DENVER | Main Development Thread #7

[TakeFive]

Originally Posted by wong21fr

Another bit of good news as Lumen Technologies announced a move to downtown from Broomfield.


Lumen Technologies to auction 55-acre suburban campus, move employees to Denver


This represents a couple thousand employees at least relocating and will more than make up for the loss of TIAA to the suburbs of Dallas.

That's Great News.

Don't know what the DBJ said; did they say anything about space? I did find this:

https://www.datacenterdynamics.com/en/ne...e-broomfield-campus-site-up-for-auction/

"Over the past few years, we’ve learned new ways to work, to interact with, and to serve our customers. This process caused us to take a step back and look at the locations from which our employees work. ... All employees now work from home or from one of two different locations in downtown Denver."

[wong21fr]

Originally Posted by TakeFive

That's Great News.

Don't know what the DBJ said; did they say anything about space? I did find this:

https://www.datacenterdynamics.com/en/ne...e-broomfield-campus-site-up-for-auction/

Article mentions their building on 14th Street, the old Mountain Bell, but nothing else.

Hard to see how they get a couple thousand people downtown just at that location. I'm sure there's a large chunk of WFH, but it seem like they'll need a good chunk of new space down there as well.

[jhwk]

Originally Posted by wong21fr

Now ask me the last time that I saw a dismounted officer walking the Mall or around downtown...

I walk up and down the mall every day and were about a billion cops out there on Tuesday looking bored, though I am sure it will taper off when the spotlight is off of the situation. I saw Chris Hinds out on the mall as well.

I'm glad I didn't get stabbed! Ever since I got punched by a bum at 16th & Broadway in 2021 I do watch the hands of people holding objects and walking towards me, though. The mall has actually recovered quite a bit since those days - I also haven't seen a drop in activity this week so I am hoping this incident is a one-off and people continue to return to downtown.

[EngiNerd]

Originally Posted by wong21fr

Article mentions their building on 14th Street, the old Mountain Bell, but nothing else.

Hard to see how they get a couple thousand people downtown just at that location. I'm sure there's a large chunk of WFH, but it seem like they'll need a good chunk of new space down there as well.

I've been to the campus recently, most were already working from home long before this announcement. While they technically have thousands of employees employed in Broomfield, even if they "move" to downtown it won't represent a big influx of workforce unfortunately.

[wong21fr]

Originally Posted by EngiNerd

I've been to the campus recently, most were already working from home long before this announcement. While they technically have thousands of employees employed in Broomfield, even if they "move" to downtown it won't represent a big influx of workforce unfortunately.

I kind of figured that it's not a big of an increase as it sounds on paper. However, with WFH decreasing somewhat I'd expect a modest bump in activity and I'm hopeful that there will be some increased leasing to accommodate this relocation- I'm thinking that it might be in the form of grabbing a couple of floors at 1490 Curtis Street. Lumen seems like they are a pretty cheap company. What I wonder is if the Mountain States building can even accommodate office workers, I had heard that most of the building was converted to data center and network support for the adjacent building at 1425 Champa.

Similar to TIAA, it's not like they are fully back in the office either, so the loss threre isn't as large as one might think to downtown vitality. Now to city coffers on the other hand....

[TakeFive]

I didn't know who Lumen Technologies is

Originally Posted by EngiNerd

I've been to the campus recently, most were already working from home long before this announcement. While they technically have thousands of employees employed in Broomfield, even if they "move" to downtown it won't represent a big influx of workforce unfortunately.

I didn't realize Lumen was the rebranded corporate name for CenturyLink (since 2020). They still use the CenturyLink name for their retail business. At one point because of their debt load their stock dropped to 97 cents. But they may be like a Cat with Nine Lives.

According to Motley Fool:
By Keith Noonan – Nov 12, 2024

What's next for Lumen?

Thanks to private connectivity fabric (PCF) deals with Microsoft, Meta Platforms, and other customers, Lumen stock has gained favor as an artificial intelligence (AI) play this year. Even with today's pullback, the company's share price is up more than 400% across 2024's trading.

Lumen could still be in the early stages of rising, AI-related PCF demand, and additional deals could significantly boost the company's free-cash-flow generation. If so, the company would be in good position to continue paying down debt...

Don't think I'll buy the stock but who knows how bright their future might be which would be quite the change.

[TakeFive]

I started here:
Weekend Interview: Mintwood Founder Katy Slade On Mixed-Use Projects, Office Conversions And Why 'Cookie Cutter' Won't Do
It turns out Katy was part of team that converted the Santander Tower in Dallas. It's a partial conversion; Santander is still the primary office tenant.

Then I found a recent and quite good article by CommercialCafe.
Construction Complete on Office-to-Residential Conversion in Downtown Dallas
January 6, 2025

According to recent statements released by family-owned construction management and contracting company Adolfson & Peterson Construction, work is now complete on the office-to-residential conversion at the iconic Santander Tower in Dallas. The owner of the 50-story downtown skyscraper, Dallas-based Pacific Elm Properties, aimed to build upon the existing success of the property and set a new standard for mixed-use spaces. Originally completed in the early 1980s, Santander Tower was previously completely renovated in 2017.

Santander Tower -- 1601 Elm St
(It's the building on the left)

Work began on the project in 2022 to create 291 multifamily units across 14 floors of former office space. The completion of phase one delivers a selection of one- and two-bedroom units designed to offer a modern living experience. Amenities include a Wellness Floor that’s located on the building’s 33rd and features a Pilates studio, spa-grade saunas, a sports lounge, and an indoor pickleball court — the first of its kind in a luxury high-rise.

“Building on the existing success of Santander Tower, we are honored to have partnered with Pacific Elm, AP and many more to bring this project to completion,” said Katy Slade, principal and founder of Mintwood Real Estate. “This development sets a new standard for mixed-use spaces, offering a seamless blend of innovative residential units, exceptional amenities, and curated retail and restaurant experiences. Our goal was to create a vibrant, urban community where residents and visitors alike can connect, work, and live in a dynamic and inspiring environment.”

I'm guessing there's are parallels between downtown Denver and downtown Dallas. Dallas was an early mover on office to residential. But for whole building conversions the best candidates look (for example) like The Equitable Building at 730 17th Street. But seeing what they were able to do with Santander Tower is certainly interesting.

[TakeFive]

Stupid Media

When I get curious my mind starts churning. Because Dallas seemed to be about three years ahead of Denver I did some more digging.

It turns out several buildings in Dallas are "being converted" to residential. It turns out that when the media says "being converted" that represents "Good Intentions." Other than for the Santander Tower I have found nothing else that as yet is real. Fort Worth has had a few historical, modest sized buildings converted to 'lofts' (one back in 2006).

With respect to Denver

Consider the recent Nichols Partnership conversion of 1200 N Lincoln into the Art Studio Lofts; Nichols has a love for challenges like this. I had read (somewhere) that at least they benefitted from pre-inflation costs. Units rent for $1,200 to $1,500 per month. Oh BTW, I just checked on availability.

Move in by Jan 31 and get up to 10 weeks free, and up to $500 on a Visa Gift Card! Plus get your choice of an annual membership to Denver Art Museum, History Colorado, or Colorado Photographic Arts Center! Lease terms apply; ask your leasing agent for details.

Obviously there's no waiting list for these studios.

[TakeFive]

1290 Broadway


Courtesy LoopNet

https://www.loopnet.com/Listing/1290-Broadway-Denver-CO/34174946/

Institutional Class A Multi-Tenant Office1290 Broadway.
252,230 SF79% Leased Office Building Online Auction Sale
$7,250,000 Starting Bid

Executive Summary
1290 Broadway (“the Property”) is one of Denver’s iconic office buildings providing tenants with a live, work, play experience. This institutionally owned property is 78.9% leased and has maintained an average occupancy of nearly 85% over the last 20 years.

• 1290 Broadway's above average parking ratio with below market costs provides a competitive advantage
• Recently leased 12,214 SF to a healthcare company in as-is condition
• 54,685 SF of new leases since 2022
• No rollover in 2025 with only one tenant rolling in 2026
• Large and small tenants with 81% of vacancy on floors 7 or higher
• Peripheral CBD location offers a neighborhood feel with CBD access

Being institutionally owned there may be no debt. Might want to check the utility bill balance. (Just sayin')

[BrIced_Tea]

Originally Posted by TakeFive

Stupid Media

When I get curious my mind starts churning. Because Dallas seemed to be about three years ahead of Denver I did some more digging.

It turns out several buildings in Dallas are "being converted" to residential. It turns out that when the media says "being converted" that represents "Good Intentions." Other than for the Santander Tower I have found nothing else that as yet is real. Fort Worth has had a few historical, modest sized buildings converted to 'lofts' (one back in 2006).

With respect to Denver

Consider the recent Nichols Partnership conversion of 1200 N Lincoln into the Art Studio Lofts; Nichols has a love for challenges like this. I had read (somewhere) that at least they benefitted from pre-inflation costs. Units rent for $1,200 to $1,500 per month. Oh BTW, I just checked on availability.

Obviously there's no waiting list for these studios.

For more examples of office building conversions in Dallas, check out "The National" (previously Elm Place) and "The Sinclair" (previously Energy Plaza) both of these have been recently converted to mixed use with luxury apartments in part of the towers.

I personally recently looked at moving into the Art Studio Lofts, but paying $1,300 a month for less than 300sf of space wasn't very appealing to me when there's still better options around town.

[TakeFive]

Thanks for the Tips

Originally Posted by BrIced_Tea

For more examples of office building conversions in Dallas, check out "The National" (previously Elm Place) and "The Sinclair" (previously Energy Plaza) both of these have been recently converted to mixed use with luxury apartments in part of the towers.

I personally recently looked at moving into the Art Studio Lofts, but paying $1,300 a month for less than 300sf of space wasn't very appealing to me when there's still better options around town.

Interestingly, since I read Bisnow, if I had thought to click on the Dallas thread I could have found these.

Both projects are Big Boys

Dallas' Energy Plaza Ready To Reopen As The Sinclair After $300M Conversion
February 2, 2024 Olivia Lueckemeyer, Dallas-Fort Worth/Bisnow


Courtesy of Todd Interests

Rebranded as The Sinclair, the newly opened 1.2M SF tower now houses 239 luxury apartments and 450K SF of high-end office space, The Dallas Morning News reports. Developer Todd Interests spent more than a year renovating the building, which dates back to 1983.

Note the reference to both projects:

The two uses have separate entrances and lobbies, similar to how Todd Interests reworked the First National Bank tower on Elm Street into The National residences and The Thompson hotel. That project cost $450M and debuted in 2020.

Switching to the Dallas Observer from July 12, 2022 By Kate Pezzulli:
Again both projects are referenced:

Todd Interests spent $460 million in updating the First National Bank tower on Elm Street, converting the property into The National apartments, the Thompson Hotel and other office and retail spaces.

Philip Todd said he is excited about the project at 1601 Bryan St., formerly called Energy Plaza, and emphasized the importance of preserving the building's history. It was built by Pritzker award-winning architect I.M. Pei, who designed five buildings in Dallas, including City Hall.

First National is 52 stories with 1.4 million Sq Ft. It was listed on the National Register of Historic Places in 2017.

Note: The First National conversion was prior to inflation - but not the Energy/Sinclair project. Both projects were partial conversions. Because First National used TIF, they reserved 30 units as affordable at up to 80% of the AMI.

So conversions can be done if you have lots of money to make it happen.

[llamaorama]

You know what though, in Dallas, downtown is one of like 3 "urban" places to live available in a metro that is like 3x the size of Denver's, and has a certain appeal even if compared with other cities its kind of terrible. So maybe people will pay a premium to rent an apartment there that's suboptimal because it was carved out of an office building. Also maybe there's more sentiment for keeping the skyline intact - local government will cave on tax breaks, etc before letting any of those towers get torn down. That would look so bad for Dallas.

But in Denver there's a lot of choice for an urban lifestyle in the many vibrant neighborhoods surrounding the CBD, and a large stock of really nice, new, light-filled, high-ceiling, amenity-rich apartment and condo towers. Also unlike Dallas, few of Denver's 1970s/1980s high rises are regarded as architectural beauties, most of them are ugly brown and black striped boxes. And the few blocks that are considered the true central business district of downtown have the least energy, at least that's how I remember it when I visited Denver last.

So who knows, in Denver maybe imploding those vacant 80s savings and loan era boxes with their mostly parking garage bottoms and replacing them with densely packed 20-30 story mixed use buildings similar to around Union Station and Golden Triangle would give downtown a boost. Downsized office occupancy in nicer buildings would be better than no office occupancy when companies sign leases in the burbs, and the population density and mixed use vibe would clean up some of the grime that exists at street level.

[CONative]

Plans submitted for an 18-story residential building for Central Park station? I said this many years ago when so many haters had opinions about the lack of density in Stapleton/Central Park/Northfield when the development was in its infancy -- that it would take time to create the density on an 8 square mile area; AFTER the single-family and other multi-family is finished. You can't create high density in 8 square miles overnight. It's simply too huge. These other designated high-density lots were deliberately left vacant to wait for when the market allows by the Stapleton development plan and city.

As you drive through today, you can see this happening now that plots of land are more scarce. This article also shows plans for more density of buildings at Northfield -- eliminating parking lots for multi-story residential buildings along retail.

https://frontporchne.com/new-develop...and-nw-aurora/

[COtoOC]

Originally Posted by CONative

Plans submitted for an 18-story residential building for Central Park station? I said this many years ago when so many haters had opinions about the lack of density in Stapleton/Central Park/Northfield when the development was in its infancy -- that it would take time to create the density on an 8 square mile area; AFTER the single-family and other multi-family is finished. You can't create high density in 8 square miles overnight. It's simply too huge. These other designated high-density lots were deliberately left vacant to wait for when the market allows by the Stapleton development plan and city.

As you drive through today, you can see this happening now that plots of land are more scarce. This article also shows plans for more density of buildings at Northfield -- eliminating parking lots for multi-story residential buildings along retail.

https://frontporchne.com/new-develop...and-nw-aurora/

This is exciting and hopefully it gets built. I've lived in Stapleton/CP for almost 20 years now and it finally feels a little urban. My neighborhood is definitely walkable anyway.

[wong21fr]

Originally Posted by CONative

Plans submitted for an 18-story residential building for Central Park station? I said this many years ago when so many haters had opinions about the lack of density in Stapleton/Central Park/Northfield when the development was in its infancy -- that it would take time to create the density on an 8 square mile area; AFTER the single-family and other multi-family is finished. You can't create high density in 8 square miles overnight. It's simply too huge. These other designated high-density lots were deliberately left vacant to wait for when the market allows by the Stapleton development plan and city.

As you drive through today, you can see this happening now that plots of land are more scarce. This article also shows plans for more density of buildings at Northfield -- eliminating parking lots for multi-story residential buildings along retail.

https://frontporchne.com/new-develop...and-nw-aurora/

There's actually two 10-story plus proposals at Central Park Station. You have this tower and also another proposal that was submitted by Ulysses Development for a 1,000 plus unit project on the RTD Park lot just to the west of the 18-story proposal.

Excited for the redevelopment of the Northfield Parking lots as that will add a couple thousand additional residents to an area that has added thousands of units over the last five years- there's some real, accessible density that's going in there. It's also a chance create more of a town center feel at Northfield that's currently lacking along with additional first to market retail. I'm personally tired of having to go down to the Stanley for my yuppie shopping experience.


Funny that Front Porch or Central Park Scoop hasn't mentioned the Whole Foods at CPB and 40th that's going through permitting or the rumors of a Trader Joe's at Northfield. The grocery shopping experience in Central Park pathetic since both King Soopers are barely a tick above the Target and the small grocers are so high-priced.


Then there's the rumored Dicks and Lifetime Fitness replacing Macys....

[COtoOC]

Originally Posted by wong21fr

There's actually two 10-story plus proposals at Central Park Station. You have this tower and also another proposal that was submitted by Ulysses Development for a 1,000 plus unit project on the RTD Park lot just to the west of the 18-story proposal.

Excited for the redevelopment of the Northfield Parking lots as that will add a couple thousand additional residents to an area that has added thousands of units over the last five years- there's some real, accessible density that's going in there. It's also a chance create more of a town center feel at Northfield that's currently lacking along with additional first to market retail. I'm personally tired of having to go down to the Stanley for my yuppie shopping experience.


Funny that Front Porch or Central Park Scoop hasn't mentioned the Whole Foods at CPB and 40th that's going through permitting or the rumors of a Trader Joe's at Northfield. The grocery shopping experience in Central Park pathetic since both King Soopers are barely a tick above the Target and the small grocers are so high-priced.


Then there's the rumored Dicks and Lifetime Fitness replacing Macys....

I can walk to the Stanley so I'm good there lol! I'd heard the Whole Foods rumor, but a TJs and Life Time Fitness would bring my entire world into the 80238.

I'm surprised, with all the housing and hotels now near Northfield, that they haven't expanded the shopping and dining options yet. There's so much space for expansion. We tried Waldos over the weekend after a movie and it was good.

[AHS1983]

https://coloradosun.com/2025/01/24/donal...-order-45000-federal-employees-colorado/

[TakeFive]

Sometimes there's an upside to the downside

Metro Denver apartment rents plunge in fourth quarter as a blizzard of new units descend on market
January 24, 2025 By Aldo Svaldi -- The Denver Post

Metro Denver’s apartment market experienced its biggest quarterly rent decline on record as a massive wave of new supply swamped demand, causing vacancy rates to rise in every market, according to an update Thursday from the Apartment Association of Metro Denver.

The region added nearly 20,000 new apartments last year, about double the typical pace seen in recent years. And while demand rose to the occasion, with 14,082 additional units leased, that absorption turned negative in the final three months of the year, causing worried landlords to cut rents to remain competitive.

High unemployment and a weak economy aren’t to blame this time around. Rather, supply has gotten ahead of demand in an unprecedented way, Bruteig said.

What about 2025?

Another 15,000 new apartments are expected to come online this year, before a sharp decrease in the years that follow.

Looking ahead, growth in population is an open question but maybe there's benefits to no longer being a high growth city/metro.

IMO, an urban-suburban neighborhood like Central Park should be well positioned for new development (except 2025 could be quiet everywhere for new construction).

Nice Find:

Originally Posted by AHS1983

https://coloradosun.com/2025/01/24/donal...-order-45000-federal-employees-colorado/

It's really hard to predict how impactful this may be but certainly more bodies downtown would be a plus.

There's so much going on at the Federal level it's also hard to predict government employee levels going forward. Even the City of Denver which has grown their employees by large numbers 'may' find the need for more 'efficiency' depending on... too many factors to predict.

[AHS1983]

It may be that all federals returning to work 5X/week will have a positive feedback loop with Colorado state and Denver city employees.

Watch and wait, I guess.

[wong21fr]

A legend in the preservation and development of downtown Denver has passed:

Denver Preservationist Dana Crawford Dies

Had the pleasure of working for Dana for a summer internship in college. It was a great exposure to understanding the intricacies of the development process and also how crazy it could be.