Updated 2 months ago on .
11-Unit Downtown Multifamily | Strong Cash Flow | Development Upside
122 E 1st Street | Cortez, Colorado
“Adobes on Ash”
Adobes on Ash represents a rare opportunity to acquire a historic 11-unit multifamily property in the heart of downtown Cortez, just one block off Main Street. Known as the first multifamily building constructed in Cortez, this property offers a proven history of tenant stability, consistent income, and long-term appreciation potential.
With a 6.67% cap rate, this asset provides reliable cash flow while also offering meaningful upside through future development and expansion. The property’s central location supports strong tenant demand, with walkable access to shops, restaurants, parks, and employment.
Zoning & Development Potential
The property is zoned Central Business District, with its current residential use grandfathered in. According to Town of Cortez Planning, the site allows for:
- 100% lot coverage
- Potential to add commercial and/or residential units along the north alley
- Second-story additions (buyer to verify)
- Possible grants and incentives encouraging alley-activated commercial development
These factors create optionality for investors seeking value-add or long-term redevelopment opportunities.
Market & Location Overview
Cortez is a thriving Southwest Colorado community with a population of approximately 9,000, serving as the county seat of Montezuma County (population ~27,000). The area continues to experience steady population and economic growth, driven by affordability, lifestyle appeal, and access to public lands.
Approximately 76% of Montezuma County is publicly owned by the BLM and U.S. Forest Service, supporting year-round recreation including hiking, biking, fishing, off-roading, and winter sports. The property is located just 10 miles from Mesa Verde National Park, a UNESCO World Heritage Site and major regional draw.
Investment Highlights
- 11-unit multifamily property
- Historic asset with strong tenant stability
- 6.67% cap rate
- Downtown Cortez location, one block off Main Street
- Central Business District zoning
- Additional development and expansion potential
- Walkable, in-demand tenant location
- Extremely low rental vacancy rate (1.4% per recent city housing study)
- Fiber internet available if desired
This property offers a compelling blend of stable income today and strategic upside for tomorrow, making it a strong addition to any multifamily or mixed-use investment portfolio.
Whether you’re pursuing a long-term hold, value-add strategy, or portfolio diversification, 122 E 1st Street delivers dependable performance in a growing, undersupplied rental market.
Call today for more information!
Allison Klein 970-946-9409
