A Denver motel is up for grabs for the bargain price of just $10 – but there’s a huge catch that might make property investors think twice.
The city of Denver used $9 million in federal funds to buy the Stay Inn Motel in January 2023, with the goal of converting it into supportive housing for the homeless.
Now, the sprawling 96-room four-story building located 12033 East 38th Avenue, is looking for a new owner.
After sitting empty for a staggering 18 months since the city’s $9 million purchase, Denver is offering this property up for the price of an expensive latte.
But the jaw-dropping real estate opportunity sounds too good to be true for a reason.
The catch is that the lucky buyer must remain true to the mission of transforming the dilapidated motel into a homeless shelter.
According to the city’s request for proposals, the property must be turned into ‘supportive housing’ for the homeless, as reported by the Denver Post.
The deal comes with a binding 99-year commitment to keep it as income-restricted accommodation.
Denver’s housing spokesman Derek Woodbury explained the city’s decision to the outlet.
The city of Denver used $9 million in federal funds to buy the Stay Inn Motel in January 2023, with the goal of converting it into supportive housing for the homeless
After sitting empty for a staggering 18 months since the city’s $9 million purchase, Denver is offering this property up for just $10 – but the deal comes with a catch
‘We have explored various options for converting the property to supportive housing, and in the fall of 2024 we identified a possible ownership transfer as the best means for accomplishing this,’ he told The Denver Post.
Abandoned and neglected, the motel has been fenced off since August 2023, despite big promises made by former Mayor Michael Hancock and Congresswoman Diana DeGette back in May 2021.
The current Mayor Mike Johnston’s administration now admits the building did not complete the renovations that city officials said were necessary last year.
The building needs significant repairs, including ‘structural repairs to walkways and railings and electrical system repairs.’
Woodbury revealed they’ve done nothing more than ‘minor repairs to protect the asset’ – leaving the massive renovation burden on the shoulders of the new owner.
The deal would lock the owner into a 99-year commitment to provide housing exclusively for those earning up to 30 percent of the area median income.
This means the new owner is essentially signing up for a lifetime social housing project that will completely transform the property’s potential.
On top of that, the new owner won’t just inherit a building – they’ll also be responsible for rezoning the entire property.
The property must be turned into ‘supportive housing’ for the homeless. The deal comes with a binding 99-year commitment to keep it as income-restricted accommodation
The current Mayor Mike Johnston’s administration now admits the building did not complete the renovations that city officials said were necessary last year
City officials mysteriously failed to complete the rezoning process during previously scheduled hearings in August and September.
Woodbury told the outlet that Denver ‘would support anyone awarded this through the rezoning process.’
Potential buyers will not just inherit the building, but also a network of shed-like structures in the parking lot – part of a homeless micro-community.
The homeless micro-community is guaranteed to remain on the property for at least four years with potentially to be renewed for longer.
