Source: Andrew Dodson of the Denver Business Journal
A lot happened in 2019 for the Denver real estate market. Here are a few highlights.
Opportunity Zone Projects
Investors and developers invested around $1 billion in opportunity zones, a plan known as a “once in a lifetime federal economic development program” that allows investors to defer and possibly eliminate capital gain taxes by investing in underdeveloped neighborhoods.
iBuyers Came to Denver
Zillow and Open-door bought hundreds of homes, allowing sellers to close in as little as week. Although we saw more of this is 2019, it actually represented only 1% of the housing market. As convenient as it may sound, ask one of us to tell you about the downfalls (hello 8-10% fees!)
Apartment-community Sales Galore
What happens when you mix low interest rates with increased rental rates? Apartment deals. New construction and old apartment buildings were traded frequently in 2019, including trading Union Denver to Daydream Apartments (with plans to utilize Airbnb ahead) and the iconic Poets Row on Cap Hill to a buyer that made contemporary updates to the vintage sites.
Broadway, Alameda Station Development
South Broadway is about to get a major addition. This 10-acre development will have 887 residential units, 380,000 square feet of office space and 180,000 square feet of retail/restaurant space across the five building layout! As for Alameda Station, 75 acres of land with 1.25 million square feet of retail/residential space will get an addition 8+ million square feet of development. Talk about big changes.
Source: We Are Apartments
Denver placed 9th out of 50 metro cities for hardest places to add apartments. Denver’s biggest barriers to growth are the lack of additional land to develop within the county and city regulations. Factor in expensive land and high construction costs and it’s no wonder that affordable housing is becoming more and more difficult to find. Read the full report or:
Sometimes the jargon used in real estate seems confusing, and words appear to be interchangeable. When looking for a condo, loft, apartment, or cooperative apartment, this may help clarify for you. What’s the difference?
A condominium is a type of ownership. Often shortened to “condo”, it is a collection of individual residential or commercial units and common areas as well as the land upon which they sit. A condo can be attached to other units or can be a collection of detached units.
Individual ownership within a condo is construed as ownership of only the air space confining the boundaries of the unit. The boundaries of that space are specified by a legal document known as a Declaration which is filed with the local governing authority. These boundaries will typically include the wall surrounding a condo, allowing the unit owner to make some interior modifications without impacting the common areas. Anything outside this boundary is held in undivided joint ownership interest by a corporation established when the condo was created. The corporation holds this property in trust on behalf of the unit owners as a group and does not have ownership itself.