Inside Real Estate News » Dee Chirafisi

Kentwood City Properties honored for bike sharing

John Rebchook — Sat, 14 Jan 2012 21:56:09 +0000

Brokers from Kentwood City Properties prepare for a Denver B-cycle tour of properties.

Kentwood City Properties recently was named the 2011 “Most Creative” sponsoring member of Denver Bike Sharing, a Denver-based, non-profit corporation that owns and operates Denver B-cycle to promote health, quality of life, and preservation of the environment in Denver.

Kentwood City Properties has also received the “Bicycle-Friendly Business of the Month” award from Bike Denver, a bicycle advocacy organization that works to promote bicycling in the Mile High City. The “Most Creative Sponsor” designation was presented to Dee Chirafisi, Broker Associate and co-owner of Kentwood City Properties, at Denver Bike Sharing’s sponsor appreciation breakfast last December at the Metro Denver Chamber of Commerce.

“We do property tours every Tuesday, and several of our agents ride their bikes rather than drive,” said Chirafisi. “We have purchased memberships to Denver Bike Sharing along with helmets featuring our company’s logo. We use bikes in our ads, have bikes in our office windows, and we have given Denver Bike Sharing memberships as closing gifts for people who buy a residence near a B-cycle station. We really try to be creative with the bikes throughout our marketing efforts to promote the initiative. It’s about the lifestyle, the convenience, and the environmental and health benefits. Denver Bike Sharing’s mission simply makes sense and we are proud to be part of it.”

Kentwood City Properties also hosts neighborhood property tours and encourages people to ride bikes to open houses. In addition, Chirafisi recently hosted a LoDo women’s group tour for 35 women, some of which had not been on a bicycle in years.

“Sponsoring the B-cycle program is good for Kentwood’s waistline and bottom line,” said John Hayden, a Broker Associate at Kentwood City Properties and chairman of the Mayor’s B-cycle initiative. “A number of our employees now bicycle to work. If a business that is traditionally dependent on cars, such as real estate, can integrate bicycling and B-cycles into its business, then so can other leading companies. It’s actually faster getting around downtown Denver on a B-cycle than it is to drive for many people.”

Contact John Rebchook at JRCHOOK@gmail.com

Dee part of luxury home network

John Rebchook — Sat, 30 Jul 2011 01:18:38 +0000

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Dee Chirafisi has joined a global network of brokers who market luxury homes.

Dee Chirafisi, an owner of Kentwood City Properties and one of the top Realtors in Denver based on dollar volume, is now representing downtown and central Denver neighborhood as part of the Seattle-based Luxury Real Estate network.

Chirafisi was invited to join the network by its chairman and publisher, John Brian Losh. Losh extends memberships to brokers and firms throughout the world who consistently demonstrate expertise in the marketing of luxury properties. The network’s “Who’s Who” in luxury real estate includes more than 1,400 members with properties in 69 countries and almost every state in the U.S.

Chirafisi is listing this home at 3216 Zuni St. for $950,000.

LuxuryRealEstate.com bills itself as the most-viewed real estate website exclusively dedicated to luxury properties. The site features more than 60,000 luxury properties, which have an average price of more than $2 million. According to Google Analytics, LuxuryRealEstate.com receives more than 2.6 million unique page view each month from 197 countries.

For more information, contact Chirafisi at deec@kentwoodcity.com or www.denverdee.com

Contact John Rebchook at JRCHOOK@gmail.com

Million-dollar homes show life; most sales still below $300,000

John Rebchook — Mon, 12 Jul 2010 21:56:44 +0000

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This home on Gaylord Street, listed for $2.4 million, went under contract in about a month.

Do you think expensive homes are a good investment? Take a poll at the end of this blog.

The market for million-dollar plus homes in the Denver area perked up in June from its dismal showing a year earlier, with closings rising 19 percent and price discounts falling, shows a report released today.

But a separate report, shows that despite the improvements at the high-end of the market, during the first half of the year the “sweet spot’ for home sales remains homes priced from $100,000 to $300,000, which accounted for 61 percent of all sale in the eight-county area.

Both of the reports were released by independent broker Gary Bauer, who analyzed Metrolist Inc. data from Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, Elbert and Jefferson counties.

“In 2008 to 2009, we were in markets that reflected the large number of foreclosures on the market,” Bauer said. “After people started gobbling up the homes in the lower-price ranges as fast as they could, we started getting a better handle on the foreclosure situation. Now, we are seeing more activity in the $200,000 and $300,000 ranges.”

Luxury homes attractive to buyers

He said the same thing is now happening with luxury homes. And as banks take back expensive homes and sells them for deep discounts, those homes will start to see the type of activity that the lower-end market has experienced, he said.

“I wouldn’t go as far as to say that million-dollar market is poised to improve yet, but I would say it is stable,” Bauer said. A separate report by Coldwell Banker Residential Broker Colorado, also showed a year-over-year improvement, although not quite as robust as Bauer’s analysis. Coldwell Banker’s report showed 53 homes closing in June at $1 million or above, about a 13 percent increase from 43 in June 2009. Reports, depending on the methodology, can vary a bit. “We show basically the same trend of an improving market,” said Chris Mygatt, president of Coldwell Banker in Colorado.

In June, 68 single-family homes sold for $1 million or more, a 19.3 percent improvement in June 2009. And that is a 48 percent improvement from the 46 homes in the Denver area that closed in May.

The original asking price for a seven-figure home that closed in June was $1.9 million. But by the time the home closed, it had fallen 15.7 percent to $1.63 million. Still, that was better than the 23 percent drop from the original listing price of $2.1 million to the sale of $1.6 million in June 2009.

Of course, the original listing price may under-state the hit some homes are taking. For example, a 6,677-square-foot home in Castle Pines Village last month sold for $1.575 million. Its original asking price was $2.085 million. But public records show that in March 2008 the buyers paid $2.3 million for the home.

“I think we all feel like we survived 2009. Now, things feel like they are much better,” said Dee Chirafisi, a co-owner of Kentwood City Properties, and one of the top brokers in the Denver area.

Lion’s share of activity below $300,000

Bauer’s data shows that of the 16,149 closings in the first half of the year, there were 4,943 sales in the $100,000 to $200,000 range and 4,923 in the $200,000 to $300,000 range. Combined, the 9,866 sales from $100,000 to $300,000, accounted for 61 percent of the market. By far, the next biggest price strata were the 3,867 homes that sold between $300,000 and $500,000.

“A lot of that is from the tax-credits,” of $8,000 for first-time home buyers $6,500 for qualified current owners, Chirafisi said. “Because they extended the time to close those tax-credit homes to the end of September, those homes will also be reflected in July, August and part of September.”

In her office, she said showings of expensive homes are up 20 percent to 25 percent since the beginning of the year.

And she said many of the people looking are serious buyers.

“I think people looking at the higher end have seen prices adjusted enough that they figure it is a smart-time to buy,” Chirafisi said. “A year ago, sellers were pretty steadfast in their prices.”

She also said there is more financing available for high-end homes today than there was a a year ago. “There are more jumbo loans out there, and the interest rates are much lower,” she said.

Nina O’Kelley, a broker at Kentwood City Properties, put one home in the Morgan Historic District in Denver on the market on June 8 and she placed it under contract on July 2. The home was priced at $2.44 million.

She can’t say what the sales price was until it closes. The closing is scheduled for August.

“There was some give and take as there always was, but it was close to the asking price,” Kelley said.

She said there is a limited supply of homes in markets such as Country Club and Morgan Hill, so they might buck the overall trend for the entire market, a bit. “There are so few of those available, that you often have to act quickly to the get house of your dreams.”

Still, she said there is no doubt there are more well-heeled buyers shopping and buying expensive homes now than a year ago.

When stocks are down, even the rich don’t buy homes

“I think a year ago, people were looking at their stock portfolios, which were greatly diminished and they decided they really did not have the funds available to make a big purchase,” she said. “I think what is happening today is a reflection, in part, of a stronger stock market.”

And that’s why Jason Miller, of Milan Realty, doesn’t put too much stock in comparing today’s luxury housing market to a 2009 market.

“I would not read too much into the year-over-year sold numbers for June 2010,” Miller said in an e-mail. “In 2009, homes that closed in June most likely went under contract in April-/May 2009 when the stock market was still down 60 percent from the highs. Buyers in the 1 million-plus range tend to be more susceptible to the “Wealth Effect”. If you compare to 2008-2007, June 2010′s numbers are most likely way down.”

Also, if you look at average prices in those lofty prices, and use a three-month average price, and then break the sales into smaller subsets by prices, there will be so few homes in each category, that the numbers can easily be skewed by a handful of large sales.

Miller said he expects fewer sales this year than last year.

“Not a good sign for a recovery,” he said. “Active listings are up 10 percent, year-over-year and sales are down 30 percent. Not a good combination.”

County	$100,000 and below	$100,000-$300,000	$300,000 and above	Total
Adams	318	2,056	246	2,620
Arapahoe	146	2,112	754	3,012
Boulder	16	650	1,001	1,667
Broomfield	Zero	176	168	344
Denver	338	2,010	1,130	3,478
Douglas	1	996	1,115	2,112
Elbert	10	87	68	165
Jefferson	41	1,779	931	2,751
Total	870	9,866	5,413	16,149

Note: There is a poll embedded within this post, please visit the site to participate in this post's poll.

Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865.

Architectural tour on tap

John Rebchook — Sun, 30 May 2010 21:45:40 +0000

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Dee Chirafisi and Mary Rae, top brokers at the Kentwood City Properties, are sponsoring The Legacy of Jacques Benedict, an lecture followed by a bus tour of Benedict’s historic buildings on Tuesday and Wednesday, June 8-9, at the Denver Botanic Gardens. The lecture on June 8th will run from 6:00 to 7:30 p.m. at 1005 York St. The bus tour on June 9th is scheduled from 6:00 to 7:30 p.m.

Seating is limited and reservations are required, so for more information and to register, please call Gail Breece at 303-355-2460, Ext. 201. The lecture and bus tour are organized by the Rocky Mountain Chapter of the Institute of Classical Architecture & Classical America, a national nonprofit organization dedicated to advancing the classical tradition in architecture, urbanism and allied arts. Chirafisi, the co-owner of Kentwood City Properties, and Rae are members of the organization. For more information, www.classicist.org.

The registration fee for ICA&CA members is $50 for both the home bus tour and lecture, or $30 for the event of your choice. The fee for non-members is $60 for both events or $40 for the tour or lecture.

McPhee providing personal insights

The lecture portion of The Legacy of Jacques Benedict event will feature Mike McPhee, Benedict’s grandson and member of a team of Denver Post reporters who garnered the Pulitzer Prize for their coverage of the Columbine massacre. McPhee will share intimate stories about the Benedict family and provide insights about Benedict’s historic Denver buildings. Benedict is one of Colorado’s most prominent architects. Benedict’s body of work encompassing a wide variety of well-known landmarks and buildings is listed on the National Register of Historic Places.

Born in Chicago in 1879, Benedict studied architecture at the Ecole des Beaux-Arts. He came to Denver in 1909 and became renowned for his many prominent works, including homes, churches, academic and public buildings spanning a range of architectural styles. Benedict had a particular gift for melding with natural landscapes.

For more information on the home tour and lecture, contact Mary Rae at 303-916-9163, email maryrae@kentwoodcity.com, or Dee Chirafisi at 303-881-6312, email deec@kentwoodcity.com.

Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865

Cableland hitting the market

John Rebchook — Wed, 19 May 2010 22:53:27 +0000

Cableland, one of the biggest, brashest and most unique homes in Denver, is hitting the sales block. Mayor John Hickenlooper and Linda Childears, president and CEO of the Daniels Fund, today announced an agreement to sell Cableland and donate the proceeds to the Denver Scholarship Foundation.

The home was built in 1986 and 1987 by Bill Daniels, a cable-TV pioneer. Daniels bought adjoining homes, tore them down and built the 19,500-square-foot main mansion – with 24,000-square-foot when the enclosed patio is included – of the estate at 4150 Shangri La Drive, near South Colorado Boulevard and Alameda Avenue. Daniels completed his version of urban redevelopment long before the phrase ”scrape off” crept into the real estate lexicon. A dozen years ago, when his health was failing, Daniels donated Cableland to serve as the mayor of Denver’s residence (if the mayor wanted to live there) and and to be used for fund-raisers. More than $12 million has been raised for charities and non-profits at Cableland. Neither Hickenlooper, nor his predecessor, Wellington Webb, used the estate as their main home. Although Daniels was a lifelong Republican, and he knew that the mayor of Denver was surely going to be a Democrat, he didn’t care. He wanted the ”House that Bill Built” to serve as a legacy long after he was gone. Daniels, who was born in Greeley, died in March 2000 at the age of 79.

Unique opportunity

“Cableland has provided an attractive venue for many gatherings in our city and is a favorite location for local charity events,”Hickenlooper said. “Today, we have a unique opportunity to invest in our future generations. We are pleased to partner with the Daniels Fund and the Denver Scholarship Foundation to provide greater access to college scholarships for Denver’s students.”

Daniels donated Cableland to the city in 1998 to serve as the mayor’s official residence and be utilized for certain civic and charitable purposes. An agreement at the time stated the property would revert to the Daniels Fund should it no longer serve the needs of the city.

Childears, the president and CEO of the Daniels Fund, said Bill Daniels was pleased to donate Cableland as the mayor’s residence and he ”would have been delighted that it has been home to major events, especially those that helped raise money for charitable purposes. With the economic downturn and the rising cost of higher education, affording the cost of college is increasingly difficult for many students. After careful consideration, our board decided that converting the value of the property into scholarships for students in Denver made perfect sense.”

Not a snap decision

The city and the Daniels Fund began meeting nearly two years ago to discuss the potential sale of the home after agreeing that Cableland could be put to a better use to further Bill Daniels’ philanthropic wishes. The board of the Daniels Fund agreed that money from the sale of Cableland must go to the Denver Scholarship Foundation for use by eligible students who want to attend designated Colorado institutions of higher learning.

Today’s announcement is the first in a number of steps required before the sale can move forward. The agreement to sell must be reviewed and approved by the Denver City Council and an appraisal must be completed. The Daniels Fund and City Council must also approve any offer to buy the home.

$5 million home?

Jan Nelsen, a top broker and co-owner of Kentwood City Properties, estimated the home would fetch in the neighborhood of $5 million. The home has 14-bathrooms, four bedrooms and 88 TV sets – including 64 of them on a “viewing wall,” a fitting feature for a cable TV guru. The home inclues a 44,000-gallon, 1,102-square-foot swiming pool, staff quarters, a laser security system, an indoor resistance exercise pool, an ice crean bar and even a 12-foot fireman’s pole.

“Wow! I love that house,” Nelsen said. “I’m guessing it’s going to be listed at more than $5 million, but I think it would be a nice $5 million house. I’m not sure how dated it is. The buyer might spend a lot of money upgrading it. I think the buyer might be some CEO of a company that does a lot of entertaining.”

The home is one of the biggest in Denver, although homes that size are not uncommon in Cherry Hills, she noted. The historic Phipps mansion, which Tim Gill and his partner recently agreed to buy from the University of Denver, has 33,123 square feet, and sits on 6.5 acres. The Phipps estate was priced at $9.2 million. An agent has been chosen to list Cableland, but the name has not been released as details are still being worked out, according to Hickenlooper’s office.

Dee Chirafisi, co-owner of Kentwood City Properties, said Cableland will be a difficult one to price.

“It is such a unique property and unique location,” Chirafisi said. ”I think the buyer could be just about anyone. When someone asked me that questions about the Phipps Mansion I thought a foundation would have purchased it and it ended up being a couple who will use it as their primary home. So it could be a foundation, organization or a couple or a family …I do know that it will be someone who is looking for a one-of- a- kind, found-no-where-else, property.”

About $12 million has been raied in funderaisers at Cableland.

The city intends to designate another property in Denver as the mayor’s official residence. No decisions have been made.

The Denver Scholarship Foundation was founded in 2006 to provide college advice and scholarships for low-income Denver Public Schools students. To date, DSF has given away 1,658 scholarships totaling $5.2 million and helped to increase the number of DPS graduates enrolling in college by 52 percent.

Cableland was built by Bill Daniels, a Cable-TV pioneer. Although a life-long Republican, Daniels donated his massive home to the mayor of Denver, who almost sure to be a Democrat. But Daniels cared more about the community and education than he did about political labels.

“The Denver Scholarship Foundation is thrilled that the proceeds of the eventual sale will help Denver students achieve their college goals,” said Cindy Abramson, executive director of the Denver Scholarship Foundation. “Today’s announcement is just the first step in a long process, but we are delighted to know that even more young people in Denver will receive the financial support they need to attend college,”

Mayor John Hickenlooper, Cindy Abramson, and Linda Childears at Cableland.

Dee's surprise soiree a success

John Rebchook — Mon, 22 Mar 2010 18:47:28 +0000

Dee "almost-50" received the surprise of her life on Sunday night.

Well played, Margaret Jackson!

Well played, Jim Theye!

Jackson, the real estate reporter for the Denver Post, and Theye, Dee Chirafisi’s husband and c0-owner of Kentwood City Properties, conspired to throw a surprise birthday bash for Dee’s upcoming 50th on Sunday night. (For an earlier blog about Dee’s birthday, please visit this blog.) About 70 people – including developers Susan Powers and Jerry Glick, and the Post’s Penny Parker and Westword’s Patricia Calhoun, attended the surprise party in the basement of TAG restaurant, 1441 Larimer St.

Sneaky friend, husband

This is how the caper went down.

About a month ago, Jackson, in league with Theye, suggested to Dee that they have dinner together before Dee turns 50 on March 28. Dee suggested they turn it into a “spa day,” so they pampered themselves with massages and manicures at the Ritz Carlton Denver, as well stopping for a couple of glasses of wines at Vita Restaurant, 1575 Boulder St., in the Highland neighborhood, before taking the elevator down to TAG’s basement.

Before they arrived, a number of people wondered if they could pull it off, because so many people were in on the secret.

Clearly, by the stunned expression on her face, as well as the tears running down her cheeks, everyone know that she had not suspected a thing.

They pulled it off, even though Dee noted that she had probably been in contact within every single person in the room in the past week or so.

History may repeat itself for the Aries in 2060.

“I hope to see you all again at my 100th birthday,” Dee said.

Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865.

Mary Rae and Dee share more than birthday

John Rebchook — Sat, 13 Mar 2010 04:27:37 +0000

Mary Rae gave Dee Chirafisi her start in real estate. Now, Mary Rae works for Dee's company, Kentwood City Properties.

Watch Dee and Mary Rae: Dee and Mary Rae Video

When Dee Chirafisi decided she would dip her toe into the world of real estate in 1993, she interviewed with a number of brokerage companies.

During her interview with Mary Rae, who already had more than 20 years in the business and was one of the top Realtors in the Denver area, Mary asked her the date of her birthday.

“March 28th,” Dee answered.

“That’s my birthday, too,” Mary Rae responded.

“I think that is why she hired me,” Dee, who was last year’s top broker and is the co-owner of Kentwood City Properties, said, while the two met at a $799,000 condo at 1411 Wynkoop St., which Dee is listing. In fact, Dee said that if someone like her – with a freshly minted real estate license, and a plan to work part-time - came to her for a job today, she wouldn’t hire her. (For the record, Dee only worked part time for one month, before she realized it was a full-time calling.)

After selling her namesake firm, Mary Rae joined Kentwood City Properties about a dozen years ago.

Mary Rae, Dee back together

It’s never been awkward working for her former employee.

“I just revel in Dee’s successes,” said Mary Rae.

And they share more than a birthday, separated by 20 years. (Dee turns 50, while Mary Rae is turning 70.)

Despite the stereotype of women never admitting their ages, neither have any problem about being upfront about how many candles to place on their cake.

“Everyone knows, anyway,” said Dee, an avid runner.

“I only think about my age once a year,” Mary Rae said. “I don’t feel like I’m 70.”

Passion for real estate

And they both frequently use the word “passion” to discuss their profession. They both still get excited about finding the right person for the home, and when listing a home, helping sellers get the highest price, despite a market that is as challenging as this one.

Challenging. Now that’s an understatement.

Mary Rae says that last year was the toughest she has seen since she left the oil business as a “Girl Friday” to two wildcatters, to “join this crazy world of real estate,” in 1973. She was drawn to the business to save a historic home, and was told that a good way she could do that was to become a Realtor. Two years later, she started her own firm.

“I thought the ’80s was a real humdoozle,” Mary Rae said, while enjoying the sun on a recent balmy Friday. “But last year was something else. There was no one who wasn’t impacted by the economy last year. In some ways, I think that brought people closer; we all shared in the pain. No one was left untouched. It seems like it is a baptism of fire every decade.”

Dee said the market is showing more life this year than last, as especially at the high-end.

“The toughest thing of selling a unit like this one, is getting financing,” Dee said. “I just came back from meeting with (a major lender) to try to find ways to try to help buyers. It’s especially hard because this building is 80 percent commercial, and there are new rules making it tougher to get loans on a mixed-use project like this one. Of course, that was not an issue when they started developing it.”

So far, 13 of the 22 units have been sold, with buyers ranging from a couple of single professionals, a real estate developer with a 9-year-old, a doctor, and a couple with a home in Summit County, who use their condo when they come downtown. Coincidentally, two people who previously were neighbors in Country Club sold their big homes to move to the development along Cherry Creek and a short walk from the Pepsi Center and the Denver Performing Arts Center, but didn’t know they had bought in the same building until they met at a mixer for the new residents.

As far as Mary Rae working for her former employee, there has never been any awkwardness.

“I revel in Dee’s success,” Mary Rae said.

Realtors more important than ever

Dee said that the biggest change she has seen since she began her career was the advent and reliance of technology.

“But I actually think we’re going to see some backlash to technology,” Dee said. “People think that they have so much information at their fingertips that they don’t need brokers anymore. Then they find out that the information they find on the Internet is often two months out of date. Or, they have so much information they are just overwhelmed, and they need someone to help them make sense of it.”

Mary Rae couldn’t agree more.

“I don’t think that Realtors are going away; if anything, I think we’re going to be more important than ever,” Mary Rae said.

For an earlier Q&A with Dee, please visit this link.

These two top brokers at Kentwood City Properties both were born on March 28, - 20 years apart. They're shown in a condo Dee is listing at 1411 Wynkoop St.

Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865.

Spring home sales likely to surge

John Rebchook — Tue, 09 Feb 2010 22:23:33 +0000

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The Denver-area home market in January, while it did not book shoot-the-lights-out activity, appears to have set the stage for a much stronger spring season, as consumers are expected to take advantage of tax credit that are expiring, and lock in low mortgage rates, widely expected to shoot up in the coming months.

The average and median prices of homes sold last month showed double-digit increases from the anemic levels of January 2009, shows the report based on Metrolist data by independent broker Gary Bauer. And while the number of homes placed under contracts rose 21.9 percent from December, that is actually rather tame compared to the usual seasonal increase from December. For example, from 2005 to 2006, before the market hit the skids, the month-to-month increase was 43 percent. And even in January 2007, under contracts rose 29 percent from December 2006.

January not that bad

Still, it wasn’t a bad month for the overall market.

“I think January started out pretty good,” said Bauer. “We had that big let down in December, after people got the news that the tax credits were going to be extended. The January numbers show that Denver is a market on to itself. People are out there buying in all price ranges.”

By the numbers, here ares some of the highlights:

There were 3,690 homes placed under contract in January, a 21.9 percent increase from the 3,028 in December, but a 3.7 percent drop from the 3,831 in January 2009.
There were 2,353 closings, down 20.5 percent from 2,959 in December and down 4.7 percent from 2,469 in January 2009. There were 17,785 unsold homes on the market, down 9.9 percent from the 19,748 in January 2009, but 8.1 percent more than the 16,456 in December.

Average price up

The average price of a single-family home rose 12.8 percent from January 2009 to $260,530 from $230,878 in January 2009, but was down 7.5 percent from $281,756 in December. The median price of a single-family home at $210,000, was 15.7 percent higher than $181,500 in Janaury 2009, but down almost 5 percent from $221,000 in December. The average price of a condo was $157,701, up 6 percent from $148,509 a year earlier, but down about 1.7 percent from December’s overall price of closed condos of $160,399. The median price of a condo rose 15.5 percent to $130,500 from $113,000 in January 2009, but was down slightly from $131,000 in December.

Kentwood rocks

At least one brokerage, however, far out-paced the averages. At the three Kentwood offices, overall activity is up 57 percent in January from January 2009, noted Dee Chirafisi, co-owner of Kentwood City Properties. Also in the Kentwood family: Kentwood at Cherry Creek and Kentwood DTC.

“To sum it all up, I personally feel this year started out much better than last year,” said Tom Cryer, a broker at Kentwood-DTC. “I think we are looking at more of a normal normal. I have to believe that last year was abnormal. We lost something like 20 percent to 25 percent in transactions last year, and I do not believe Denver as an overall market was inflated by 25 percent.”

John Lucero, principal of the Denver-based Lucero Financial Group, is bullish about the Denver market.

“The market has opened up; it is huge,” Lucero said. “The market seems to be night and day from where it was even 60 days ago. I am seeing multiple offers on properties again; the phone is ringing off the hook. Investors are as hungry as heck right now.”

Short sales tough

The only troubling sign he sees is banks unwilling to take the market rate for short sales, he said. Instead, banks prefer to be paid insurance by Fannie Mae and Freddie Mac. The banks get more money, but the taxpayers have to make up the loss on what Fannie and Freddie pay, he said.

And he sees the market gaining steam in the spring, as buyers scramble to take advantage of the federal tax credits.

Consumers were surprisingly quiet in the first three weeks of the year, but activity increased a lot the last week in January, and has continued at a rapid pace ever since, said Chris Mygatt, president of Coldwell Banker Residential Colorado. Showings are way up, he said.

“A lot of it is being driven by the tax credits,” Mygatt said. Congress renewed the $8,000 tax credit for first-time buyers and offered a new $6,500 tax credit for some current homeowners.

“We had this pent-up demand that hit in November, but then the urgency was gone in December,” Mygatt said. ”Now, people need to have their home under contract by April 30 and close by June 30 to take advantage of them.”

Bauer noted that because of new closing rules regarding good faith estimates on the HUD-1 Settlement Statement that went into effect on Jan. 1, it could take another five to 10 days to close homes.

Mygatt agreed.

“I’m telling people to get their home under contract no later than the end of March, giving them 60 days to close,” Mygatt said. “It would be terrible to get your dream home under contract in time, but not be able to take advantage of the tax credits, because it took longer than expected to close. It’s more important than ever to start work with a reputable lender.”

Uncle Sam is expected to stop buying mortgage-backed securities by April 1, which leads many to believe that mortgage rate will rise to 6.5 percent or 7 percent. Not long ago, fixed-rate loans were available below 5 percent.

“We became spoiled with these super-low rates,” said David Simonson, a broker with RE/MAX Professionals. “But actually, any rate below 8 percent is considered a very good rate.”

He noted that rates are expected to start rising about the time that the tax credits go away. He said lenders may start raising rates gradually, so consumers don’t suffer “sticker shock,” when rates start to climb from their current levels. Rising rates may help some people get off the fence, he added.

He said just about everyone agrees rates will rise, the only question is by how much. But he said even if they do increase a couple of points over their current levels, it will not have that much impact on the buying public, but will put a damper on refinances.

Bauer is not so sure.

“Every time rates rise, a certain percentage of the population can’t afford to buy a home,” Bauer said. “And these low rates certainly allow people to buy more home than they could in the past.”

Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865.

Pinnacle tops $100 million in sales

John Rebchook — Fri, 05 Feb 2010 21:49:50 +0000

Buyers paid more than $33 million last year for 53 units at the Pinnacle.

The Pinnacle at City Park South last year bucked the trend of super-slow condo sales in the Denver area.

In 2009, buyers paid more than $33 million for units in the Pinnacle, arguably making it the best-selling condo project in the Denver area last year. (Peloton in Boulder actually sold more units, according to an analysis by Hanley Wood Market Intelligence. But the Boulder market is not a direct competitor with the Denver market.)

Since 2007, when sales started at the only high-rise condo project along City Park, buyers have paid about $101 million for 174 units for the two-building community in east Denver.

“Honestly, sales were down some in 2009 for us and everyone else,” said Herb Emmeran, of Chicago-based Equity Marketing, which is in charge of sales and marketing for the only high-rise project along City Park.

“But we probably did better than most,” Emmerman added. “In the good years, which started a few years back, sales were very strong. We continued to sell very well last year. ”

In 2008, 56 units sold for $37 million – only two more than in 2009, but for $4 million more. In other words, the average price of all units sold in 2008 was $660,714, while the average unit sold last year was $611,111.

While overall condo sales in the Denver area fell by 9 percent in 2009 from 2008, according to an analysis of Metrolist data by independent broker Gary Bauer, the Pinnacle’s sales activity was even more remarkable given its price points. In the $600,000 to $699,999 price range, condo closings in the overall metro area fell by 44 percent in 2009 from 2008. And for units priced above $2 million, closed sales volume fell by 80 percent. The Pinnacle has one remaining penthouse unit on the market. The asking price? $2.75 million for 4,646 square feet of unfinished space that spans two stories. The buyer might expect to pump another $1 million or so into finishing it.

Emmerman said the most significant difference between 2009 and previous years was the age of the buyer. “When we started, we had more empty nesters. In the early years, we sold a lot of larger homes in the tower and penthouses in the first tower.”

Last year, 35 percent of the sellers were less than 35-years-old and 46 percent of them had been renters. Empty nesters, many who previously hailed from Park Hill and other nearby neighborhoods, had trouble selling their single-family homes last year, he noted.

Meanwhile, first-time home buyers were invigorated by the $8,000 federal tax credit available to them. ”That helped us maintain our sales pace,” Emmerman said. Still, older home buyers were not totally out of the market. “Sixty five percent of our buyers were over the age of 35.” He said the extension of the first-time home buying tax credit, coupled with the new $6,500 tax credit for some existing owners, also should help sales in the Pinnacle during the first half of the year, before they expire.

While many may think that Pinnacle only has high-end units, condos are available starting at just under $300,000, with other units priced to $1.2 million.

Since “Day 1,” when the project kicked off about four years ago, the average price of a unit sold has been $370 per square foot, he said. “Our current contracts are averaging about $400 per square foot. We’re not the cheapest out there. But we provide views and a location that no one else can offer.”

And while they have cut the asking prices on some units, they have not slashed them, which has been the case at other projects, he said. He said they are still able to make a profit – not as much as they originally hoped, of course – but at the same time they aren’t destroying the value of the people who bought at the Pinnacle when the overall market was much stronger.

“We wanted to maintain the integrity of the project, while still being profitable,” he said. “We might help some buyers now a little bit more with upgrades.”

When the project, developed by Opus Northwest, first kicked off about four years ago on the site of the former Mercy Hospital, Emmerman said they weren’t sure how well it would be accepted.

“But it has never been an issue of being accepting it; everyone immediately loved it,” Emmerman said. “It’s been a great asset to the neighborhood. Everyone loves that you can just shoot up 17th and it is easy to get to downtown. It’s also an easy drive to I-70.

That’s exactly right, said Debbra Fagan, a broker with Fuller Sotheby’s International Realty. Fagan and her business partner, fellow Fuller broker Wendy Handler, have sold a number of units at the Pinnacle.

“Our clients who have moved into the Pinnacle just love it,” Fagan said. “They think it has a Manhattan-type view. It’s like living over Central Park. And you have everything downtown, all of the 17th Avenue restaurants, and all the new developments along Colfax, including the new Tattered Cover, which is just around the corner. And, of course, everyone loves having the park right there.”

She said most of the buyers at the Pinnacle also checked out some condo developments in downtown, as well as in nearby LoHi, because a number of those projects also offer fantastic views. She said few of her buyers at the Pinnacle looked at suburban projects, such as the Landmark. Typically, buyers at the Landmark are moving from big homes in Cherry Hills or Greenwood Village, and want to stay in that area.

But Dee Chirafisi, co-owner of Kentwood City Properties, said some clients have wanted to see everything out there, in the downtown area or along the southeast suburban corridor. In fact, she has found that very few of her buyers at the Pinnacle seriously considered more low-rise buildings in and around downtown.

“It’s a lifestyle change,” Chirafisi explained. “A lot of high-rise buyers want to see all of the high-rises and decide whether they want to be more urban or more suburban. They want the lock-and-leave lifestyle, and all the amenities, such as the pool and workout rooms. And with light rail, people who buy at places like the Landmark can quickly and easily get downtown.”

That said, she said no one she has put into the Pinnacle has regretted it.

“It’s a great building,” Chirafisi said. “It’s very well constructed and has a developer with a great reputation behind it. People love the location, especially now with all of the great things happening along Colfax. And those views are just unbelievable and one-of-a-kind.”

Hanley Wood Market Intelligence ranked top condo closings last year by a variety of measures, at the request of InsideRealEstateNews.com. It gathered information from developers and public records.

Dee featured in Husted's Bar & Grilled

John Rebchook — Thu, 21 Jan 2010 14:22:34 +0000

Dee Chirafisi, unusually all-dolled up, for a Union Station soiree last summer. She seldom wears dresses, or makeup, preferring to hit the road for a run in the morning.

Dee Chirafisi, co-owner of Kentwood City Properties, was featured today in Bill Husted’s Bar & Grilled feature in the Lifestyle section of today’s Denver Post. Husted’s question and answer feature, as always, was a fun and interesting read.

Dee, among other things, talked about real estate, relationships, and running. (I actually read it this morning before I went out on my run.) For the entire article, I encourage you to go to this link. Dee also was featured in a Q&A in this blog at InsideRealEstateNews.com, where she discussed the real estate market in-depth.

Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865.

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