2019Q3: 1960s’ Center Hallway Buildings: A Case Study

Central Denver Market Report 2019 Q3
Central Denver Apartment Market Report: Cover page of our 2019 Q3 newsletter

 Searching for a Central Denver trendline within the past two years, we decided to research three 1960’s center hallway buildings sold by Calibrate Real Estate. Why? 

At an average of $199k/door, this construction style represents the “middle” of the market. Specifically, the 12-unit version of 1960s built center hallway buildings are consistently desired by Central Denver buyers. 

Over our careers, we’ve sold dozens of center hallway buildings. One year, we even sold two versions of this building side-by-side a few months apart; one selling for $500,000 more than the other. In this case study, the value range is $275,000.

160 South Emerson Street sold in June 2019 for $2,200,000 ($183k/door)
234 Logan Street sold in May 2019 for $2,325,000 ($194k/door) 
1325 Madison Street sold in January 2018 for $2,475,000 ($206k/door) 

 While they aren’t as architecturally appealing as some other vintages, they are desirable because of their functionality. This is a classic case of function over fashion. 

The characteristics of each building is similar, though finishes, location, and operations are different: 

  • All three were built within one year (either 1960 or 1961) 
  • They have the same unit mix: 11-1Bd/1Ba and 1 Studio 
  • Identical unit floorplans with a spacious living room and closet space 
  • Garden level laundry and boiler room, and parking in the rear 

Looking at the sale dates, you might conclude that the market is trending downward. However, rental income is still the primary driver of value. Higher revenue equates to the highest sales prices. Gross annual rent tells the story of which building maximizes value: Emerson collected $131,705/ year; Logan collected $157,620/year; Madison collected $162,420/year. 

by Kyle Malnati 

calibrate

Calibrate Real Estate
900 East Louisiana Avenue #203, Denver, CO 80210
http://www.DenverApartmentBuildingsForSale.com
http://www.CalibrateRE.com

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