What's the deal with the Beauvallon condos in DowntownDenver? It is a question I get alot. In fact, of all the great buildingsin Downtown Denver for sale, I get more inquiries and questions about theBeauvallon 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 thebuilding. The architecture is unlike anyother building in the city and lots of people comment on how much they love thevisual appeal of the building. Second,and most importantly, is the pricing in the building. Units that once sold for $500,000 now sellfor under $300,000 and one bedroom units with great views can be had for lessthan $150,000. So these prices must betoo good to be true, right? A year ortwo ago I would have said yes, but now it is a different story.
The Beauvallon was completed in 2001 and by the time it hitthe market for sale, was one of the hottest properties in Denver. But astime wore on, construction defects started popping up. Proper drainage was not installed on the buildingand as a result, water began seeping behind the stucco, leading to major waterproblems throughout the building and in individual units.
In an effort to stop the problem before it got worse, the HomeOwners Association for the building was forced to increase the monthly dues toproduce enough money to fix the building.As the HOA fees rose, adjustable rate mortgages began adjusting and theeconomy took a turn for the worse, the building began seeing more and moreforeclosures pop up. And when a unitgoes into foreclosure, the bank that owns it stops paying the mortgage meaningthe 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 differentstate. The HOA sued the builder for constructiondefects and won a huge settlement that was large enough to completely removeall the stucco from the building, repair all the water damage, put new windowsand doors on every unit and install the proper gutter and downspout system toprevent this from ever occurring again.The HOA that runs the building has been awarded HOA of the year sinceand current residences couldn't be happier.
As a result of all this and with the poor reputation thebuilding suffered, property values have plummeted in the building. HOA fees are still on the high side, but onpar with a few other buildings Downtown.The owners and HOA continue to work diligently to return the building toits former glory and I believe in a few years the Beauvallon could be a highlydesirable place to be. If you believe inbuying low and selling high, it could certainly be a good time to get into thebuilding and enjoy all it has to offer until values return. For more information about the unitsavailable, feel free to contact me directly.
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