2019Q3: $200k Per Door is not Automatic

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

 Central Denver appears to be headed for another record year of apartment sales prices. To many observers it might seem that nearly everything is selling for $200,000+ per door; but are they really? 

We’ve sifted through all of the Central Denver sales data for 2018 and 2019, and found that the majority of buildings actually sold below $200,000 per door. The data also revealed, not surprisingly, that the age and style of each building is a major determinant of the sales price. In fact, when categorizing the sales by building type, we found a predicable range of sales prices for each identified style. 

We were able to place over half of all sales neatly into five architectural categories: studio buildings, 1960’s center hallway buildings, 1960’s outside walk-up buildings, 1970’s mid-rise buildings, and classic vintage (1900s-1930s) buildings. 

 As expected, buildings with a predominant mix of studio units fell into the lowest price range, averaging $129,000 per unit. At the high end of the spectrum, the 1970s mid-rise buildings, with their larger unit size, balconies and amenities, had the highest average price of $282,000 per unit. In the middle were 1960s outside walkups averaging $179,000 per unit, 1960s hallway buildings averaging $199,000 per unit, and vintage buildings averaging $213,000 per unit. 

Rental income and cashflow are still the primary factors of value. Strong rents lead to the highest sales prices, and often we find the highest rents in the buildings with the largest floorplans. Interested in knowing how your building compares with the market? We’re available anytime to tour your property and make suggestions for maximizing the value.

by Greg Johnson 

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

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