Even Air Space in Aspen is Expensive:

Aspen, Colorado:

Purchasing ‘air rights’ part of downtown penthouse landscape

by Carolyn Sackariason, Aspen Daily News Staff Writer

Buyer of most expensive per-square-foot condo paid more to ensure keeping view

Even Aspen’s air space is worth a hefty price in the lucrative world of real estate.

The price on the record-breaking downtown penthouse sale that occurred last month was driven partly by the buyer purchasing the “air rights” above an adjacent building to ensure views of Aspen Mountain in perpetuity.

The sale of the 5,053-square-foot condo on top of the Muse building located at 625 E. Hyman Ave. for $15.8 million was the most expensive per-square-foot downtown penthouse ever sold. It pencils out to $3,126 a square foot.

“That is a record for a downtown penthouse for sure,” said Tim Estin, a residential real estate broker at Aspen Snowmass Sotheby’s Real Estate who writes a blog called Estin Report about Aspen homes and the market.

The Muse penthouse buyers bought the property from developer Nikos Hecht, who included the air rights above the building at 602 E. Cooper Ave., which is home to the Mezzaluna restaurant and is located south of the residential property. The penthouse’s rooftop deck is taller than the Mezzaluna building and has direct views of Aspen Mountain.

The deal for the air rights means that, in effect, no vertical development can occur on the Cooper Avenue property, which according to county assessor records is called Hunter Plaza. It is owned by downtown landlords Tony Mazza and Frank Woods who reportedly sold the air rights above their building to Hecht.

Craig Morris, the Sotheby’s International Realty broker who represented the buyer in the penthouse sale, said the deal also is known as buying a “view plane easement.” The dollar value of those air rights is not disclosed but Morris said it was “a lot,” and it was part of the purchase price. He also noted that it’s the first time he has seen or heard about such a deal.

City of Aspen community development director Chris Bendon said he has heard of buying an easement to a view plane but “it’s not common.”

It’s not just the air rights that contribute to the penthouse’s high price tag in terms of square footage — it’s also the size and layout.

“It’s a unique layout,” said Brandon Blocker, a Sotheby’s International Realty agent who also represented the buyer. “It’s 5,000 square feet all on one level and a deck … and they bought the air rights so their view can’t be blocked.”

It is a four-bedroom, four-and-a-half bathroom penthouse with a rooftop deck and pool.

Bigger is better

The Muse penthouse is one of a handful of residential units in the commercial core that is larger than what the city code allows for, which is a maximum of 2,500 square feet.

“It’s a very special and unique property; it’s almost one-of-a-kind,” Blocker said. “It’s really hard to find in the core because of the square footage.”

Jordan Curet/Aspen Daily News

The owner of this penthouse next to the Aspen Art Museum paid for a guaranteed view of Ajax because the building south of it cannot go higher.

Also a contributing factor is the fact that penthouses are no longer permitted in the commercial core as a result of legislation passed in 2012.

Before Aspen City Council passed that ordinance, several building owners submitted land-use applications that include the development, allowed by right, of up to 2,500-square-foot penthouses. These properties include the old Aspen Athletic Club, Charles Cunniffe Architects offices, the Garfield & Hecht law office, Zocalito and the Red Onion annex.

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