DENVER | Main Development Thread #7

[RiNo Randy]

Interesting news about Zeppelin Station.

My question is that now that the receivership issue is resolved, can this place get turned around?

There are no tenants currently occupying the food court. Lash & Company seems to be the only retail tenant.

Article is behind a paywall, but I'm guessing someone here has a subscription.

https://businessden.com/2026/03/24/zeppe...er-rino-office-building-on-eve-of-trial/

[wong21fr]

Originally Posted by RiNo Randy

Interesting news about Zeppelin Station.

My question is that now that the receivership issue is resolved, can this place get turned around?

There are no tenants currently occupying the food court. Lash & Company seems to be the only retail tenant.

Article is behind a paywall, but I'm guessing someone here has a subscription.

https://businessden.com/2026/03/24/zeppe...er-rino-office-building-on-eve-of-trial/

I'm going to say no. The location 🞵🞵🞵🞵🞵 and Kyle Zeppelin is pretty washed-up as a developer at this point- particularly in Denver. He's burnt a lot of bridges, and if he's banking on Alterra staying put that ship's nearly sailed since they've had a eye on relocating since 2022.

[RiNo Randy]

Originally Posted by wong21fr

I'm going to say no. The location 🞵🞵🞵🞵🞵 and Kyle Zeppelin is pretty washed-up as a developer at this point- particularly in Denver. He's burnt a lot of bridges, and if he's banking on Alterra staying put that ship's nearly sailed since they've had a eye on relocating since 2022.

Why would you say the location 🞵🞵🞵🞵🞵? I believe you've said that in the past as well. I have some concerns, but would like to hear your specifics.

I'm no fan of KZ, so I understand the sentiment you are trying to convey.

[TakeFive]

Originally Posted by wong21fr

I'm going to say no. and if he's banking on Alterra staying put that ship's nearly sailed since they've had a eye on relocating since 2022.

Alterra eyes HQ move within Denver’s RiNo neighborhood
December 10, 2025 By Thomas Gounley/BusinessDen -- The Denver Post

Alterra Mountain Co. is pointing its skis to Steel House.

The ski resort owner behind the Ikon Pass is eyeing a lease at the new office building at 3100 Brighton Blvd. in Denver’s RiNo neighborhood, multiple sources tell BusinessDen. The space would replace the company’s existing headquarters a half mile away at Zeppelin Station, where Alterra has just under 40,000 square feet. The company is expected to expand its footprint in the deal, sources say.

The 12-story, 320,000-square-foot Steel House building was completed earlier this year by Boston-based Beacon Capital Partners and Denver-based Elevation Development Group. Beacon declined to comment.

Alterra would be second lease at Steel House.

[TakeFive]

BREAKING -- Good News for Denver



Ambitious ‘High Fidelity’ office conversion gets $63M loan from Denver authority
Mar. 25, 2026 By Andrew Kenney -- Denverite

Developer Asher Luzzatto will receive a $63 million low-interest loan for an ambitious plan to convert two aging office buildings in downtown Denver into a major residential and community hub. The High Fidelity Plaza project aims to turn 1 million square feet of commercial office space into 700 apartment units, plus a bodega, coffee shop, children’s museum, child care center and bookstore.

The Downtown Denver Development Authority approved the low-interest loan at its meeting Wednesday.

And Asher Luzzatto said:

"We are grateful for this public support and are committed to being good stewards of the property, the project and the public funds being made available to us,” he said in a written statement. “We look forward to the day when High Fidelity Plaza is full of life and a blueprint for other transformative projects in Downtown Denver.”

Challenging times for construction; 1st quarter costs have increased, interest rates up a half percent....

But I expect Luzzatto to find some institutional backing... He'll figure it out.

Can we have a 'groundbreaking' this year?

[RiNo Randy]

I just noticed that the second tower crane at the Upton Residences project has been taken down.

That has to mark some kind of a milestone in that development.

Any word on how sales are going? Did the earlier lawsuit/ssue with a major contractor affect that?

[TakeFive]

Denver Construction Costs Up 4.75% in Q1 2026
March 25, 2026 -- Mile High CRE

Denver Market – Q1 2026 Construction Cost Snapshot

• Year‑over‑year cost growth: Denver saw construction costs rise by 4.75 % compared to a year ago—slightly above some other Central cities and below the Central region’s average increase of 3.94 %
• Cost pressures: Like much of the region, Denver continues to face upward pressure from labor intensity increases and long‑term cost escalation tied to policy impacts.
  
• Cost planning: With Denver’s cost escalation above the regional average, project budgets should build in contingency for labor and policy‑driven cost escalation.

I like how they 'diplomatically' phrase that.

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

Originally Posted by RiNo Randy

I just noticed that the second tower crane at the Upton Residences project has been taken down.

That has to mark some kind of a milestone in that development.

Any word on how sales are going? Did the earlier lawsuit/ssue with a major contractor affect that?

That's a good question but I haven't heard any bragging about how many units have been sold.

Hannah Metzger with Westword has an hilarious description entitled "Rickety Romance?"

[wong21fr]

Originally Posted by TakeFive

BREAKING -- Good News for Denver
Ambitious ‘High Fidelity’ office conversion gets $63M loan from Denver authority
Mar. 25, 2026 By Andrew Kenney -- Denverite

I expect Luzzatto to also get his loan for the Denver Energy Center conversion. For ~$100M of DDDA money upper downtown would add over 1,100 units and (probably) a couple thousand new residents. This is a great multiplier effect going on here.

[wong21fr]

Originally Posted by RiNo Randy

Why would you say the location 🞵🞵🞵🞵🞵? I believe you've said that in the past as well. I have some concerns, but would like to hear your specifics.

I'm no fan of KZ, so I understand the sentiment you are trying to convey.

From a streetscape perspective/pedestrian experience there a lot left to be desired where Zeppelin Station is located and that area of RiNo seems to have stagnated over the past few years and I don't think it's going to turn-around in the short-term. Go across the tracks to the Walnut/Larimer corridor or get closer to Derango Market and there's just a different vibe. So if I was looking at a new office lease, I'd relocate to one of those sub-areas.

[RiNo Randy]

Originally Posted by wong21fr

From a streetscape perspective/pedestrian experience there a lot left to be desired where Zeppelin Station is located and that area of RiNo seems to have stagnated over the past few years and I don't think it's going to turn-around in the short-term. Go across the tracks to the Walnut/Larimer corridor or get closer to Derango Market and there's just a different vibe. So if I was looking at a new office lease, I'd relocate to one of those sub-areas.

That's a fair assessment. And it is really an issue along many of the developments on that side of the Art District. Outside of Brighton Blvd, there isn't much very good pedestrian infrastructure, with a few exceptions, like Denargo Market.

However, with it's proximity to 38th/Blake Street Station, it should be considered a prime location. Now that is predicated on the pedestrian infrastructure (bridges, elevators and such) being accessible. The elevators at both pedestrian bridges at 38th/Blake Station have been inoperable for several months...

[RiNo Randy]

Originally Posted by TakeFive

Thanks for the Link; Geopier is quite interesting. I see where Geopier has their HQ in Davidson, NC.

I forgot to mention that it appears they are using this type of system.

https://www.geopier.com/solutions/rammed-aggregate-pier-systems

• Video Link

[TakeFive]

If you want to insert a youtube video, copy/paste only the part after the = ...and if that doesn't work then sometimes you can search youtube and find a different version not on a 'sponsored' network.

• Video Link

[TakeFive]

Originally Posted by wong21fr

I expect Luzzatto to also get his loan for the Denver Energy Center conversion. For ~$100M of DDDA money upper downtown would add over 1,100 units and (probably) a couple thousand new residents. This is a great multiplier effect going on here.

Who knows how long it will take to get their permits?

I did read on KDVR that their goal is to finish by 2030. Presumably they'll do one building at a time?

[TakeFive]

Newsworthy

Still in early stage but I like that they decided not to build apartments.

Duplexes eyed for Shops at Northfield site where apartments were proposed
March 5, 2026 By Matthew Geiger | BusinessDen -- The Denver Post

The Shops at Northfield may be dropping apartments in favor of duplexes. On Wednesday, Arizona-based homebuilder BB Living submitted plans to Denver proposing 105 duplexes on a 15.5-acre site east of the open-air shopping center in Denver’s Central Park neighborhood.

It’s the same site where mall owner Stockdale previously proposed constructing between 1,000 and 1,500 apartments across multiple 5- to 12-story buildings.

BTW, I've never heard of BB Living but I'd guess that Stockdale is familiar with them.

BB Living has done work locally, in Centennial and Erie, in addition to projects in Idaho, Florida, Texas and Arizona.

BB Living’s proposal calls for 210 units in all, each between 1,800 and 2,000 square feet with attached two-car garages. BB Living, whose model is to build three- to four-bedroom houses for rent, didn’t respond to a request for comment.

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I'm always happy to celebrate with my friends at Jordon Perlmutter & Co.

Jordon Perlmutter & Co. Secures Full-Building Lease at Hub Arapahoe
March 23, 2026 -- Mile High CRE

Jordon Perlmutter & Co. announced today that Bron Tapes Holding LLC, one of the nation’s leading distributors and converters of pressure-sensitive tapes, adhesives and flexible material solutions, has signed a full-building lease totaling 82,000 square feet at Hub Arapahoe

11213-11243 E. Caley Avenue


Jordon Perlmutter & Co.

This demonstrates ongoing business activity. The industrial market seems to be largely "in balance" and there's not much new construction at this time.

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Suburbs surge: Douglas and Weld counties lead Colorado’s population boom
Mar 26, 2026 By Robert Garrison -- Denver7 News

DENVER — Newly released Census data shows Colorado’s population growth is being driven overwhelmingly by suburban counties like Douglas and Weld, while cities like Boulder and Denver are seeing stagnant growth.

Note: This is for the period from 2020 to 2024.

[TakeFive]

FWIW -- Compare and Contrast

Seattle -- The Emerald City

Seattle has had a number of reasons for their rapid growth and success starting with Amazon. They have also benefited from Seattle (or the Seattle area) having a number of 'recognizable' headquarters. It became a popular place for Big Tech expansion likely due to being a relatively short hop up the coast from the Bay Area.

So I decided to check in to see how Seattle was doing. Oh My Gosh.

AI Overview

Downtown Seattle's office vacancy rate has surged to record highs, exceeding 30%–35% in early 2026, driven by hybrid work trends, tech sector slowdowns, and high local business taxes, says a DNews report.

• Contributing Factors: The JumpStart tax (up to 2.4% on high-earning employees) and general business taxes are cited as reasons for firms moving to neighboring areas like Bellevue.

In contrast, Bellevue has seen significant growth in its office workforce, partially due to Amazon expanding there rather than in Seattle.

Bellevue -- Why is Bellevue nicer than Seattle?

Bellevue, Washington, is a prominent high-tech and retail center located across Lake Washington from Seattle. Bellevue, meanwhile, moves at a slightly calmer pace. It has that clean, polished feel, is more spacious, a little quieter, and very well maintained. The downtown core has high-end shops, good restaurants, and newer buildings. It's not as gritty or eclectic as Seattle, but for many, that's part of the appeal.

Amazon has built some nice new towers in Belleview and as their downtown Seattle leases have expired they moved to Belleview. Many prominent companies have also moved from Seattle to Belleview.

One Reason to Like Denver's prospects.

While Denver has (had) some of the same 'flaws' they're now a few years into cleaning up downtown as well as their DDDA program for rejuvenating the area.

They also do suffer from a few stupid politically driven issues but perhaps that will change - due to necessity. For example I read where many restaurants are adding a 20% surcharge to their bills due to high minimum wages etc. That crazy that they feel they need to do that to survive.

What may drive growth (in jobs) downtown is still an open question?

[TakeFive]

Today's Economy

Oracle cutting thousands in latest layoff round as company continues to ramp AI spending
Mar 31 2026 -- CNBC

Whether this will impact their Denver office, who knows. It appears that they may have downsized previously but I assume they want to retain a presence in Denver.

Interestingly, a sister building across the street at 7601 Technology Way in the Tech Center was recently purchased to be torn down and turned into apartments. TCR will be the apartment developer.

[RiNo Randy]

Originally Posted by RiNo Randy

And now it is official. The Hornet is closing after nearly 30 years. Truly sad. https://www.instagram.com/p/DM8OhPtpKjq/?utm_source=ig_web_copy_link&igsh=MzRlODBiNWFlZA==

I drove by here today and saw that the property is still for lease.

And to that I ask WHY DID THE HORNET HAVE TO CLOSE?

[mhays]

The Seattle post has some correct things, but in some ways Downtown Seattle is still booming -- tourism and resident population hit new highs every year.

[COtoOC]

I drive through the DTC daily to work and didn't realize that the building under construction on the west side of Belleview Station was going to be so tall. Looks like they just jumped the crane.

I'm assuming this is the Belleview Station Block F? I'm always amazed at how fast Belleview Station has built up and the mini skyline created in such a short time.

https://milehighcre.com/belleview-station-announces-approval-of-block-f/

[laniroj]

Originally Posted by TakeFive

One Reason to Like Denver's prospects.

While Denver has (had) some of the same 'flaws' they're now a few years into cleaning up downtown as well as their DDDA program for rejuvenating the area.

They also do suffer from a few stupid politically driven issues but perhaps that will change - due to necessity. For example I read where many restaurants are adding a 20% surcharge to their bills due to high minimum wages etc. That crazy that they feel they need to do that to survive.

What may drive growth (in jobs) downtown is still an open question?

I've just been lurking lately but I'll join in on this one. Have you been downtown lately? It's abysmal. I saw three people while walking 4 blocks the other week at 8:45AM, including crossing over 16th Street Mall - I even walked past an active RTD train unloading - 0 people. To say the energy is dead downtown would be an understatement. It's less than dead. Upper downtown - somehow even worse. LoDo still has energy but nothing like pre-covid. I admire these developers taking the risk down there and wish them well.

Personally, my outlook for Downtown is akin to the immediate aftermath of the savings and loan era where downtown was just empty but in some ways it's almost worse now than it was then. The suburban folks now seem to be avoiding downtown entirely whereas in the 80's they were still coming downtown for shows, plays, shopping, etc. I honestly don't know if Downtown will recover, ESPECIALLY so if River Mile takes off.