A recent sale and a few contracts in this small but significant market in Telluride seem to be signaling a change from the lows that were set during the recent recession.
First the good news, and then an analysis of the low sales during the recession. The sale of the Red Brick Condominiums building located at 209 E. Colorado Avenue for $4,500,000 showed market strength for a quality product. This building consisted of two roughly one thousand square foot commercial spaces, a deed-restricted studio apartment, and a 3,300 square foot, 4 bedroom, 4.5 bathroom, luxury penthouse with a large deck. The penthouse was the only unit being offered for sale for $3,300,000. The buyer liked the whole building and wanted to control what was happening below them, and they made an offer to buy the whole building.
Another quality project that just contracted and is scheduled to close in the beginning of December is Ray Messier’s building on South Fir Street listed for $5,600,000. This 4 bedroom, 4 full-bathrooms, 3 half-bathrooms, 4,614 square foot building again demonstrates market rebound and quality sells.
Two other contracts worth noting are the lease-purchase of the Telluride Times Building with asking price $3,183,000, scheduled to close the end of 2013; and the smaller commercial Wasatch II unit listed at $395,000 that contracted within one week of being offered for sale.
The commercial market has to overcome some low, low, recession sales such as the Emporium Building on the corner of Colorado Avenue and North Fir St. It has 4 stories (including basement) and a total of 13,500 square feet. This sale occurred in September 2010 for $3,175,000 or $552 per square foot. The sale of Community Banks’ property (the Old Honga’s Restaurant) on South Oak Street sold together with a development parcel on the corner of Pacific Avenue and Aspen Street for only $3,175,000. This was owned by the FDIC. Other note-worthy low sales were the Bookstore and HUB spaces in the old Pekkarine Building that sold for $394 and $372 per square foot respectively. There were very low prices for strictly retail, main-level, commercial spaces.
As far as listings go, there are not too many commercial properties offered for sale. The only whole-building currently offered on Main Street is the historic Mahr Building listed for $2,749,000 with 3,676 square feet. This is a two story building with expansion potential. Two other whole-buildings are offered for sale on South Oak St: the historic Dahl House, 3,065 square feet listed for $1,394,575; and the old Blue Point Restaurant Building, 4,855 square feet offered at $3,995,000. As far as currently listed properties, I see the Mahr Building and the Dahl House as very well positioned in the market.
Dirk de Pagter
Telluride Real Estate Brokers, Inc