This Class A Office Building built in LoDo in 1894, sits on the National Historic Registry. The interior motif of this 48,000 square foot office building has always been maintained to the high standards of its original construction. From top to bottom, the brick, flooring and ceilings have been meticulously reworked and updated.
The current landlord bought and remodeled the building, after its former restaurant tenant vacated the property. Three or four years ago, the existing tenant came in and remodeled more, and then sublet the additional space they were not using.
Decker Associates was asked to provide a detail-focused valuation that factored in all of the recent years' improvements. The remodeling both by landlord and tenant impacted the market value, which in turn, justified higher rents.
A year ago Kaiser Permanente contracted Decker Associates to appraise the 33,000 square foot Catherine Mullen Building located in the hospital district. This building designed by architect Temple Buell, served as the St. Joseph Hospital nursing school and dormitory, before being converted into general office space in 1970. With facilities right across the street, Kaiser Permanente wanted to convert the Mullen Building for additional, medical office space.
Our valuation measured the effect the historical easement had on the value. Historical easements prevent building owners from modifying the outside of the building, and exterior maintenance costs can be a huge detractor. At a point in time, all of the windows had to be replaced exactly the way they were originally constructed back in 1932, to the tune of $5,000 each for 116 windows. Although the building is latten with unique and costly architectural features, including intricate tile and ceiling work, the historical easement impacted the value of the property.