DENVER | Main Development Thread #7

[DenvertoLA]

It's pretty crazy that one developer is building 1,000 condos and every other developer is building 0. I hope they make a miniature model and place it in the sales center. Miniatures are amazing.

[TakeFive]

Just going from memory; too lazy to double check

Originally Posted by mr1138

If I recall correctly, wasn't part of the problem for many years that RTD actually had to change its bylaws in order to allow the sale of these parking lots?

A) Seems I read just recently that RTD had been required to sell any land at fair market value. That has now been changed allowing RTD to sell their Five Points land at a lower price to enable an affordable housing project.

B) PLANSIT has stated in the past that for suburban park-n-rides that those spaces were required by the FTA. I assume that means they would have to give their permission for changes. If the feasibility of project was based on having park-n-rides that could be a challenge.

C) In some cases RTD bought ROW before they had made final determination for siting stations etc.

D) It turns out that RTD sometimes ended up with more land than necessary. That occurred as RTD bought up ROW like a whole parcel/site from the previous owner. Sellers were NOT interested in selling all but a sliver here or there of their land.

Denver’s train network was built for car commuters. With parking lots empty, RTD thinks housing could help save it

During RTD’s rail-building era, it went all in on drivers and their cars.

I hesitate to rag on Nathaniel Minor too much; he's a good writer and he does know Denver's transit history. But he just can't resist going into anti-car mode. That headline is misleading while oddly also being generally true.

A) None of our esteemed transit fans ever want or are willing to talk about "First- and Last-Mile" problems. Fact is it's one of the more critical things impacting ridership.

B) FasTracks was built as a suburb to city mostly spoke and wheel system. Yes, "car commuters" interested in the convenience of light rail needed their 'first mile issue' addressed which park-n-rides do.

C) Prior to FasTacks there was the SW corridor line and later the SE corridor line. With the SW Line ridership projections were smashed out-of-the gate and parking spaces were taken by 8 AM at the latest at the Mineral Station with parking overflowing into the neighborhoods. Use of park-n-rides was also impressive along the SE rail lines, notably Nine Mile Station and Lincoln Station.

With respect to First- and Last-Mile issues

According to Transit Guru Jarrett Walker/Human Transit

basics: walking distance to transit

If you have to choose a single walking distance standard for all situations, the most commonly cited standard is 400m or 1/4 mi.

[laniroj]

Originally Posted by rds70

Latest concept plan submission for 1800 Welton - Amacon phase 2:

Two 39 story towers, 613 residential units, 91 hotel rooms, 10,000 square feet of retail, 423 feet in height:

Thanks for posting RDS. I'm excited for these projects, I really am, but for the life of me I cannot understand why these are such bland/boring aesthetics compared to their other stuff in Canada. My determination is that Denver just has bland/boring architects who don't know how to make this scale/size of building look good. Other may disagree, but that's my take. I wish these larger projects would use true high rise architects with experience, which is definitely not the local architecture crowd.

[TakeFive]

To date I have given Mayor Mike high marks

But with respect to my Five Votes he's now pushing his luck.

Denver mayor proposes sales tax increase to expand affordable housing
Jul 08, 2024 By: Brandon Richard -- 7Denver News

DENVER — November’s ballot is getting longer and taxes could be getting higher. On Monday, Denver Mayor Mike Johnston announced a new ballot proposal that would increase the city’s sales tax by 0.5% to provide more affordable housing.

He said it would bring in $100 million per year, helping the city provide 44,000 housing units over the next decade.

It sounds nice but I'd have many concerns; for starters I don't want to lose focus on the homeless etc problems. I'm also more specifically concerned with converting downtown office building to apartments but that's still in the early planning stages.

My early feelings is that it's (way) too big and I wouldn't be in favor of a 'forever' tax.

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With respect to adding apartments at RTD’s Central Park park-and-ride

I was curious about this:

The Regional Transportation District board of directors will vote next week on whether to go into exclusive negotiations with the Ulysses Development Group, which has proposed building more than 800 units of affordable housing on top of part of the underused Central Park park-and-ride.

I was curious about who Ulysses Development Group is. Their focus is on Workforce Housing which sounds fine. They have a rather thin resume of completed projects to date. I do like the complex they built in So Phoenix just west of 16th street. It's called Salt River Flats.

[Fritzdude]

[QUOTE=rds70;10238800]Latest concept plan submission for 1800 Welton - Amacon phase 2:

Two 39 story towers, 613 residential units, 91 hotel rooms, 10,000 square feet of retail, 423 feet in height:



/QUOTE]

When is this expected to start construction? 2025?

[TakeFive]

Celebrating the recent completion of two beautiful AA Office Buildings

Would you like to guess?



I'm sure this will help!


Images courtesy 1900 Lawrence

https://denvergazette.com/news/busin...752df1fc0.html

A 700,000-square-foot building downtown on 1900 Lawrence Street finished construction during the second quarter and was completely empty upon completion, the report said, leading to a spike in Class A office building vacancies. The building’s only pre-committed tenant isn’t expected to move into its space until 2025.

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RiNo’s Newest Destination Workplace Now Complete
May 31, 2024 By Katie Rapone, editor Mile High CRE

As tenants in 2024 raise their expectations for office space, emphasizing outdoor space, advanced technology, and premium amenities, Paradigm River North — a LEED-Gold, 188,000-square-foot Class AA office building in RiNo — is designed to meet every requirement.

Developers Jordon Perlmutter & Co. and Rockefeller Group have officially announced that construction is now complete. Located at 3400 Walnut Street, the office building recently completed an 80,000-square-foot pre-lease with the law firm Davis Graham & Stubbs LLP. The firm secured the top three floors of the eight-story building.

PARADIGM RIVER NORTH
3400 Walnut Street




Images courtesy Jordon Perlmutter & Co. and Rockefeller Group

Postscript: I sincerely hope the Perlmutter family does well with this investment. I had the opportunity of meeting and working on a deal with their Dad. Jordie was a 'salt of the earth' type person; he was very gracious, very professional.

[TakeFive]

Not counting Cherry Creek how many office buildings in the downtown area are yet to complete?

Only a couple come to mind, one smaller and one medium-sized, both in RiNo.


Image courtesy Mortenson

https://www.mortenson.com/projects/3083-walnut-street

Mortenson is underway on the development and construction of a new four-story, 65,000 square foot mixed-use building in Denver’s River North Art District (RiNo). The project includes three floors of Class A office space, ground floor retail and a 95-stall parking garage with two levels below-grade. Mortenson will occupy approximately 37,000 square feet and lease out the remaining space to third-party tenants.

Mortenson plans to occupy the middle two floors and lease out the top floor for office space and the ground floor for retail. Their ETA was 4th quarter of 2024.

Steel House
3100 Brighton Blvd


Image courtesy Steel House -- Morris Adjmi and Open Studio Architecture

https://milehighcre.com/300000-sqft-...round-in-rino/

...Beacon Capital Partners and Denver-based Elevation Development Group have broken ground on Steel House. The 12-story, 300,000-square-foot office and retail project, located at 3100 Brighton Blvd in RiNo... The industrial biophilic design, by Morris Adjmi and Open Studio Architecture, wraps around the largest elevated private park in RiNo. The building’s silhouette reflects RiNo’s storied industrial history, with up to 41,000 square-foot floor plates framed by expansive floor-to-ceiling windows that open onto private tenant terraces.

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With Respect to Cherry Creek

After a marathon of analysis through mountains and valleys and many, many late nights of debate -- A DECISION HAS BEEN MADE.

WELCOME TO YOUR NEW 15-MINUTE COMMUNITY—CHERRY CREEK WEST


Thanks to Streetsblog's Blake Aued, ever the humorist

Friday’s Headlines Will Be There in 15 Minutes

We promise: Whether you live in a 15-minute city or a 20-minute suburb, you will be allowed to leave.

[TakeFive]

Updating the state of office space

Hot off the Press:
The Colorado Trust Relocates HQ to The Hub North in RiNo
July 16, 2024

Tributary Real Estate, a commercial real estate brokerage firm based in Colorado, announced the successful lease negotiation for The Colorado Trust‘s new 14,000-square-foot, full-floor headquarters at The Hub North in RiNo.

The Colorado Trust is a private philanthropic foundation that was founded in 1985 and makes grants statewide. The foundation’s mission is to advance the health and well-being of people living in Colorado. The Colorado Trust engaged Tributary to help identify a new office that would increase workplace efficiencies while supporting its team and the communities it serves.

The Colorado Trust is currently located at 1600 Sherman St.

Johns Manville Signs New Lease to Keep World Headquarters in Denver
May. 08, 2024

DENVER—Wednesday, May 8, 2024—Johns Manville (JM), a leading manufacturer of premium-quality building and specialty products and a Berkshire Hathaway company, announced today its world headquarters will stay in downtown Denver through at least 2035. The company renewed a lease with Brookfield Properties for over 121,000 square feet of space on five floors in the high-rise building at 717 17th St.

JM moved to Denver in July 1988. Over 300 employees work at the world headquarters building, supporting corporate functions such as finance, information technology, supply chain, human resources and legal.

Certainly, Mayor Mike was pleased.

“We are thrilled that Johns Manville and its employees have made a strategic and intentional decision to remain in the heart of our downtown corridor,” said Denver Mayor Mike Johnston. “In addition to retaining their global headquarters, 300 jobs, and other economic benefits for our community, Johns Manville's re-commitment and investment in a downtown Denver location represents an opportunity to support growth and stabilization in our city center.”

The Mayor’s Office and the Downtown Denver Partnership both offered support in recent months as JM pursued information related to safety, construction, traffic and parking.

I wonder if Warren Buffett signed off on this? Has he ever even seen the space? Good grief; it's a short hop by plane from Omaha.

Colorado Chamber Announces Move to New Office Space
April 23, 2024

DENVER – The Colorado Chamber of Commerce today announced it is relocating to a new office building in downtown Denver. The organization will be moving to the fifth floor of 1700 Broadway at the Atrium Campus effective in June 2024.

The new office will include a more collaborative workspace for employees, technology upgrades to better connect statewide Chamber members, additional individual office space to support team growth, and an expanded conference room with enhanced video and audio technology capabilities. These features will help facilitate the implementation of the Colorado Chamber’s 10-year strategic action plan to improve the state’s business climate.

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comme ci comme ça

Meta aka Facebook
has decided to vacate its two floors at at 1900 16th Street amounting to ~47,000 Sq Ft but will turn around and lease 24,000 Sq Ft on the Top Floor of this building.

Whole Foods
is moving its Regional Headquarters from 3012 Huron St. to 1500 Wynkoop St. and downsize by ~ 25,000 less Sq Ft in the process.

[TakeFive]

Looking at You, Colorado

These 10 U.S. states have America’s best economies in 2024
JUL 18 2024 By Scott Cohn -- CNBC

10. Delaware -- 9. Idaho -- 8. Nevada -- 7. Georgia -- 6. Utah
5. Arizona -- 4. North Carolina -- 3. Tennessee -- 2. Texas -- 1. Florida

Kind of tells a Red State story doesn't it?

Interestingly Colorado's ranking at 16th is much better than last year's ranking (32nd) but only the Shadow knows why.

America’s Top States for Business 2024: The full rankings
JUL 11 2024 -- CNBC

Colorado's composite ranking is 16th this year as compared to 11th last year so they continue to drop in the rankings. But being rated in the Top 20 is still respectable.

Last year for grins I also looked at Washington and Arizona. Washington has dropped from 7th last year to 10th this year. Arizona rose from 14th last year to 12th this year so not much of a move up. After ten years of trying to make the state more business friendly they have improved each of the last two years. But being business friendly is not weighted that much.

Colorado's lowest rankings this year are for "Cost of Doing Business" at 39th and "Business Friendliness" at 32nd but both are low rated in importance.

Fortunately for Colorado, the two highest weighted rankings are for "Infrastructure" and "Work Force" where Colorado ranks 12th and 11th.

Notes:

If you're curious about methodology you can find that HERE.

I did discover last year that these ranking have a bit of a 'liberal' bias but perhaps justifiably so. For example, with Infrastructure 'resilience' including renewable energy is a factor. Also Airports.

So far the economy remains good including in Colorado. We're probably at the peak of iija money. Not sure the CHIPS and Science Act will be meaningful for Colorado but some help. The IRA money may take a hit depending on the election but it's speculative what that might mean - to Colorado.

[TakeFive]

Now that we're opening, come on by




Images courtesy of Kimpton Claret Hotel

Kimpton Claret Hotel Opens Today In Belleview Station, Denver
18 Jul 2024

“We are excited to open our doors as the first lifestyle boutique hotel in this area,” said Keith Siebenaler, general manager, Kimpton Claret. “Belleview Station is a destination on the rise as it is perfectly located between Downtown Denver, the South Denver corridor and Cherry Creek State Park and really capitalizes on the live, work, play trend in development. Our location in this vibrant neighborhood positions us to become a cultural hub for locals, frequent visitors and newcomers to the area,” he added.

Other than Populus which is scheduled to open mid-October is there any other other hotels still under construction.

[TakeFive]

Tales along the property trail
Who doesn't love a good story, especially a family story? (That's a rhetorical question)

Remember this one?
Four years after completion, a RiNo office building is still empty
July 22, 2024 by Thomas Gounley -- BusinessDen

Rev360
3600 Brighton Blvd.


Image courtesy Anderson Mason Dale Architects

Thomas Gounley provided the backstory via the Denver Post
December 2, 2021

Ed Haselden never wanted to develop a spec office building.When he and his partners broke ground on Rev360 at 3600 Brighton Blvd. in the spring of 2019, they already had a marquee tenant planning to move in. WeWork had committed to taking two of the building’s five floors.

But the coworking company underwent something of an implosion in its first attempt to go public in late 2019. That meant Rev360, completed in July 2020, was sitting vacant. “Our objective was never to own a 100 percent spec building,” Haselden told BusinessDen Tuesday. “It was really putting us in a situation where that’s not what we do.” ... Haselden and his development partners — Keystone Equities, Rob Cohen and Tributary Real Estate — sold Rev360 to San Francisco-based Shorenstein Properties...

I recalled reading about this at the time. Shorenstein is a name I had become familiar with. So what else have they done in Denver?

Shorenstein is also partnering with Denver-based Nichols Partnership to develop the five-story One Platte office building at 1701 Platte St., which will be completed next year.

Not sure how this project has gone?

Then my brain flashed

Wasn't Shorenstein also the owner of that mess of a luxury apartment project in DUS that had all kinds of plumbing problems. Yup, they sure were: originally called The Grand, they sued the builder and moved all the remaining tenants out. I never knew how all that worked out but apparently it's all fixed up and is now called Jasper Towers and offering up to 8 weeks free to lease a unit.

Originally, going back many years
Shorenstein was more of a staid or conservative investor. They had previously "owned Denver City Center downtown, selling the two office towers for $400 million in early 2020."

More recently I came across this:

Shorenstein Under Duress With Troubled Debt Approaching $1B
June 13, 2024 Sasha Jones, New York City Bisnow

Shorenstein Properties has been a fixture in the skylines of cities across the country for decades. But now, some of the office towers that created the Shorenstein family's legacy are beset by problems.

Last week, Shorenstein was forced to surrender ownership of Capella Tower to lender Metropolitan Life Insurance after failing to find a suitable buyer for the second-tallest tower in downtown Minneapolis. That building is just the tip of the iceberg. The San Francisco-based firm has another $822M in defaulted or at-risk debt tied to large office properties from coast to coast, according to a Bisnow analysis of the Morningstar Credit securitized loan database.

So what's the background story for the Shorenstein family.

Walter Shorenstein (via Wikipedia)

Walter H. Shorenstein (February 15, 1915 – June 24, 2010)[1] was an American billionaire real estate developer and investor. His company, Shorenstein Properties, owned 130 buildings totaling at least 28,000,000 square feet (2,600,000 m2) of office space at the time of his death.[2]

He at one point owned 25% of the commercial office space in the City of San Francisco, including the iconic Bank of America Building.

Career
Upon his discharge from the Air Force, Shorenstein moved to San Francisco with savings of $1,000. In 1993, Shorenstein helped an investor group purchase the San Francisco Giants baseball team thus preventing the franchise from moving to Florida.

Family
In 1945, Shorenstein married Phyllis Finley of Wellington, Kansas. She met her husband while working as a volunteer ambulance driver at Travis Air Force Base, where Shorenstein was stationed during World War II

Awards and honors (2 examples)

1997: Democratic National Committee’s Lifetime Achievement Award
2013: Harvard Kennedy School (HKS) establishes the Walter Shorenstein Fellowship in Media and Democracy