What’s the deal with the Beauvallon condos in Downtown Denver? It is a question I get a lot. In fact, of all the great buildings in Downtown Denver for sale, I get more inquiries and questions about the Beauvallon than all the other condo buildings Downtown combined.
Why you may ask? First, I believe it has a lot to do with striking appearance of the building. The architecture is unlike any other building in the city and lots of people comment on how much they love the visual appeal of the building. Second, and most importantly, is the pricing in the building. Units that once sold for $500,000 now sell for under $300,000 and one bedroom units with great views can be had for less than $150,000. So these prices must be too good to be true, right? A year or two ago I would have said yes, but now it is a different story.
The Beauvallon was completed in 2001 and by the time it hit the market for sale, was one of the hottest properties in Denver. But as time wore on, construction defects started popping up. Proper drainage was not installed on the building and as a result, water began seeping behind the stucco, leading to major water problems throughout the building and in individual units.
In an effort to stop the problem before it got worse, the Home Owners Association for the building was forced to increase the monthly dues to produce enough money to fix the building. As the HOA fees rose, adjustable rate mortgages began adjusting and the economy took a turn for the worse, the building began seeing more and more foreclosures pop up. And when a unit goes into foreclosure, the bank that owns it stops paying the mortgage meaning the rest of the owners have to pick up the slack, again resulting in higher HOA’s, and more owners unable to afford their mortgage.
Fast forward to 2011 and the building is in a much different state. The HOA sued the builder for construction defects and won a huge settlement that was large enough to completely remove all the stucco from the building, repair all the water damage, put new windows and doors on every unit and install the proper gutter and downspout system to prevent this from ever occurring again. The HOA that runs the building has been awarded HOA of the year since and current residences couldn’t be happier.
As a result of all this and with the poor reputation the building suffered, property values have plummeted in the building. HOA fees are still on the high side, but on par with a few other buildings Downtown. The owners and HOA continue to work diligently to return the building to its former glory and I believe in a few years the Beauvallon could be a highly desirable place to be. If you believe in buying low and selling high, it could certainly be a good time to get into the building and enjoy all it has to offer until values return. For more information about the units available, feel free to contact me directly.