DENVER | Main Development Thread #7

[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.

[TakeFive]

Things can be confusing and it's easy to conflate stuff

Originally Posted by RiNo Randy

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.

Originally Posted by TakeFive

Housing Affordability?

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.

That to reiterate is totally different from this:

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.

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

Very Fair Question

Originally Posted by RiNo Randy

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?

I'm not aware that these builders 'canceled' projects in Denver to build somewhere else. I haven't spoken to either of them. My point was that two LOCAL builders did well outside of Denver and that others could make a similar decision and avoid the hassle of building in Denver.

Fair Point

Originally Posted by RiNo Randy

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.

I have nothing against "designated" affordable housing; in fact I'm a Big fan. But it's important to understand the differences.

I haven't typically posted about 'affordable' projects except in unique cases. That's because the interest from others has historically not been there. Of course anybody is free to post about affordable projects.

Designated affordable projects can have issues. Sometimes the quality is a bit sketchy. Sometimes the management and maintenance can be a bit sketchy.
OTOH, DHA's redevelopment of Sun Valley was very well done.

I am also a fan of market rate more affordable units as I've clearly posted.

Originally Posted by RiNo Randy

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

Why would think that cities can't handle their own business.

BTW, the State isn't going be doing any monitoring. It was an unnecessary expression of ideological egos and a waste of time.

[TakeFive]

Originally Posted by 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.

There's a wee bit of difference from Cherry Creek and the rest of Denver. It's the Scottsdale of Denver.

I also haven't posted regularly about Cherry Creek projects as many don't care. (wong as an example couldn't care less about Cherry Creek) but again anybody is free to post about Cherry Creek projects and I've covered some of them.

[RiNo Randy]

Originally Posted by TakeFive

There's a wee bit of difference from Cherry Creek and the rest of Denver. It's the Scottsdale of Denver.

I also haven't posted regularly about Cherry Creek projects as many don't care. (wong as an example couldn't care less about Cherry Creek) but again anybody is free to post about Cherry Creek projects and I've covered some of them.

Semantics.

Still within the city, so subject to same or similar rules.

I'm no fan of Scottsdale, except possibly Old Town, so that comparison means little to me.

And I'm unsure why anyone would be against this: Blocking Bike Lanes: The new law explicitly prohibits motor vehicles from occupying bike lanes, which previously had ambiguities in state statute.

[TakeFive]

Much more than mere semantics

Originally Posted by RiNo Randy

Semantics.

Still within the city, so subject to same or similar rules.

I'm no fan of Scottsdale, except possibly Old Town, so that comparison means little to me.

Not unlike Scottsdale many are more than willing, even eager to pay whatever the going price is.

AI Overview

The Cherry Creek office market in Denver is a tight, high-demand submarket. While one source indicates a very low vacancy rate of 4.7%, another recent report places the Cherry Creek vacancy rate at 12.6%, which is still significantly lower than the 38.2% vacancy in downtown Denver.

Cherry Creek is also known for its high-end retail.

Originally Posted by RiNo Randy

And I'm unsure why anyone would be against this: Blocking Bike Lanes: The new law explicitly prohibits motor vehicles from occupying bike lanes, which previously had ambiguities in state statute.

I am not aware of any cities being against "no blocking" but the State has no intentions of enforcing city bike lanes -- that I'm aware of. Some cities may choose not to strictly enforce it but that's their right to do.

I could make a case that perhaps they could block out the time between 9:00 AM and say Noon when bikers are scarce so that those that need to make deliveries to BUSINESSES would have better access during those times. But forget being business-friendly, right?

[mhays]

That's a lot of gyrations for saying "I don't care about bicyclist safety."

Don't freaking park in bike lanes, period. We're all reasonably intelligent here, right?

[TakeFive]

US DOT wants states to build more roads and take space away from bikes and give it to cars

Originally Posted by mhays

That's a lot of gyrations for saying "I don't care about bicyclist safety."

Don't freaking park in bike lanes, period. We're all reasonably intelligent here, right?

[RiNo Randy]

Originally Posted by TakeFive

Cherry Creek is also known for its high-end retail.

Are you kidding me!?!? Who knew?

Originally Posted by TakeFive

I could make a case that perhaps they could block out the time between 9:00 AM and say Noon when bikers are scarce so that those that need to make deliveries to BUSINESSES would have better access during those times. But forget being business-friendly, right?

You realize that bikes can and do utilize the bike lanes throughout the day, right? Some of them even make deliveries!

[RiNo Randy]

Is Downtown Denver Office Dead?

Well, here is another lease announcement...https://milehighcre.com/law-firm-signs-full-floor-lease-at-1801-california/

[TakeFive]

'We Don't Have Certainty Yet': Inside Denver's Affordable Housing Strategy
April 08, 2026 -- Otten Johnson Robinson Neff + Ragonetti PC -- Emily DeNardo, Studio B Writer

Note One: This article was 'sponsored' by the listed local law office.
Note Two: This concerns Market Rate apartments and not designated affordable apartments.

Twenty-five percent of renters in Colorado spend more than 50% of their monthly income on housing expenses, with the state now ranking as the third-most expensive in the U.S.

To alleviate cost-of-living concerns, cities such as Denver have enacted inclusionary zoning programs in which a certain percentage of new housing developments are set aside as affordable units.

What else is important?

But what was enacted four years ago as a tool to increase housing affordability has drawn some criticism. Critics argue that forcing developers to include affordable units in their projects can discourage new construction and potentially raise overall housing costs. Denver’s Expanding Housing Affordability Ordinance is one of the most extensive programs.

“I appreciate what folks in Denver are doing to deliver more affordable housing, but it is certainly the case that everyone I'm aware of who has had a chance to avoid complying with EHA is seeking to do that,” Peters said. “Everyone is trying to extend their pre-EHA approvals to avoid having to comply with these regulations.”

And The Bottom Line?

Peters said developers seem displeased with the policy because it hits their balance sheets. These mandatory regulations and fees also come at a time when high construction costs and elevated interest rates are affecting a developer’s bottom line — making it difficult to get deals to make financial sense. A project that doesn’t get built doesn’t deliver any affordable units, he said.

“Construction costs are the single biggest barrier right now,” he said. “They've been rising dramatically, and tariffs have added to construction costs, too.”

Increasing construction costs are as much a problem in the suburbs as in the city. HOWEVER, it's usually less expensive to build in the suburbs due to lower land costs and because apartments generally are not any more than five stories high.

[TakeFive]

Originally Posted by RiNo Randy

You realize that bikes can and do utilize the bike lanes throughout the day, right? Some of them even make deliveries!

And deliveries on bikes can not stop and block the bike lane, right?

AI Overview -- Per Denverite

Approximately 2.2% of commuters in Denver, CO, use bikes as their primary mode of transportation to work, according to 2017 U.S. Census Bureau data. ... this figure is still below the city's aspirational goal of 8% to 9% for biking and walking commuting by 2030

Postscript: Denver is very much a bike-friendly city. I found this piece from 2025.

Denver Named One of Most Bike-Friendly Big Cities in the U.S.
June 23, 2025 By Hannah Metzger -- Westword

Note: this isn't exclusive to commuters.

Denver is one of the top major cities for biking nationwide, even though it can’t crack the top ten in Colorado. That’s according to a new study from Buycycle, which named the Mile High City the fourth best cycling city in the United States for 2025.

“Known for its wide-open spaces, scenic parks, and access to mountain trails, Denver caters to cyclists of all levels,” the study concludes. “Whether you’re cruising along the city’s heart, or tackling the rugged mountain paths just outside the city, the city delivers a thrilling cycling experience.”

[RiNo Randy]

Originally Posted by TakeFive

And deliveries on bikes can not stop and block the bike lane, right?

AI Overview -- Per Denverite

Thanks for missing the point.

Maybe if you actually lived in Denver, you'd see there is much more cycling activity than reported.

But I'm sure Scottsdale is far better in some key metric that you can share related to this....