Denver Mansion with Conversion
For Sale
Contact for pricing
1563 N Gaylord St, Denver, CO 80206
8,181 SF Denver mansion suitable for various uses.
Property Size8,181 SF
Price / SF$281.14
Days on Market1410
Property Features for 1563 N Gaylord St
General Information
Standard status
Active
Size
8,181 SF
Class
C
Total Parking Spaces
10
Property subtype
Office
Zoning
G-RO-3
Occupancy
100%
Lease Type
NNN
Building Details
Year Built
1914
Year Renovated
2000
Buildings
1
Stories
3
Tenancy
Single
Listing Agency:
Kin Commerical Real Estate
Listed By:
Katie Hummer · License #CO EI100005940
Source:
Crexi
Added: Sep 29, 2022
Changed: Aug 8
Last Checked: Jul 21 at 5:14AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Kin Commerical Real Estate
Investment Insights
Based on property information with market context.
This 8,181 square foot mansion, constructed in 1914, is located in central Denver. The property is not designated as a historic building. It is currently generating income through September 2026. The property's zoning, G-RO-3, allows for a 3-story development of residential or office spaces. The property is uniquely set up for single family home ownership, short-term rentals, a hostel, wellness offices, or a school. The location provides walking distance access to groceries, restaurants, bars, entertainment, and music venues. It is situated three blocks from the Denver Public Carla Madison Recreation Center and City Park, with convenient access to Downtown Denver. The property has potential for conversion into studio suites for a 10+ unit multi-family property and features six existing full bathrooms.
Key Highlights
- 8,181 SF mansion with 6 existing full bathrooms.
- Potential conversion into 10+ unit multi‑family property.
- Located in Central Denver, walking distance to amenities.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$119,868
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
5.21%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$2,397,360
$2.4M
Cap Rate 7%
$1,712,400
$1.7M
Cap Rate 9%
$1,331,867
$1.3M
Market Conditions
NOI Build-Up for 8,181 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$216.0K $26.40/SF
− Vacancy
−$56.2K −$6.86/SF
EGI
$159.8K $19.54/SF
− OpEx
−$40.0K −$4.88/SF
NOI
$119.9K $14.65/SF
Area
Denver, CO
Vacancy
26.00%
Lease Rate
$26.40 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$2,397,360
Cap Rate 7%
$1,712,400
Cap Rate 9%
$1,331,867
Alternative Uses
Best Use
Office B
$1.71M
$1.50M – $2.00M
NOI $119,868 @ 7.0% cap · market cap 5.21%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.60M
$2.28M – $3.04M
NOI $182,301 @ 7.0% cap · market cap 7.93%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
5,372
Businesses Nearby
Explore this area
Business Placement
Demographics for 80206, CO
26,108
Population
15,580
Households
1.7
Avg Household Size
38
Median Age
78%
College-Educated
97%
High-School Grad
2.5 sq mi
ZIP Area
10,443
Density / Sq Mi
$102,248
Median Household Income
$69,908
Median Earnings
$1,694
Median Rent
$892,200
Median Home Value
Market
Vacancy Rate% for Office in Denver, CO
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - 8,181 SF Denver mansion suitable for various uses.
Where is this office building located?
The property is located at 1563 N Gaylord St Denver, CO.
What is the asking price?
The asking price for this property is $2,300,000.
What are key features of this property?
This property features: 8,181 SF mansion with 6 existing full bathrooms.; Potential conversion into 10+ unit multi‑family property.; Located in Central Denver, walking distance to amenities.
