601 Canyon Blvd

When completed, there will be four brand spanking new residential dwellings in this multifamily building in downtown Boulder. Here’s the breakdown:  three two bedroom units, one single bedroom unit, plus a carport.   The permit places the value of construction at $522,295 plus $25,000 for the carport. 


The rundown multi-family property was acquired in 2012 for $675,000 and Firstbank stepped up with a loan for $1.9MM.   See this old listing for photos and details.   Note the potential view. 

The Luxury Rental Market 
It can be challenging to ballpark luxury rents, but let’s look at a few comps and try to triangulate.  Solana at Boulder Junction prices two bedrooms at $2,610 and 1 bedroom studios at $1,450 a month.    The last time I checked the Residences at 29th Street, 2 bedrooms were priced up to $2,350 and 1 bedrooms started at $1,400 (research note).   Solana and the Residences at 29th Street luxury market rentals, but neither are in as desirable a location as 601 Canyon.   Looking nearer to the project, The Arette commands astronomical rent – north of $6,000 a month while a more humble 2 bedroom unit in a similar location (without views, not updated) is asking a mere $2,100.  


I think it’s a safe bet that 601 Canyon will have fantastic views and luxury appointments.  I’d expect the developer has modeled at least $3,000 per month for the 2 bedroom units and $2,000 a month for the 1 bedroom.  For modeling purposes, $11,000 a month for the building is a good (conservative) estimate.  The market might support rent as high as $14,000, in my opinion.