One of the first micro-apartment complexes in Denver has sold.
Development firm Nichols Partnership last week sold its 179-unit Turntable Studios adjacent to Mile High Stadium for $31 million to an undisclosed buyer.
The price tag comes out to $474 per square foot, or close to the range that upscale apartment projects fetch in neighborhoods closer to downtown or in Cherry Creek, said Terrance Hunt, a broker with ARA Newmark who started marketing the building at the beginning of 2017.
Hunt said the units average 365 square feet, the same size as the former hotel rooms. Rent averages $1,150 per month, Hunt said.
“Although it’s a small rent check, comparatively (per unit), it’s a high rent per square foot,” Hunt said.
He said the micro-apartment model befuddles some potential buyers.
“It’s a concept not everyone understands or embraces, simply because of the novelty,” Hunt said. “Some typical institutional buyers, this doesn’t really fit into their wheelhouse.”
Hunt said the unnamed buyer paid cash.
Denver’s Nichols Partnership bought the old VQ hotel in 2014 for $9 million, ARA Newmark said. That deal included 1.5 acres that the firm is keeping for future development, Hunt said.
Nichols then borrowed $15 million from First National Bank of Denver, according to public records, to tear apart the interior and install modern pipes, wiring and fixtures. Because the structure was concrete, the footprint of the apartments matches the size of the old hotel rooms, Hunt said.
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