Those looking for an apartment in the Denver metropolitan area may be pleased to hear that hotel-turned-apartment-complex Turntable Studios was just sold for $31 million.
Built in 1967, local developer Nichols Partnership purchased Turntable, originally known as Hotel VQ, in 2014 for $9 million. After undergoing extensive renovations, the 13-story complex, now made up of 179 micro-units, sold at a price of $474 per square foot, or about $173,184 per unit.
Although the apartment complex’s buyer was not revealed, the buyer listed in the Denver County public record is Turntable Denver LLC. The IRS automatically classifies an LLC as a partnership or “disregarded entity,” depending on if there is one or more than one owner, and in this case, there seems to be just one owner — Colorado Springs attorney John Stinar.
Despite the fact that the global hotel industry generates approximately between $400 and $500 billion in revenue each year with one third of that revenue attributable to the United States, Nichols Partnership president and CEO Randy Nichols considers the conversion from hotel to apartment complex a financially sound decision.
“In 2013, Derek Ahrens and I looked at the then-VQ Hotel and had the idea for a micro-unit conversion,” Nichols told the Denver Business Journal. “Other interested buyers were looking to tear down the outdated hotel. We had a very different approach in mind and the market embraced this concept beyond our expectations.”
Another major factor in the renovation was the fact that Denver apartment prices are quickly rising. In fact, most experts recommend having at least enough to cover three to six months of living expenses, including your mortgage or rent, utilities, and other must-pay bills, regardless of your living situation. But for young adults who may have other expenses such as student loan payments, saving isn’t always feasible.
“We set out to provide renters with a great product at an attainable price point at a time when area rents were dramatically increasing and when both studio and one-bedroom units in the city were scarce,” said Nichols.
Turntable Apartments start at 365 square feet, and both studio and one-bedroom apartments are available. Renovations have been quite expansive, leaving these apartments in high demand — swimming is the most popular recreational activity for children and teens ages 7-17 in the U.S., and Turntable has been fully equipped with a pool in addition to a fitness center, clubhouse, dog run, media room, and outdoor entertainment area with a grill and fire pit.
Renters can also expect updated interiors — renovations included new cabinets, floors, balconies, and exposed concrete ceilings. On top of that, Turntable is located in picturesque downtown Denver. About 33% of respondents reported being willing to pay more for an apartment or house for good cultural venues, and Turntable is close to several attractions like Sports Authority Field at Mile High, Pepsi Center, Lower Lakewood Gulch and Crescent parks, and countless restaurants and eateries.
Ultimately, this sale seems to be viewed positively by everybody involved.
“The redevelopment was remarkable; the execution on design, amenities and the efficient use of space were certainly keys to success in lease-up and Turntable’s attractiveness as an investment,” said Terrance Hunt, vice chairman of ARA, A Newmark Company, which represented Nichols Partnership in the deal.