It took most of the year and a 33 percent haircut, but developer Mark Smith
has sold his penthouse unit in the heart of Riverfront Park that his company
developed in downtown Denver.
Smith, a principal of East West Partners, sold the ultra-modern, two-story
home in the Central Platte Valley, with about 4,000-square-feet and sweeping
views of Denver’s skyline and mountains for $2.3 million in October. He put the
home in the Park Place building that is next to the Millennium Bridge, on the
market early in the year for $3.45 million.
While the original asking price was closer to the $3 million or so he put
into it when he built it for himself a decade ago, Smith, who also is part of
one of the teams competing for the renovation of the nearby Denver Union
Station, was philosophical about selling it for a loss.
“I’m a realist,” Smith said. “I’m aware of the market. I’ve been there since
Day 1. I bought it to live in, not to maximize my profit.”

The staircase in the two-story penthouse sold by Mark
Smith is a focal point.

He notes that he also has a big home in Vail, where he spends a lot of his
time, and he no longer needed such a large home in downtown, especially now that
his kids are grown and out on their own.
The home, according to public records, was bought by Thomas Coleman and
Jennifer Engler.
Buyer get great deal
“I don’t know them, but I think they got a great deal, a fabulous deal,”
Smith said. “It is certainly far less than what I had in it – although that
doesn’t mean anything, other than I spent too much on it. Sometimes you make
money in real estate, sometimes you don’t. Would I like to have tripled my money
on it? Sure. That’s not the reality. I lived there for 10 years and had a great
time there. How do you put a price-tag on that?”
Kim Norton, a broker with Kentwood City Properties, who previously worked for
East West Partners and knows Riverfront like the back of her hand, represented
the buyers, who live in Silverthorne.
“We looked extensively at homes in Riverfront, LoDo and LoHi,” Norton said.
“It quickly became clear that because they are bringing their two children – the
four-legged children – they wanted to be closer to the park. And they wanted to
be able to walk to restaurants and sporting events.”
As soon as they walked into Smith’s crib, it felt right.
“They wanted a large project that they could really make their own,” Norton
said. “They wanted something very unique, very edgy, very contemporary. They
looked at some newer construction, but she said it felt too much like a suburban
home. Mark (Smith) really showed off his architectural flair. Everything in it
is custom and very sleek. Of course, the new owners will customize it to their
own tastes, and I can’t wait to see what they do.”
She said the deal was good for Smith, because he can put this behind him and
move on. “And, of course, the buyers think they got just an absolutely fantastic
deal.”
Deviree Vallejo, also a broker with Kentwood City Properties, used to live in
the nearby One Riverfront building that East West Partners also built.
Vallejo said Smith’s experience is par for the course in today’s market.
“It is kind of the status quo right now,” she said. “Mark, originally listing
it at $3.45 million, was setting the bar kind of high. It ultimately came down
to what a buyer was willing to pay. No one was willing to pay $3.45 million. One
of the problems with having the nicest place in a neighborhood is that there are
very few comparables.”
Buyers want to steal homes
Low-ball offers abound at the high end, which is frustrating for sellers, she
said.
“They say never buy the most expensive house on the block and you combine
that with everyone wants a deal right deal, so it is not surprising it sold for
33 percent less than the original listing price,” Vallejo said.
She said people shopping for high-end homes tend to be savvy business people
that are motivated by the mantra of buying low and selling high.
“It is tough, especially selling a home at the high end,” Vallejo said.
“Buyers are forcing the sellers to take big haircuts. The truly frustrating
thing is that owners are trying to sell homes at what they think is a
reasonable, market-rate price, and buyers come in offering 20 percent, 30
percent less – and they think it is a good offer. Really?”
She said she was listing one luxury home and the prospective buyer’s broker
told her that her client really liked the home, but getting a great deal trumped
buying his dream home.
“Jeez, if you’re going to live there, don’t you want to buy a place you are
going to love? Sure enough, he loved my listing but he ended up buying a
foreclosure that came on the market in Wash Park. He snapped it up, because it
was a great deal.”
As far as Smith, he also owns a piece of dirt bordered by 18th, 17th, Bassett
and Little Raven streets, in front of the Glass House, where he could build a
big, single-family detached home.
“I’m playing around with I want to do with that lot, if anything, at this
time,” Smith said. “I don’t have any specific plans. I did have some plans, but
I find my tastes are evolving. It’s such a unique site in the city – the only
house next to Commons Park – I want to make sure I am making the absolutely the
right choice before I pull the trigger.”
Also, East West Partners owns an adjoining parcel with Crescent Partners, so
he said he might see what is built on that site before moving forward on his
land.
“I’m renting downtown right now,” Smith said. “I’m taking a breather on
owning a place downtown for now.”