DENVER | Main Development Thread #7

[TakeFive]

X Denver - Five Points-related Side Pocket

X Phoenix 200 W Monroe St


Courtesy X Phoenix

I had the occasion recently to drop an Uber Pax at X Phoenix. He said he loved living there; great location. It has has 20 stories with 506 units.

It was after dark and I dropped him on the south side (short side in the image above) and then I turned north going along the apartments. After dark, it was an impressive view from the street from inside of my vehicle. On both sides you could look into the inside where there was neon art work displayed.

I also recently had the chance to drop off a Pax at Lennar's mid-town Muse apartments which is right on Central Ave (along with the light rail). it is has 4 stories with 367 units. There's a carve-out for a valet drop-off and also serves as move-in access. Even after dark there was two delivery vehicles inside but still enough room to get around them.

[Sam Hill]

X Denver closes private ‘club’ as company struggles in other cities

[rds70]

New bridge planned over Speer Boulevard as part of the Ball Arena Redevelopment project - Wynkoop Crossing:

[rds70]

The latest rendering of the proposed residential building at 1800 Sherman - 13 stories, 250 units, 1,900 square feet of retail, 154 feet in height:

[TakeFive]

Originally Posted by Sam Hill

X Denver closes private ‘club’ as company struggles in other cities

So construction at three different X sites - Phoenix, Houston and Tampa Bay - have all been halted. I didn't even know they had a 2nd - full block - project under construction in downtown Phoenix. I rarely go downtown in Phoenix; I'll work mid-town and Uptown though on occasion.

The Club seems like a separate issue; sounds like they had a separate operator for those - no clue.

I never knew where the money was coming from for X projects but I assumed they had an equity partner with boatloads of money. Did they pull the plug? Or was it their bank lenders?

The good news is that they completed what is being called XD2 or X Denver - Five Points. They're offering two months free rent on move-ins.

Postscript

Recently while listening to Bloomberg Business on my radio the host interviewed 'somebody' from the Private Equity world. They were talking about investing in bonds etc given rates were around 5% largely risk-free. He brought up the strategy of possibly investing in Real Estate development given that banks are generally on the sideline. So who knows....

[TakeFive]

Originally Posted by rds70

New bridge planned over Speer Boulevard as part of the Ball Arena Redevelopment project - Wynkoop Crossing:

Originally Posted by rds70

The latest rendering of the proposed residential building at 1800 Sherman - 13 stories, 250 units, 1,900 square feet of retail, 154 feet in height:

---------------------------------------

Hope For Equilibrium: Denver CRE Leaders Share Predictions For 2024
December 20, 2023 By Robert Davis, Bisnow Denver

2023 was a tumultuous year for commercial real estate in Denver. High interest rates combined with elevated construction costs caused many developers to pause their projects. Investors also seemed keen to sit on the sidelines and wait for better deals to emerge as transaction volumes across all asset classes declined.

But some experts expect Denver’s fortunes to reverse in 2024 and beyond as the market finds a new sense of equilibrium, according to Matthews Real Estate Services First Vice President David Treadwell.

Interesting read perhaps but not very enlightening IMO. It's as if they're trying hard to be optimistic and a couple of observations felt not accurate.

I wouldn't predict a bad year in 2024; I'd guess it will be one of ongoing challenges and adjustments.

------------------------------

I found the comments out of the Atlanta market to be more instructive. Somewhat like Denver they assumed the party would never end.

https://www.bisnow.com/atlanta/news/...th-2023-122186

And then Microsoft happened.

The tech giant announced in February that it was halting plans to develop a 90-acre corporate campus on Atlanta’s Westside, a project that sparked a redevelopment boom in the area when it was announced in 2021. The pullback has been concentrated in Atlanta’s technology sector... “Technology companies, until this economic slowdown, have been flush with cash,” Boyd said.

“When these guys are in cost-cutting mode, it has ripple effects.” Windsor Stevens Holdings Managing Member Rod Mullice... said the failure of Silicon Valley Bank has especially impacted Atlanta’s tech industry, cutting off a prominent source of funding. “The VC community is reeling right now,” Mullice said. “The startup community is in bad shape. We have a bunch of zombie technology companies.”

I'm not sure there's a clear view on where Denver's (etc) economy is now when it comes to growth versus contraction thinking especially of jobs.

[Curtis Park]

I go by this corner every day and have been wondering about the status of the redevelopment. The last I heard, Shear Adkins Rockmore was working on plans. Does anyone know what's up?
https://sararch.com/project/colfax-franklin/

[TakeFive]

BEST IN CLASS - 2024

One River North: Defining the Future of Real Estate
December 19, 2023 By Katie Rapone, editor -- Mile High CRE

In the heart of Denver’s vibrant RiNo neighborhood, a groundbreaking architectural project is taking shape that combines the principles of biophilia and the surrounding environment. One River North will provide a living space that promises not just a home but a deep connection with nature and well-being.

The architecturally distinctive project is being developed by The Max Collaborative, Uplands Real Estate Partners, Wynne Yasmer Real Estate and Zakhem Real Estate Group — built by Saunders Construction and designed by MAD Architects with operational architects the Davis Partnership.

Props to Mile High CRE for having anointed an editor. This article shows several "construction progress photos courtesy of The Max Collaborative" (too big for this page)

One River North -- 3930 Blake Street






Photos credit: Hyoung Chang/The Denver Post





Images courtesy One River North

One River North -- Where Nature & City Take Form

OPENING SPRING 2024 - and Now Leasing

Courtesy One River North

[TakeFive]

Good Question

Originally Posted by Curtis Park

I go by this corner every day and have been wondering about the status of the redevelopment. The last I heard, Shear Adkins Rockmore was working on plans. Does anyone know what's up?
https://sararch.com/project/colfax-franklin/

If the project was in limbo due to lack of available money that would be understandable. Whether the project is dead perhaps someone else knows?

IN THE NEWS

Denver-Area VC Funding Declined 52%, But Life Sciences, Aerospace Offer Hope For Rebound
January 3, 2024 Robert Davis, Bisnow Denver

The headline is the best description which would seem to benefit Boulder County the most. One piece worth noting is that VC funding last year was very good.

Biden administration announces $162 million to expand computer chip factories in Colorado and Oregon
Jan 04, 2024 -- AP piece via Denver7 News

WASHINGTON (AP) — President Joe Biden's administration is providing $162 million to Arizona high-tech manufacturer Microchip Technology to support the domestic production of computer chips. Thursday's funding announcement is the second tied to a 2022 law designed to revive U.S. semiconductor manufacturing. The incentives include $90 million to improve a plant in Colorado Springs, Colorado.... The investments would enable Microchip Technology Inc. to triple its domestic production and reduce its dependence on foreign factories.

This is good news for Colorado Springs of course.

Denver nears housing oversupply, potential pricing drop: report
Jan 3, 2024 By: Heather Willard -- KDVR

DENVER (KDVR) — The annual rental report by Zumper, a privately owned rental platform in North America, shows that some cities, including Denver, are nearing an oversupply of housing, and prices could drop because of that.

So more of a projection which has a good probability but how significant is a different question.

DATA AHEAD

U-Haul data: More people are moving to Colorado than most states
Jan 2, 2024 by: Maddie Rhodes -- KDVR

DENVER (KDVR) — New data released by U-Haul suggests more people are moving to Colorado than most other states, but it’s not to where you’d expect.

Every year, U-Haul tracks its truck transactions within the United States and Canada. The moving company traced over 2 million one-way U-Haul truck transactions this year. U-Haul notes that its report doesn’t “correlate directly to population or economic growth.” It can, however, offer insights into where movers are moving.

So where is everybody moving to?

Colorado is one of the top states people are moving to, but the majority of people aren’t moving to the city of Denver. Many are moving around the Denver metro area or to the mountains, according to U-Haul.

Colorado’s top growth city is Fort Collins.

NOTE: U-Haul would reflect moves by younger people along with those that prefer to move themselves and save the money. It doesn't include professional movers which would include corporate relocations for example.

https://kdvr.com/news/local/leaving-...-who-move-out/

(NEXSTAR) — While more than 264,000 people moved into Colorado last year, another 239,000 decided to pack their things and leave the state, according to new data from the U.S. Census Bureau.

That's a net gain of 25,000 for the whole state.

[laniroj]

Originally Posted by TakeFive

Images courtesy One River North

I love the reality of the Singapore rendering greenery vs the greenery our climate can support. Comical. Hopefully they do a bang up job on the greenery though. Still not really a fan of this building. The Colobrown coloring will never do it for me on any building and the 80's strip windows on the opposite side of this make me cringe. Nevertheless, I'm all for it and appreciate someone putting their creativity forward.

[midwestcowboy]

Originally Posted by laniroj

the 80's strip windows on the opposite side of this make me cringe. Nevertheless, I'm all for it and appreciate someone putting their creativity forward.

Was about to say the same thing. They should have continued the verticle, layered look all the way to the front. See here.

Pretty obvious VE from the floor-to-ceiling windows originally designed:

[rds70]

1901 Chestnut - 12 stories, 150 feet, 179 units, 14,000 square feet of retail, JNS Architects:

[rds70]

2nd and Clayton - 8 stories, 120 feet, 4,600 square feet of retail, 97,000 square feet of office, Tryba Architects:

[mr1138]

Originally Posted by rds70

2nd and Clayton - 8 stories, 120 feet, 4,600 square feet of retail, 97,000 square feet of office, Tryba Architects:

Is that an expanded patio for Cherry Cricket I see? It could be reserved for a tenant of the new building, but it appears to be a continuation of the patio on the side of CC.

[wong21fr]

Originally Posted by rds70

2nd and Clayton - 8 stories, 120 feet, 4,600 square feet of retail, 97,000 square feet of office, Tryba Architects:

Crap. There goes my tailor.

[wong21fr]

Originally Posted by rds70

1901 Chestnut - 12 stories, 150 feet, 179 units, 14,000 square feet of retail, JNS Architects:

Thanks for the rendering, rds. Love the amount of brick being used and the inset windows- solid infill building even given the size of what I assume is the parking podium along 19th.

One wish would be if the zoning height exception that was granted to the Shitty House parcel could be transferred here. Adding another 10 stories to this project would be nice.

[TakeFive]

Location, Location, Location

Originally Posted by rds70

2nd and Clayton - 8 stories, 120 feet, 4,600 square feet of retail, 97,000 square feet of office, Tryba Architects:

This is not breaking news but more confirming news as to how some areas can be Hot even while most areas are cold as today's weather in Denver.

Hedge Funds, Private Equity Made 2023 A Record Year For New York's Priciest Offices
January 9, 2024 By Ethan Rothstein, Deputy Managing Editor

More than a quarter of all office leasing activity in Manhattan last year had rents higher than $100 per SF, another data point showing that owners of trophy office buildings have increased their dominance over the market.

There were 196 office leases in Manhattan signed for $100 per SF or more last year, the most on record, according to JLL. The 5.6M SF of leases signed for at least triple-digit rents made up 26% of the market overall, which experienced one of its slowest years in recent memory.

[TakeFive]

I couldn't ignore today's State of the State

WORST COVERAGE -- Tony Gorman/Denverite

BEST COVERAGE

In State of the State, Gov. Polis calls for a Colorado with lower taxes, denser housing and more trains
January 11, 2024 By By Bente Birkeland and Paolo Zialcita

After thoroughly enjoying reading this article I recalled reading another piece by Bente Birkeland that also impressed me - so I couldn't resist checking out her Bio.

In 2017, Bente was named Colorado Journalist of the Year by the Society of Professional Journalists (SPJ), and she was awarded with a National Investigative Reporting Award by SPJ a year later. She also won an Edward R. Murrow Award in 2015 for her work on KRCC’s series on the Southwest Chief, “Railroad West.”

Throughout her career, Bente has been honored with various accolades from the Colorado Broadcaster’s Association, the Association of Statehouse Reporter and Editors, the Third Coast International Audio Festival, the U.S. Department of Justice, the Mortar Board National Honorary Society and the Omicron Delta Epsilon International Economics Honorary Society.

I can't tell you how refreshing it is to read the work of a true Professional.

I could have fun critiquing Polis' half-baked ideas; maybe another time.

[BG918]

Originally Posted by rds70

1901 Chestnut - 12 stories, 150 feet, 179 units, 14,000 square feet of retail, JNS Architects:

The last empty parcel in DUS. End of an era

[rds70]

Hanover Alameda Station - 301 S Cherokee - Former Upsher-Smith site (January 19, 2024 submission):

Two buildings with 401 units - 14 stories/155 feet, 7 stories/85 feet, 8,000 square feet of retail, W Partnership Architects and Design Collective: