DENVER | Main Development Thread #7

[TakeFive]

Interesting points

Originally Posted by RiNo Randy

I find this to be an interesting comment as all residential buildings within the 38th & Blake Station area need to include an affordable housing element to take advantage of the 16 story height allowance/incentive, including 1RN. Keep in mind that at 3850 Blake, 40-70% of the units will be designated affordable, with only 107 parking spaces for 310 units.

I did find it interesting that the website is live for AVE Station House: https://www.aveliving.com/locations/denver-co/station-house But I noticed that it is being marketed as "Luxury Residences". Make of that what you will.

The tower crane base at was poured on that site and the crane itself should be erected beginning tomorrow (equipment is on site and being prepped).

It also seems that excavation work for 3875 Walnut has commenced as well.

Site preparation continues at 3300 Blake. Just another quick note here - the zoning for that site is equally split between a max of 8/12 floors.

Formative took the somewhat unique strategy of targeting affordable units.

3850 Blake

3850 Blake is poised to set a new standard for attainable urban living with a thoughtfully crafted, 310-unit community of efficiently designed residences averaging 563 square feet. With nearly 40% of residences priced within reach for those making 70% of the area median income (AMI), and more than 70% attainable for those earning below 100% AMI...

Jll secured the construction loan of $65.5 million which is only 211K per unit plus whatever the development partnership added. The builder, The Weitz Company, is a partner in this project. Especially in today's market place I like the strategy of targeting less expensive units; it's likely to be a wise decision.

One River North may have the requisite "attainable units" but it's very obviously a high end project.

AVE Station House sure appears to intend to offer more affordable units including many furnished units but if it's not "subsidized" housing then they all advertise as being "luxury" apartments. BTW "AVE" is actually a 'brand'; there's a "AVE Phoenix Sky" for example.

[TakeFive]

Every once in awhile a project will 'add' to the community

Denver Announces Expanded Vision for East Colfax

April 10, 2026 -- Mile High CRE

Mayor Mike Johnston announced this week an expanded vision for East Colfax that will include retail and workforce housing alongside a rebuilt Denver Police District 6 Station. The development is timed to take advantage of the new East Colfax Bus Rapid Transit (BRT) line, which is expected to wrap construction along that section of Colfax this year.

Denver Police are nearing construction of a state-of-the-art facility on East Colfax and Washington Street that will serve Police District 6 and replace the current, aging facility. That project, approved by voters as part of the Elevate Bond, is expected to seek contract approval from Council and break ground this fall before wrapping by December 2027.

This is the part I like.

The police station will provide more space for officers, address the community’s desire for a greater police presence along the corridor, and feature a fully accessible community room for members of the public to gather.

[TakeFive]

The Other Side -- Challenges of the Landlord

Landlords Are Being Sued More Than Ever, Pushing Liability Insurance Up
April 12, 2026 By Chloe Gallivan, South Florida Bisnow

Setting the drama:

When Aron Sotnikoff got a letter from an attorney seeking a payout for an apartment tenant who slipped and fell in standing water at one of his firm's properties, he immediately checked the security footage to review the incident.

Here is that nasty injury:

Sotnikoff, the director of risk management for development and asset management firm Time Equities, was bewildered watching the tenant walk by a puddle, then walk back up a staircase before returning to walk straight through it.

“This person didn't even have the good sense to actually fall,” said Sotnikoff, who is in charge of acquiring the insurance for the company’s 43M SF of commercial real estate.

“Did I miss something? Is this for real?” he said of his initial reaction to reviewing the tape. “Then there's that second reaction that is like, ‘Oh, here we go again.’”

What's the impact of all this?

Time Equities has fielded more and more of these claims in recent years, resulting in its umbrella and excess insurance premiums quadrupling since 2020, Sotnikoff said.

Commercial property owners across the country are grappling with rapidly rising premiums for and decreasing availability of liability insurance coverage on their properties.

Anybody hear of Morgan & Morgan? They are the official sponsor for the AZ Diamondbacks.

Personal injury law firms are capitalizing on the opportunity by leveraging aggressive marketing tactics to drive more claims.

Morgan & Morgan, the largest personal injury law firm in the country, spends $350M annually on advertisements across hundreds of billboards along highways in major metros and cable TV commercials.

Landlords can't charge tenants for the cost of insurance but there is an indirect cost to GOOD Tenants as upward pressure is put on rents. Unless it's a soft rental market like Denver currently has which could then create the risk of losing money.

[TakeFive]

Take Me Back to the Good Old Days

Cherry Creek Apartments Acquired For $137M
April 08, 2026 By McKenna Harford, Denver Bisnow

A Cherry Creek apartment building sold for around $4M less than its last sale in 2017.

The Dinerstein Cos. acquired Steele Creek, a 218-unit building at 3222 E. First Ave., for $137.3M. The building was last purchased by UDR for $141.5M.

UDR, Inc. is headquartered in Highlands Ranch, Colorado. The company's corporate office is located at 1745 Shea Center Drive....

AI Overview

UDR is actively selling assets and acting as a net seller of apartments, targeting approximately $700 million in community sales in early 2026 to optimize its portfolio. This strategy includes selling diverse, older assets and expanding partnerships, such as a $230 million joint venture expansion with LaSalle Investment Management, where UDR contributed four communities.

Steel Creek Apartments Courtesy T|WP (The Wells Partnership Company)

• Owner: BMC Investments
• Architect: Housing Studio
• Contractor: Haselden Construction

Steele Creek was a trailblazer in the Cherry Creek neighborhood, setting the bar for luxury rental living in Colorado. It was built as the first high-rise rental apartment building to be programmed like a a 5-star hotel. The podium building consists of 218 rental units with over 17,000 square feet of pedestrian-oriented, street-level retail spaces.

Steel Creek Apartments -- 3222 E. First Ave






Courtesy BMC

[TakeFive]

Office Stabilizes Despite Setbacks; Industrial Slows but Holds Strong
April 14, 2026 -- Mile High CRE

CBRE has released its Q1 2026 report on Denver’s office and industrial markets. The industrial sector continued to show strong fundamentals, albeit with some modest slowing. Meanwhile, the office market remained on a gradual path toward stabilization...

Call it Treading Water.

Revised Colorado jobs report shows state lost 11K jobs over the last year
Apr 14, 2026 By: Shannon Ogden -- Denver7 News

DENVER — Colorado lost 11,000 nonfarm payroll jobs last year, according to a grim revised jobs report from the Colorado Department of Labor and Employment.

Brian Lewandowski, executive director Business Research Division at the Leeds School of Business at CU Boulder, said it is unusual for Colorado to lose jobs outside of recessionary periods.

I haven't heard a whisper of concern from any of the Politicos.

With respect to the legislature, there's this:

Colorado lawmakers stopped imposing new fees amid voters’ cost-of-living concerns. They’re now making them optional
Apr. 16, 2026 By By Jesse Paul -- The Colorado Sun

With voters’ mounting cost-of-living concerns nixing the conversation at the Colorado Capitol around new fee-funded programs and initiatives, lawmakers this year are pursuing a new strategy to pay for their policies: making surcharges optional (or forcing them onto businesses).

A review of past years.

When Democrats took control of state government in 2019, they began passing bill after bill imposing new fees on Coloradans to pay for everything from transportation projects to waste diversion initiatives.

The Taxpayer’s Bill of Rights requires voter approval for any tax increases. But with a simple majority vote, lawmakers can approve fees as long as they go toward linked programs — like a fee on deliveries paying for road improvements. That’s why Democrats have repeatedly turned to fees to fund their policy goals.

[TakeFive]

CCD Celebrates Project Milestone with Topping Out Ceremony
April 16, 2026 -- Mile High CRE

The Community College of Denver (CCD) marked a significant milestone in the transformation of its Boulder Creek building on the Auraria Campus with a topping out... The ceremony celebrated the placement of the final structural element for a 9,484-square-foot addition as part of a broader 59,900-square-foot renovation of the nearly 50-year-old facility.

The reimagined Boulder Creek building will feature state-of-the-art learning environments, including a nursing simulation hospital for immersive training, modern classrooms, collaborative learning spaces, a teaching kitchen for nutrition and culinary-based health programs, a veterinary teaching hospital with specialized instructional areas, and a dental teaching clinic equipped with advanced simulation technology.

Courtesy Auraria

[TakeFive]

Housing Affordability?

I happen to come across this:

Builders Push for Temporary MHA Fee Break to Spur Housing Starts
April 13, 2026 By Doug Trumm -- The Urbanist (Seattle)

A coalition of builders is seeking reforms to Seattle's Mandatory Housing Affordability program in hopes of aiding a sputtering housing sector, which they portray as at risk of lurching to a halt. The Seattle Housing Roundtable, as the group of nearly 30 developers calls itself, is urging policymakers to pass a deep reduction in housing fees for a duration of three years.

AI Overview

Denver's Expanding Housing Affordability (EHA) policy requires new residential developments of 10 or more units to designate 8% to 12% of units as affordable (or 15% in high-cost areas) for 99 years. Developers must target income levels between 60% and 90% of the area median income (AMI). The policy also mandates linkage fees for commercial developments.

Note -- RiNo Randy mentioned (above) the incentive offered to builders in specific areas that for adding affordable units they can gain additional height for their project. (Normally) Incentives are a good thing. One can take it or leave it but it provides a builder additional density allowances.

The well-intended affordable requirements that Denver City Council passed as too often the case can backfire. Given the current market conditions the city should just get rid of all those requirements - instead of just modifying dates etc. All that Red Tape just adds to the cost and difficulty in a market that is struggling to make any new project pencil. (As often said) it's a great example for "The Law of Unintended Consequences."

Postscript: An additional drawback is that the City of Denver is just helping to stimulate new construction in the suburbs. Go suburbs.

[TakeFive]

I like the 'early' thinking for the Denver Pavilions

‘Close this chapter:’ The future of Denver Pavilions is taking shape
Apr. 17, 2026 By Paolo Zialcita -- Denverite

The parking lots by the Denver Pavilions could become a public plaza that anchors renewed retail and over 1,000 units of housing. That’s the vision proposed for the struggling mall by a panel of experts on Friday, anyway.

The ten-person panel met over the course of a week and presented its initial findings on Friday at the Denver Post building auditorium.

I feel that contracting the Urban Land Institute to study this sticky wicket was a good idea.

The Urban Land Institute, a national real estate and land use consulting firm, is carrying out the early planning for the project. Members of the panel had one major takeaway.

"Close this chapter and start the next,” said Kristen Morris, the president of Atlanta-based developer Morris & Fellows. The panel recommended that the future of the Pavilions focuses on residences and open space. In the proposal, the parking lots behind the mall on 15th Street would be turned into a public plaza, with the cinema building being retained for retail, restaurants and performance space. The panel recommended demolishing other parts of the mall.

The full report is expected to be published and delivered to the city in the next two months.

[TakeFive]

It appears that this year's legislature is trying to out-do the Trumpster when it comes to 'throwing things against the wall.'

Bill that makes it illegal for drivers to obstruct a bike lane in Colorado headed to Gov. Polis’ desk
Apr 17, 2026 By: Óscar Contreras -- Denver7 News

HB26-1237 not only makes it illegal for drivers to stop, stand or park a vehicle on bike lanes, but it also replaces statutory language related to traffic collisions from “accident” to “crash”

The term 'crash' instead of 'accident' is a 'distinction without a difference' but it is an ideological win for the urban left - at least in their minds.

What could possibly go wrong?

• Will this motivate some municipalities to forbid bike lanes in their jurisdiction.
• Who will enforce this; what if a municipality declines to enforce this new 'law' is the state prepared to hire their own 'enforcers?'
• Will this even pass state 'constitutional' muster?

Lone Tree accuses state of overreach on local land‑use decisions
Apr 20, 2026 By Tyler Melito -- Denver7 News

The City of Lone Tree is prepared to use its Home Rule Charter to overrule state laws that limit local control over zoning, occupancy limits, and land use.

Lone Tree Mayor Marissa Harmon telling Denver7's Tyler Melito recent state laws are eroding the city's Home Rule Charter. The charter, passed by residents in 1998, acts as the city's constitution and gives the city the power to manage its own affairs.

I've never been a fan of NANNY government whether from the left or the right. It's why I really appreciate AZ's Democrat Governor to act as a barrier against the crazy stuff from the right.

[BrIced_Tea]

Don't you live in Arizona? Why do you even care what the Colorado state legislature is up to?

Maybe some of us support their attempts to make alternative forms of transit safer

[TakeFive]

Thanks for reading and your opinion

Originally Posted by BrIced_Tea

Don't you live in Arizona? Why do you even care what the Colorado state legislature is up to?

Maybe some of us support their attempts to make alternative forms of transit safer

AI Overview

Denver's Department of Transportation and Infrastructure (DOTI) is investing in over 500 projects, including nearly $1 billion for traffic calming, pedestrian safety, and transit improvements like Colfax BRT...

• Funding Boost: Denver recently secured a $576,000 USDOT grant Transportation Today for improvements on nine high-injury road corridors.
• Infrastructure Upgrades: Projects include installing medians (e.g., Federal Blvd), enhancing pedestrian signals, and adding protected bike lanes

In addition to DOTI's work, the Denver Regional Council of Governments (DRCOG) and CDOT are implementing "Safer Main Streets" initiatives to improve arterial roads.

I am NOT against safety. If you want to know what safety looks and feels like then spend a week driving around Scottsdale. They're decades ahead of Denver.

My position is that the State likely does not have the authority to pass many of the bills that have been passed. It's worth noting that Trump does the same thing and a lot of the stuff he 'mandates' are subsequently overturned by the courts.

So Like the Trumpster they're throwing stuff against the wall; but let's wait to see if the courts will agree or disagree.

Postscript: With respect specifically to biking:

AI Overview

Scottsdale has maintained its status as a top-tier cycling destination by earning a Gold-Level Bicycle Friendly Community award from the League of American Bicyclists. Recognized for its extensive, safe infrastructure—including miles of bike lanes, paths, and scenic trails—the city remains a "gold standard" for both recreational and serious cyclists.

• Elite Status: Scottsdale is among a select few cities nationwide to achieve Gold status, reflecting its commitment to safe and accessible cycling.
• Cycling Community: The area hosts popular events like the HonorHealth Tour de Scottsdale and initiatives like "Cycle the Arts".

[TakeFive]

"This dog ain't gonna hunt"

AI Overview -- Courtesy The Denver Business Journal

The Denver Downtown Development Authority (DDA) declined Revesco Properties' $29 million funding request for the 475 17th St. office-to-residential conversion. The authority cited high per-unit costs ($385,000) and a misalignment in financing, as they wanted a faster return on investment than the proposed project timeline allowed.

Despite being identified as a highly suitable building for conversion, this project highlights the financial challenges facing downtown office redevelopments, according to The Business Journals.

[TakeFive]

Colorado’s economic engine sputtering as state’s popularity takes a dive
Apr. 21, 2026 By Sarah Mulholland -- CPR News

“Colorado’s economic engine in the previous decade relied heavily on the state’s popularity as a destination for U.S. movers. This popularity is no longer reliable,” the Common Sense Institute report found.

There's not much new here that hasn't already been pointed out.

With respect to areas that are healthy and growing:

Currently, states in the south and southeast have become the fastest growing, according to the report, topped by Florida, Georgia, North Carolina, South Carolina and Texas.

I keep watching for updated economic trends. The Good News is that generally it's about Treading Water.

Colorado's Aerospace and Defense business is growing even if modestly. But that's a suburban event. Generally, the suburbs are doing well; how much of that can be attributed to the City of Denver's "business-friendly" policies is hard to know.

[mr1138]

Originally Posted by BrIced_Tea

Don't you live in Arizona? Why do you even care what the Colorado state legislature is up to?

Maybe some of us support their attempts to make alternative forms of transit safer

I mean, we are talking about somebody who has been blatantly using this forum for astroturfing for years.

Note that he still didn't answer your question about why he cares what the state legislature in a state he doesn't live in is doing.

[RiNo Randy]

Originally Posted by mr1138

I mean, we are talking about somebody who has been blatantly using this forum for astroturfing for years.

Note that he still didn't answer your question about why he cares what the state legislature in a state he doesn't live in is doing.

Kinda lost me at highlighting Scottsdale for bikes. The Phoenix metro area is one of the worst areas for urban sprawl that I've ever lived. It was bad in 2005-07 and it's worse now. Granted, there are some bight spots, like Culdesac Tempe, their expanding light rail system, downtown PHX has seen a ton of infill, but maybe lost some character between the CBD and Roosevelt Row area along the way? But I digress.

I'm also confused about all the projects that have been cancelled in the city and moved to the burbs. Maybe there is a list somewhere.

Anyhoo...from my five story rooftop in Five Points, I can currently see ten tower cranes on 9 sites. All nine sites are residential (Fox Park may be an exception initially as there is housing planned for that site). Two more will be visible shortly as two bases were set in place today at 3300 Blake St.

Recently, two new major apartment complexes opened and two hotels reopened after major renovations on East Colfax.

Demolition of the small building at 2524 Larimer began today. IMAC Building on the corner of 26th and Larimer likely soon to follow. SullivanHayes has a sign and banner on site, but no listing on their website. It appears to be a retail focused single story building. Seems a bit wasteful to me.

Lots of activity still in the GT area.

But yeah, not much really going on.

[TakeFive]

Holy Cow

mr1138 is like my biggest fan so I'm always happy to hear from him.
BTW, I'm always happy to hear dissenting opinions from my own.

Originally Posted by RiNo Randy

I'm also confused about all the projects that have been cancelled in the city and moved to the burbs. Maybe there is a list somewhere.

That's a head scratcher. If you think that is something I said you might want to reread my comment. My point is that unless you're dying to build in the City why would you put up with all the (new) requirements over friendlier places. For example, two Denver based builders have done very well by building in Castle Rock and Parker.

Originally Posted by RiNo Randy

Anyhoo...from my five story rooftop in Five Points, I can currently see ten tower cranes on 9 sites. All nine sites are residential

But yeah, not much really going on.

I am only aware of three 'market rate' apartments that have broken ground this year or recently. AFAIK, all three are using the 'old' affordability rules before they were changed except perhaps 3850 Blake.

There is ALWAYS new affordable apartment projects under construction. So long as federal LIHTC's are available that should continue. Although, the program is changing so whether they remain as popular is yet to be determined.

In addition to LIHTC's I believe the city of Denver is sponsoring (at least) one new affordable project. Also, DHA funds affordable units but now that their Sun Valley redevelopment is completed I'm not sure what else they may have going.

The only newer market rate project under construction under the updated requirements (that I'm aware of) is TCR's 578-unit two-phase development called Alexan Pena Station.

Originally Posted by RiNo Randy

Kinda lost me at highlighting Scottsdale for bikes.

That was added since the topic had been how the Legislature passed a STATE law about bike lanes. I fail to understand why Grand Junction, Durango or Sterling would benefit. Also it's yet one more unfunded mandate passed in recent years. Is the state planning on hiring a state posse to patrol bike lanes wherever they are? Obviously not.

The larger point is that it's condescending for all municipalities that feel it was highly unnecessary and questionable as to whether it won't be overturned by the courts. Nobody is fond of NANNY government.

[TakeFive]

In The News

Colorado’s downtown leaders talk historic properties, finding a niche and balancing public money with private interests
Apr. 22, 2026 By Tom Hesse -- CPR News

Note: This is NOT about the Denver/metro area. In fact the awards were given for Grand Junction’s Main Street project, the Historic Arkansas Riverwalk of Pueblo as well as projects in Longmont and Montrose. But if you're a fan of historic renovation then it's a Good Read.

Downtown officials from across Colorado gathered on Grand Junction’s Main Street this month to celebrate the things that make local economic hubs work, as Downtown Colorado Inc. held its annual awards event to recognize projects across Colorado.

“If your local community is out there using your downtown, that creates a year-round economy rather than a tourist economy,” Downtown Colorado Inc. Executive Director Kat Correll said. “It also creates a more authentic community with a real identity, and you create a sense of belonging with your people.”

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

Colorado should get used to AI data centers if it wants to keep its Space Force bases, retired general says
Apr. 22, 2026 By Dan Boyce -- CPR News

Digital mountains of information already flow through the U.S. Space Force bases in Colorado Springs and Aurora.

The underlying infrastructure processing all of that critical national security data has been built up over decades; it’s a primary reason local defense contractors expect the region’s dominance over the military space industry to continue.

That is, they say, as long as Colorado warms up to the idea of AI data centers, far from a sure thing. State lawmakers have been battling fiercely over whether to incentivize or severely regulate them.

[TakeFive]

Speaking of the aerospace and defense industry

AI Overview -- Per The Business Journals

As of April 16, 2026, the Colorado Economic Development Commission (EDC) has approved a $26.5 million performance-based incentive package to attract an unnamed aerospace and defense company—internally referred to as as "Project Hera"

• The Project ("Hera"): The firm is considering expanding in either Douglas or Jefferson counties in the Denver-metro region
• Job Types: Projected positions include cybersecurity engineers, software engineers, technicians, and administrative services.

ColoradoPolitics also covers this news

State economic officials said the expansion would help the state add jobs and support Colorado’s pivotal aerospace and defense industry. Project Hera is also considering Alabama, Florida and Pennsylvania for its expansion.

“The company is under pressure from customers to offer more competitive pricing, and the price of doing business in the other locations under consideration is lower,” Jarvis told the commissioners.

Aerospace has been one of the largest job creators in the state through Colorado’s tax incentive program.

I think they have a very good chance of keeping this company's expansion in Colorado -- but it's a competitive world out there.

[RiNo Randy]

Originally Posted by TakeFive

That's a head scratcher. If you think that is something I said you might want to reread my comment. My point is that unless you're dying to build in the City why would you put up with all the (new) requirements over friendlier places. For example, two Denver based builders have done very well by building in Castle Rock and Parker.

A head scratcher? In your response (right above this) you just claimed that "two Denver based builders have done very well by building in Castle Rock and Parker." So what do you mean?

In any case, to me, it seems that the overlay at 38th and Blake is doing exactly as intended. Several new properties have used it. Should I name them? Not to mention, there are still lots of infill opportunities within that zone, including the majority of Brighton Blvd, the Pepsi Bottling property, Denver Rock Drill, etc.

Also, some people don't seem to realize, or remember, how much Downtown Denver actually has changed in the last 20 years. So here's a reminder:

https://www.instagram.com/p/DW47blNDSnm/?utm_source=ig_web_copy_link&igsh=MzRlODBiNWFlZA==

Originally Posted by TakeFive

I am only aware of three 'market rate' apartments that have broken ground this year or recently. AFAIK, all three are using the 'old' affordability rules before they were changed except perhaps 3850 Blake.

Who cares if they are market rate or not. It's a fact that we need more housing - across all levels. We won't achieve affordable until there is too much.

Originally Posted by TakeFive

That was added since the topic had been how the Legislature passed a STATE law about bike lanes. I fail to understand why Grand Junction, Durango or Sterling would benefit. Also it's yet one more unfunded mandate passed in recent years. Is the state planning on hiring a state posse to patrol bike lanes wherever they are? Obviously not.

The larger point is that it's condescending for all municipalities that feel it was highly unnecessary and questionable as to whether it won't be overturned by the courts. Nobody is fond of NANNY government.

So cyclists in cities other than Denver don't need this type of protection?

Side note: the tower crane at Fox Park is coming down today.

[RiNo Randy]

I also forgot.

Cherry Creek falls within the City Limits of Denver.

Why hasn't redevelopment in that area slowed down? Some might also say it is accelerating.

Case in point: https://milehighcre.com/first-office-building-at-cherry-creek-west-begins-leasing/

Additionally, the 62-unit affordable condominium project at 29th and Welton is complete and looks amazing, at least on the exterior.

Ground was also broken for the Trader Joe's in Northfield.