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Tag: asvaldi@denverpost.com

  • Metro Denver in the middle of its biggest apartment boom since the 1970s — but rent prices aren’t budging

    Metro Denver in the middle of its biggest apartment boom since the 1970s — but rent prices aren’t budging

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    Metro Denver developers pushed out more than 5,000 new apartments in the third quarter, and rents barely moved despite that high volume, according to a quarterly update from the Apartment Association of Metro Denver.

    For the past several quarters, developers have added as many apartments in three months as they would average across an entire year before 2011.

    “I have been concerned about this for some time that we would flood the market with lots of apartments and vacancies would shoot up,” said Cary Bruteig, author of the quarterly report during a press call Wednesday.

    Rising vacancies would in turn force landlords to slash rents. So far, that hasn’t happened.

    Average rents in the region rose $8 last quarter to $1,911 and are up 1.2% over the past year, below the 1.4% rate of inflation measured in September.

    The overall vacancy rate fell 0.3% to 5.3% and moved lower in 18 out of 33 submarkets. Denver, which has seen a high concentration of new multifamily projects, had the highest county vacancy rate at 5.8%. The Central Business District had the highest submarket rate at 6.6%.

    Fueled by strong migration to the state, the 1970s was a boom era for apartment construction. But after an oil bust and then a real estate bust, things calmed down in the following decades. The region averaged about 5,000 new apartments a year until 2011, when the average kicked up to around 10,000 a year, Bruteig said.

    Over the past 12 months, developers have added 21,158 new apartments. That is double the pace seen last decade and equivalent to about 5% of all the existing apartments built in the past 100 years, Bruteig said.

    Even though fewer people are moving to metro Denver from other states this decade compared to last, Bruteig said, “We see no softening in terms of people moving into new apartments in the metro area.”

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    Aldo Svaldi

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  • Casino mogul Steve Wynn and his billionaire neighbor in Florida pay $108 million for mansion on Aspen Mountain

    Casino mogul Steve Wynn and his billionaire neighbor in Florida pay $108 million for mansion on Aspen Mountain

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    Only a handful of states can claim a single-family home sale topping $100 million. Colorado has joined that rarified group with the record $108 million closing on Monday of 419 Willoughby Way on Aspen’s Red Mountain.

    “It is great for the market. It is a testament to how special a community Aspen is on a global scale,” said listing agent Riley Warwick, who is with the Saslove & Warwick Team at Douglas Elliman Real Estate.

    The founder of the Bellagio and Wynn resort casinos, Steve Wynn, teamed up with Thomas Peterffy, a pioneer in computerized and discount stock trading, to purchase the home for close to the $110 million the Wall Street Journal reported earlier this month.

    Patrick Dovigi, founder and CEO of Green for Life Environmental and a former professional hockey player in Canada, was the seller. Dovigi, who has invested in several Aspen properties, purchased the home in 2021 for $72.5 million from Lewis Sanders, former chairman and CEO of Sanford C. Bernstein.

    “Only a few markets have reached that kind of sale,” said Julie Morrah, president of Aspen Title & Escrow, which handled the title and escrow work on the purchase.

    The U.S. saw its first $100 million home sale two decades ago. Since then, about two dozen sales, not counting Monday’s purchase, have crossed that mark, according to the Wall Street Journal.

    Most $100 million-plus home sales have happened in Manhattan; Miami and Palm Beach, Fla.; Los Angeles and Malibu, Calif.; and Hawaii. Aspen now joins that list.

    Monday’s sale busted a short-lived record for Colorado set last Thursday of $77 million paid for Owl Creek Ranch, also in Aspen.

    So how did Dovigi reap a 50% return in just three years? He and his wife, an interior designer, remodeled the property, originally built in 2009.

    The house sits in a prime location at the base of Red Mountain overlooking Aspen. At 22,405 square feet, the house has 11 bedrooms and 17 bathrooms, a guest house, a large garage, and a heated outdoor pool.

    Pitkin County has capped future home construction at a maximum of 9,250 square feet, Warwick said. Unless the rules change, Aspen won’t ever see a new home built at that size, so scarcity also helped push the price higher.

    Unlike a traditional closing where sellers, buyers and their agents sit across from each other at a table and hand over keys once the wire clears, the deal was done remotely and through attorneys, which is typical for the highest-end homes.

    “You have a lot of attorneys involved doing a lot of the heavy lifting,” Morrah said, noting that a deal of that size had extra tight security.

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    Aldo Svaldi

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