Downtown Denver condo market faces challenges as inventory grows

Downtown Denver s condo realm faces a harsh reality as prospective sellers grapple with a surge in inventory while foreseen buyers have become more cautious about making large purchases Newest figures from the Denver Metro Association of Realtors shows a increase in available condos and townhomes compared to last year But this glut has not led to sales Purchases dropped by in the first five months of the year with median prices falling and days on the sector soaring from to days All the while a new building under construction will bring hundreds of new units to the territory becoming downtown s second-largest condo building by unit count Upton Residences a two-tower project at th Street and Glenarm Place that tops out at stories is expected to be ready for occupancy next summer It will have units So far Upton s sold about of them which matches the developer s projections for a year before the building is expected to be completed commented Stacie Staub CEO at West Main the property s listing agent Units range from million penthouses as big as square feet to -square-foot one-bedroom condos starting at So far buyers have shown the the bulk interest in the building s two-bedroom two-bath condos which range in size from to square feet and cost between and Staub revealed To entice buyers the developer is offering a free year of HOA dues The developer will also pay the buyer s real estate agent a commission advance at the contract signing Possible buyers seem excited about the building but since it won t be finished for a year numerous show little urgency to sign a contract now Staub commented With so a large number of units selected buyers think they will still have options when it s ready she reported adding others likely hope to lock in a lower interest rate Those who want an older unit with particular history can come to Grant St where Delroy Gill of LIV Sotheby s International Realty represents the sellers of a th-floor unit once owned by Gov Jared Polis who purchased it for million in while serving in the U S House of Representatives Polis sold the condo to Himmelstein Assets a Florida-based LLC in for Gill listed the -square-foot unit in mid-May for million But he reported the owners who also have homes in Breckenridge and Miami have been trying to sell the two-bedroom three-bath unit off-and-on since The condo is in move-in condition and requirements minor updates to personalize and make it someone s new home based on their style Gill stated The building s amenities include an indoor pool sauna private fitness facility and space in the building s wine cellar The challenge Gill and other realtors face is getting possible buyers to consider moving downtown Related Articles Sponsored Picky buyers stubborn sellers keep Colorado home prices high RTD station s parking attracts second advance proposal in seven months Couple s proposed demolition of Wash Park home prompts push to save it again Developer to demolish Centennial office for apartment project Denver judge orders CBZ Management to turn over records from its rental properties to Colorado attorney general It s a good location if you re a downtown person Gill stated It s outside the noise of downtown and on the edge of where all the traffic is Another challenge for condos can be high HOA dues such as the monthly fee for the condo Gill is attempting to sell Why spend that amount when you could buy house or townhome for the same price Gill commented Back at Upton Residences Staub announced early interest is coming from both younger urban singles and couples as well as older buyers who are considering downsizing or relocating from a rental group You can go to a show a contest or restaurants without having to drive any more Staub disclosed One of the bigger challenges for new buyers is that the project is in an area that hasn t previously been residential Besides building the condos the developer is also focused on amenities including a rooftop pool with hot tub and a resident lounge and retail space There s nothing to compare it to Staub reported It s not Uptown downtown or RiNo Get more real estate and business news by signing up for our weekly newsletter On the Block