The last residents have checked out of an old Broadway motel, as homebuyers start inking deals for a permanent stay in Platt Park.
Littleton Capital Partners and Mercury Real Estate Partners are planning 40 new condos at South Broadway and Iowa Avenue. They’ll replace a $40-per-night motel with homes starting just over $200,000.
Littleton Capital Partners head Jonathan Bush thinks buyers are ready to pony up a down payment for more than a night’s stay because the location is front row to one of Denver’s biggest commercial corridors, but backs up into the Platt Park neighborhood.
“You have all of the access provided by South Broadway, there are a lot of exciting destination restaurants finding a home there,” he said. “And you have Platt Park two blocks to the east, you’re five or six blocks away from Pearl Street and all of those restaurant and shopping options.”
1616 South at Platt Park, as the building is called, will take shape on a 0.65-acre parcel that Little Capital Partners and Mercury Real Estate Partners bought for $1.7 million near the end of 2015.
Bush said Mercury identified the site and had it under control before bringing Littleton Capital Partners in as a development partner. Going vertical with a residential project made sense, Bush said, and they settled on for-sale units after having a look around the neighborhood.
“We chose condos over apartments because, as we looked at the market, we felt there was a decent existing supply of apartments along Broadway,” Bush said. “And there was a lack of new condo supply in the Platt Park submarket.”
1616 South will have three studios, 25 one-bedrooms and 12 two-bedrooms. Sizes range from 570 square feet to 1,365 square feet. The least expensive apartment will sell for $211,000, and the priciest is listed at $535,000.
Littleton Capital Partners and Mercury will build four units in accordance with Denver’s Inclusionary Housing Ordinance, which requires developers to sell 10 percent of new condos at reduced rates to renters making less than 95 percent of the area’s median income.
The property also will include 7,400 square feet of for-sale retail space fronting Broadway on the ground floor. Bush said the commercial condos could be cut into four or five units, depending on buyer interest. A parking lot will fill the rest of the ground floor.
LIV Sotheby’s is selling the residential condos and Urban Legend will list the retail units. Cunningham Group is the architect and Bradbury Stamm will be the general contractor. Bush said they’ve yet to finalize the construction loan.
The motel has been shut down in recent weeks, and the construction fence should be up any day. Bush said demolition starts next week, and construction will begin in mid-March. He’s expecting it will take about a year to build.
So far, 1616 South has 13 units under contract. Bush said he’s seen interest across a range of unit types.
“It’s been a very good mix of the largest studios to some of the bigger units,” he said. “It’s been kind of the broad range of buyers that we would expect would want to live in the neighborhood.”
As the motel starts to come down, Bush said one piece of the former inn simply named “Broadway Motel” will stick around at 1616 South. They plan on saving and restoring the building’s now-faded road sign that previously beckoned travelers to stop in and call it a night.
After a fresh coat of paint and some other touchups, the same metal sign will hang in the lobby to greet new homeowners.