction occurring downtown is apartment complexes for rent.
You may be asking, if demand is so high for homes, why are rentals being built? The way the the law is structured in Denver makes it very difficult for developers to build condos in the city. The Condo Construction Defect Law makes it very easy to sue a builder if there are any issues. If there are any problems upon moving into the complex (such as HVAC, heating or any other major issues), the law requires a majority of the HOA to bring a lawsuit against the builder. The current legislation means builder’s have high insurance costs and a high liability when building a condo. (This is an incredibly shortened overview of a complex law given as a brief description of why builders are building more apartment complexes to rent vs. condos. Read more here.)
Denver is in an unique situation where both the rental and real estate markets are hot. Many builders are incredibly hesitant to take on the liability of building a condo building and have decided to take advantage of the rental market and build apartment complexes but two new projects will present a number of condos for homebuyers to purchase downtown.
East West Partners broke ground in 2016 and are in the last phase of completing the Coloradan. Located at 1750 Wewatta, this 334-unit will offer 33 condos priced by the city’s affordability requirements in the mid to high 200’s. The remaining units will be priced from $200,000 to $1.3 million. This is a spectacular opportunity to live in the heart of the Union Station neighborhood.
Just last week, Denver received word of a Miami developer plans to development two 40-story condo complexes on 19th and Arapahoe, creating 800 next condos. The project, named Paradise Living, has not submitted formal plans to the city but the rendering show individual balconies and a roof top patio with a pool. Estimated competition for these condos will be fall 2019 and prices will start $320,000.
Although it may feel like the Denver real estate market is in a gridlock right now, there is a bit of relief coming for homebuyers. These two projects will present more opportunities for condos in the next one to two years and is a perfect opportunity for buyers who want to take advantage of city living.
Liz works full-time as a Real Estate Agent with LUX. Denver.
