Over the last few years with dwindling inventory more and more people are looking to build, which then prompts people to ask me where are the hot places to build? If you follow the money, it leads you to the builder. Plenty of builders are working the Observatory Park, Washington Park, and Bonnie Brae areas. These homes were built at the turn of the century and are being bought up in record numbers. Why? Because of location, location, location.
Washington Park is a no brainer with its proximity to one of the city’s best parks (not to mention its minutes from downtown). This area held its value during the real estate crash and will always be in demand. The minute a teardown house goes on the market it has four or five offers all from builders willing to pay cash. How much you say? That depends on the size of the lot, but the lot size that is most in demand is 6,250 sq. ft. (sometimes referred to as a double lot, two 3,125 sq. ft lots). A 6,250 lot on the East side of Wash Park can go from anywhere around $800K to $1M (not including Franklin St where the homes look at the park). Can you imagine builders paying $900,000 just to tear down the house and build a new one between $2.1M and $3M? Smaller lots like 4,650 sq. ft should fetch anywhere between $600-$700K. A teardown on the West side of Park will sell for less since the east side is more desirable. A 6,250 sq. ft. lot on the West side of Park should sell anywhere between $600K and $750K.
Bonnie Brae is across the street from Washington Park and while it’s not as desirable as Washington Park it still has an incredible location and in some areas much bigger lots. 10,000 sq. ft lots in Bonnie Brae are not unheard of, but again one will look at paying around $1M for such prime real estate.
Observatory Park is the last one we’ll mention today although there are many more great areas like Hilltop, Corey Merrill and many more. O Park as most people refer to it sits across University from DU and has another really great central location with a wonderful park in the middle (there is actually an old observatory there and many more parks around the community). Like Wash Park and Bonnie Brae, the homes were built in the early 1900s and usually sit on a 6,350 sq. ft. lot or 7,500 sq. ft lot. Occasionally you’ll see a rare 9,500, 10,000, or 11,000 sq. ft lot pop up on the market but they are rare and expensive. A 9,500 sq. ft lot in O Park will cost you between $800-$950K depending on the block and the location. Generally, homes closer to University than Colorado Blvd have a little higher value and somewhere in the middle between Evan and Yale is best.
We have connections to many great custom builders so if you are thinking about going in this direction please reach out to us at the Colorado Dream House Team. It is not easy to find one of these teardown lots for sale. Many times they don’t even hit the MLS – most of these are off-market transactions so you need to have contacts and people in the know inside the neighborhood. We have a lot of these resources and tools in these three neighborhoods so again if you are looking for a lot, but can’t find one, make sure you speak with us here at the Colorado Dream House Team. We can introduce you to the builders and walk you step by step through the process. Contact us at 720-446-6325 or firstname.lastname@example.org