Denver Real Estate Blog

Development is a strange and complex process, especially in neighborhoods with over a century of history, character, and architecture.

Denver’s Highland neighborhood is one of those areas - and there is a little bit of good, a little bit of bad in the news today.

Which do you want first?  The bad?  It’s always sad when a property is neglected to the point that it becomes a safety hazard - especially when it’s a 107-year old house in a fantastic location.  What really strikes me about the article in the Denver Post is this: the developer that purchased the property a couple of years ago applied twice for permission to demolish the property and was denied due to the historic status of the neighborhood.  So, he neglected the property until the city decided to demolish it for him.  How does that make sense? 

Anyway, I guess it’s all just part of the natural process of development, but it is a sad photo, isn’t it?  Hopefully now the developer will actually do something with the property.

So what’s the good news?  On the East side of Highland, in the old Olinger mortuary space, development is in full, compliant, swing with the announcement that the same group that brought the neighborhood goodies like Lola and Vita is doing it again, and I can’t wait to see how it turns out!  Apparently they already have one new restaurant concept committed to the space, and will make room for several other retailers and restaurants, which will drive up property values in LoHi even further.

I guess it’s all part of the Circle of Life of a growing, thriving, changing neighborhood (insert Lion King theme song here).

10 Cities Where It’s Smarter to Buy - According to Forbes Magazine

For people who want to own a home, the premium to buy-the spread between what they’d spend to rent and what they’d pay for a mortgage-is much lower than the 15-year average in many cities.

To determine what cities are smart buys, Forbes magazine computed the premium and also identified locales where economists predict home prices will go up the most over the next five years.

Here are the top 10 cities the magazine chose as the best places to buy right now.

1. Boston-Cambridge-Quincy, Mass.
2. Charlotte-Gastonia-Concord, N.C.-S.C.
3. Chicago-Naperville-Joliet, Ill.-Ind.-Wis.
4. Cincinnati-Middletown, Ohio-Ky.-Ind.
5. Denver-Aurora-Broomfield, Colo
6. Minneapolis-St. Paul-Bloomington, Minn.-Wis.
7. Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.
8. Portland-Vancouver-Beaverton, Ore.-Wash.
9. San Francisco-Oakland-Fremont, Calif.
10. Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.V.

The plan for the Sunnyside Light Rail Station area.

Many of the buyers that I work with in Northwest Denver start their search at Highlands Square - makes sense, after all, who wouldn’t want to live a couple of blocks from one of Denver’s most popular and hip neighborhood centers? 

But, for first-time homebuyers, the prices in West Highlands can be a bit out of reach.  Go a few blocks north or east, though, and there are opportunities to get a little more square footage, a bigger yard, or better finishes for the money - and the neighborhoods surrounding West Highlands are growing, thriving, and appreciating in value.

A perfect example is the Sunnyside/Chaffee Park area.  Many buyers, especially when searching the MLS or other online home listings, cut off their search at 38th Ave and won’t go further north, or at Federal and won’t go East, but the majority of the northern and eastern streets are totally quaint, tree-lined, quiet, and perfectly located between Lower Highland (LoHi), West Highlands, and Downtown Denver.  Home prices are typically at least 10-20 percent lower once you cross 38th or Federal, but these areas are perfectly situated for both future growth and appreciation.

And even further proof for where this neighborhood is headed?  Check it out:

The City and County of Denver has begun a process to plan for change in the areas surrounding future transit stations. In 2006, the city completed a Transit Oriented Development (TOD) Strategic Plan that identified a need for land use planning for the 38th and Inca station area on RTD’s future Gold Line commuter rail corridor.  Over the past year, RTD examined the station location as part of the Gold Line Environmental Impact Statement.  As a result of this process, RTD is recommending the station be located at approximately 41st and Fox streets on the east side of the Union Pacific Railroad. Over the past two years, the City and County of Denver worked with community members to develop a station area plan for the half-mile area surrounding the future 41st and Fox station.  

Plan Goals: 

• Improve pedestrian connections to the station, between neighborhoods, and along major corridors
• Create opportunities to add more housing, jobs and services to the station area
• Incorporate plazas, parks and open space into redevelopment areas
• Capitalize on the station area’s proximity to Downtown and location on the Gold Line and Northwest Rail corridors
• Balance the needs of new development and existing uses

Plan Elements

• Development of a high intensity activity node close to the station on the east side
• Creation of a pedestrian shopping corridor along Fox Street
• Mixed-use redevelopment of the former Denver Post site
• Linked park and open space improvements to enhance neighborhood livability by providing positive orientation, buffering, aesthetics, recreational amenities, and storm water management
• Capture partnership benefits with Regency Student Housing by encouraging ties between academic institutions, student populations, and incubator employment uses
• Respect existing housing west of the station by redeveloping along the edges of the Sunnyside neighborhood leading to Inca Street and in a mixed-use node at 38th and Navajo
• Incorporate historically significant structures by drawing design inspiration from the area’s historic, industrial character
• Promote pedestrian and bicycle connectivity with improvements to Navajo, 38th, Elati, 41st, 44th, Fox, Inca and other streets
• Promote structured RTD parking that is shared with adjacent development
• Capture views of Downtown and buffer the station area by locating taller structures along I-25 and I-70
• Support for sustainable development, green building practices, housing affordability and healthy, walkable communities 

To check out the entire development plan, please click here.  If you would like to look at property on the market in Sunnyside, or anywhere in the Denver Metro area, contact me!

John Rebchook of InsideRealEstateNews.com has a great write-up on his blog, posted a few hours ago, detailing Denver’s latest top spot - Denver is on a lot of Top 10, Top 50, Top 100 Lists this time of year, as everyone wraps up 2009 in a big round ball and chucks it toward the recycling bin, but this is a FANTASTIC way to welcome the new Real Estate Decade.

Here’s a highlight…

Denver performed the best of the 20 major metropolitan housing market tracked in the closely watched S&P/Case-Shiller Home Price Indices report released today.

Denver’s housing market showed only a only a 0.1 percent dip in housing prices in the year ending in October, compared with an overall drop of 7.3 percent for the 20 areas in the report. The 10-city index in the report fell overall by -6.4 percent.

Tom Clark, executive vice president of the Metro Denver Economic Development Corp., said that Denver’s No. 1 ranking is the latest sign that Denver’s economy is out-performing the nation’s.

“Job growth does matter,” Clark said. “What a concept.”

Gary Bauer, an independent residential broker in Denver couldn’t agree more.

“Once again, this shows the strength of the Denver market,” Bauer said. “We continue to lead the nation as far as recovering from the recession - the recession is not over yet - but we will be one of the first to emerge.”

Bauer said that “two-thirds” of the Denver-area housing market “still moving,” if not showing spectacular performance. Only the high-end market continues to be soft.

“The market has moved from the only activity being in the first-time buyer to what I call the “move” buyer,” Bauer said.

Bauer has said that the move buyer will benefit from the expansion of the federal tax-credit for qualified people who own their owns. Some of those buyers who qualify for the $6,500 tax credit will downsize to smaller, less expensive units, while others will move-up, according to Bauer and other Realtors.

Read the rest here, then get off the fence already and join the party!

The door and wall leading to the basement, before.

Holy moly, I have really been neglecting this blog.  It’s been a bit crazy in Stacieland, though I am beginning to see the light - and the closings.   We are also remodeling our basement, and although it’s sort of hands-off for us this time as we have a great team of contractors working around the clock to get it finished in time for holiday guests, it has still created a bit of havoc around our house!

Even though it’s not quite done, I wanted to post some pictures and detail the work that we are doing - and estimate the value that it might add to our home, especially as we are considering selling sometime in the very near future.

Before:  Our basement must have been finished sometime after the house was originally constructed, which was 1986, but it was definitely stuck in the 80’s, with light wood panelling, mismatched carpet, and flat white paint throughout.  The dropped ceiling was glued to the drywall above it, and the boxed flourescent lights were not very flattering, to say the least.  The worst part was the huge bathroom/laundry room combination space - yuck.  The basement, no matter how many times I tried to organize it or make it appealing as a playroom, had really turned into a giant storage space with a laundry room where I hated to do laundry, and it really was not being used well at all.

After: We opened up the walls from the main floor all the way down to the basement, and removed the door entirely.  The idea is to integrate the 1,300+ SF in the basement into the rest of our home, and to make it truly usable space, which we desparately need.  We kept the 2 bedrooms which were existing, because the layout isn’t bad and the last thing we want to do is decrease value by turning 6 legal bedrooms into 4 or 5.  We installed recessed lighting throughout the space, drywalled the ceiling, removed the hideous wooden panelling and textured the walls, which will be the same creamy latte color as the rest of the house.  The baseboards and mouldings will match in white, and the carpet is a neutral speckled short pile - which we thought would be cozier than a berber or loop-style rug, but still stain-resistant and forgiving of our busy and often messy kiddos. 

Bathroom/laundry room, before.

The main room will house a living space with comfortable couches, a large flat-screen TV and the wii.  There will also be a game/poker/crafts table and a treadmill. 

There is now a wall and door separating the full bathroom and the laundry room - yay!  With ceramic tile, fresh paint, and a new vanity and mirror, as well as shelving in both spaces, I think this area alone will represent the biggest monetary return.

There is still plenty of storage under the stairs, but instead of 3 rough cut-outs for access, we installed built-in shelving in one space and closed off the other, leaving one access door for the storage area, which is located behind the bathroom door.

So, to break it down project-by-project, here is my estimated cost vs. value add sheet:

-Removing upper walls and door between main floor and basement:  Cost: $900    Value Added:  $4000

- Installation of recessed lighting and new ceiling:  Cost $2000  Value Added:  $3000

- Construction of wall and door between bathroom and laundry room:  Cost:  $300   Value Added:  $5000

Wood panelling, dropped ceiling, ugly cabinets and carpet, before.

- Cosmetic Improvements - tile, paint, texture, carpet:  Cost   $4000  Value Added:  $5000

- New bathroom vanity, mirror, hardware, and sink:  Cost $300   Value Added:  $1000

- Built in shelving:  Cost  $100   Value Added:  $500

Overall, I think this remodel will not only improve the value of our home for resale, it will also help it to sell more quickly.  For a basement to have a real impact on purchase price or days on market, it has to be done with a tight budget, and with the overall value of the property in mind.  Don’t dump $100K in to a basement if the entire house is only worth $200-300,000.  But, Colorado buyers are certainly looking for usable space in the basement in most neighborhoods, and if you can add value by making simple cosmetic improvements, it’s a good investment for sure.

(I will post more pictures as soon as it’s totally done!)

I’ve been thinking for a while now about writing a post about some neighborhoods near Downtown Denver that have SO much potential  - and what do you know, Westword has gone and done it for me, complete with corresponding Google street view links!

Everybody knows I love Northwest Denver, and I believe in its future development and potential with all my heart.  I just have a soft spot for the place where I had the MOST fun bartending (at Three Dogs Tavern when it first opened) and the office that I now call my second home (at LIVE Urban Real Estate) - I have seen this area grow and evolve in the coolest, most organic and honest way, and I just can’t wait to see what happens next.  Of course, the closer to Highland Square you get, the pricier the properties get, as well - but there are some areas that have yet to cross that jumbo-loan barrier, and I think that there are some great investments to be had - in Sunnyside, in South Highlands, and even in LoHi. 

There are also some areas that have yet to be tapped out as far as development on the other side of the city - in Park Hill, Montclair, and even Globeville.  I think this is a super interesting wrap-up by the Westwood, and a good little guide to use if you are looking for either residential or commercial properties that would be affordable to either first-time buyers or entrepreneurs, before they get too hot to handle.  Check out Westword’s Top Ten Under-Utilized Neighborhoods!

A couple of great articles in the past day or so that have me smiling…I heart Denver, and it continues to evolve in this cool, organic way that we have come to be spoiled by…

Arapahoe Square will be Redeveloped, Finally!  From yesterday’s Denver Post…

Image courtesy of www.arapahoesquare.com (great blog - check it out!)

A long-forgotten swath of parking lots and low-rise buildings between Coors Field and Uptown, Arapahoe Square hasn’t seen the redevelopment other downtown areas have seen over the past two decades.

That could soon change.

With new residential developments going up and business-interest groups rekindling intrigue in the area - which spans from Lawrence Street to Welton Street and 20th Street to Park Avenue West - Arapahoe Square stands to get a face-lift in the coming years, say urban planners, developers and downtown advocates.

“Arapahoe Square isn’t broken,” said Tami Door, president and chief executive of the Downtown Denver Partnership. “It’s a clean slate.”

In the next few weeks, city planners will select consultants who will advise them on best uses for land in the Arapahoe Square area, said Steve Gordon, development program manager, for the Denver Department of Community Planning and Development.

“That’s when we’ll get it done more rapidly,” said Gordon.

Planners have long targeted Arapahoe Square as a place for urban renewal.

According to a 2007 plan developed by the Downtown Denver Partnership, “the remaining buildings are both economically and architecturally diverse, combining urban lofts and low-rise neighborhood commercial with warehouses, transportation facilities and light industry.”

Among the goals for the area are restoring landscaped tree lawns; converting selected streets to two-way; improving pedestrian walkways; finding redevelopment opportunities along the Welton Street light-rail line; and redeveloping some of the many surface parking lots in the area.

“It’s a blank canvas,” said Brian Higgins, a Denver-based architect and developer. Higgins has started pre-construction selling of his residential complex in Arapahoe Square called Carbon Flats.

The development targets younger, lower-income buyers who cannot afford pricier residences in nearby LoDo or downtown. Read the rest here.

 Denver is Super Popular, It’s Official From the Denver Business Journal

Denver is tied for second place after New York among America’s most popular cities to live in, and Colorado is No. 5 among the nation’s favorite states, a Harris Poll released Monday says.

The survey asked where people would want to live if they didn’t live where they are now.

This is the first time in the 13 years of the Harris survey that Denver has ranked higher than No. 4 on the list of most-popular cities. The Mile High City was No. 9 in last year’s survey, but since then it has spent time in the national spotlight as the host city for the 2008 Democratic National Convention.

New York City ranks No. 1, as it has every year since 1999, followed by Denver and San Francisco in a tie for second. Read the rest here.

There are still a few days left to get a home Under Contract, close by November 30th, and get your $8,000 tax credit as a First Time Homebuyer!  This would be a perfect fit…a home thoughtfully updated with designer colors and materials - this house is move-in ready, perfect for entertaining, and in a gorgeous setting.

3 Bedrooms, 2 Bathrooms, 1392 Finished SF…great open layout with updated EVERYTHING!

Slate and Travertine Tile, Hardwood Floors, New Carpet and Paint, Updated Kitchen cabinets with new hardware and countertops.

Great location close to the new Children’s Hospital complex, shopping, and the airport, as well as Downtown and the mountains!

Have you found the house of your dreams, but are sitting back waiting for the price to drop?  In Metro Denver, where price deductions are small and listings are selling relatively fast, you might be out of luck.  According to today’s Inman News, some cities, Denver included, are showing not only average price increases, but also less price cuts, and less than 4% average between list price and sale price.  So, if you are in the market, don’t go house hunting way above your price range only to be disappointed when you can’t low-ball your way into a deal.  Ask your realtor for a solid net sheet and look at homes that are priced in your comfort zone! 

The whole story…

The percentage of listings with price reductions declined slightly from July to August, and when sellers did slash their asking price they made smaller reductions, according to an analysis of 27 markets by real estate brokerage ZipRealty.

While nearly half of homes on the market in August — 44.2 percent — had seen at least one price reduction, that’s down from 45.7 percent in July. The raw number of homes with price reductions, 281,765, was down 4.3 percent, as inventory in markets tracked by ZipRealty fell 10.5 percent to 637,313.

The average price reduction was 9.6 percent of list price, down from 11.3 percent in July, while the the median reduction amount ($24,494) was down 2 percent.

There was considerable variation by market, with the highest percentage of homes with price reductions in Orlando (51 percent), Jacksonville (50 percent) and Chicago (49 percent).

The markets with the lowest percentage of listings with reduced asking prices were Denver (31 percent), Los Angeles (35 percent) and San Francisco (37 percent).

Sellers slashing asking prices in Las Vegas made the biggest reductions (21.7 percent), followed by several markets in Florida: Miami-Ft. Lauderdale-Palm Beach (19.5 percent), Orlando (17.3 percent), Naples (14.9 percent), and Tampa (14.1 percent).

Sellers reducing their asking price in Raleigh-Durham, N.C., made the smallest adjustment (5 percent), followed by Richmond, Va. (5.15 percent), Denver (5.3 percent) and Houston (5.3 percent).

In another comparison of listing price and selling price during July, listing and valuation site Zillow.com found U.S. homebuyers paid 3.3 percent less than list price on average, down from 3.5 percent in June and 4.6 percent in January.

I was recently talking to a potential buyer who happened into my Open House, and she commented on the seriously varied types of architecture that can be found in Highlands - and we agreed that was part of the beauty of the ‘hood - the mix of new and old, the beauty of a 100+ year old tudor 10 feet away from a spanking new modern “green” house and across the street from 3 beautiful old Victorians.

Now one of the major developers in Riverfront is bringing that some of that same cool juxtaposition to the Valley - I wonder what style of home he will build?!  Can’t wait to see it…

From today’s Denver Post…

A plan is in the works to build a single-family home amid the sea of condos and townhomes that have sprouted up in the Central Platte Valley near downtown.

Riverfront Park developer Mark Smith’s home will be the only detached residence in the neighborhood.

“It’s just something I kind of thought would be fun and different and interesting,” said Smith, head of East West Partners, which developed Riverfront Park.

Smith said he has been working with 4240 Architecture Inc. to design the home but isn’t likely to start construction until the market improves.

The 6,500-square-foot lot, which Smith bought in December, is in front of the Glass House condominium tower at Little Raven and 17th streets overlooking Commons Park.

Real-estate broker Deviree Vallejo lives in the nearby One Riverfront building and has a listing on the 12th floor of the Glass House. She said the question she was asked most during a recent open house was: “What’s going to happen on that lot?”

“If (Smith) builds a single-family home, unless it’s seven stories tall, that will make a lot of people in the Glass House happy,” she said. “The only question mark was that lot.”

Built around an internal courtyard, the 4,500-square-foot, two-story home will have views of Commons Park, the 17th Street corridor and the mountains. It will be contemporary in style and use stone, glass and brick similar to the materials used for the development’s other buildings.

“It’s a beautiful little addition to the architecture down there,” said Randy Johnson, principal of 4240.

The architecture firm also designed many of the buildings in Riverfront Park, including Park Place where Smith currently lives.

“It’s a real testament when a developer wants to put his private home in the midst of his development,” Johnson said. “It’s also nice in this economy that he’s still working on stuff.”