Today we visit Lakewood and the Berkeley section of Denver where two economy motel properties hit the market on the same date. The Sky Blue motel includes 23 rooms across 11,225 square feet and is located at 6203-6205 W Colfax Ave in Lakewood. On 8/26, the motel was listed for sale at an undisclosed price.
Built in 1937, the last name the motel changed hands was in 2014 for $900,000 and in 2008 for $680,000.
With all of the redevelopment we've seen in Lakewood and especially along W Colfax Avenue over the past couple years, we suspect this motel site could be a redevelopment opportunity. The site is currently zoned M-G-U (Mixed Use - General - Urban), which permits a wide variety of uses including retail, multifamily and entertainment facilities. Considering the property is a corner site, we think the most likely redevelopment use would consist of a mixed-use building with ground floor retail and multifamily apartments above, similar to the 40 west Apartments at 5830 W Colfax Ave we saw get constructed in 2017.
The North Valley Motel includes 21 rooms across 36,850 square feet and is located at 6231 Federal Blvd in the Berkley section of the city.
On 8/26 the motel hit the market for $1,750,000, or $83,400 per room.
The motel first opened its doors in 1954 and has been sold a few times since then, once in 1991 for $170,000 then again in 2006 for $630,000.
Considering there's been less redevelopment in the immediate area, we don't see this motel being a potential development site, however, there does appear to be opportunity to upgrade each of the rooms to provide a better guest experience.
Photos & information provided by:
Blue Sky Motel - Wan Lim (303) 502-7333, Scott Whittfield (303) 919-7667, Paul Hanson (303) 889-9062
North Valley Motel - Simon Kim (720) 477-1264