DENVER | Main Development Thread #7

[TakeFive]

UMB Bank to Anchor BMC Investments’ Cherry Lane Project
May 4, 2026 -- Mile High CRE

UMB Bank, n.a., a subsidiary of UMB Financial Corporation, announced today its new Colorado flagship location, marking a significant milestone in its growth and future in the state. The UMB Building at Cherry Lane will serve as the anchor office building for BMC Investments‘ Cherry Lane project and is currently under construction at the corner of First Avenue and Clayton Lane in Denver’s Cherry Creek North neighborhood.

Rendering courtesy of BMC Investments

Tryba Architects designed Cherry Lane, and PCL Construction is the general contractor. Michael Hsu Office of Architecture provides retail interior and exterior design services.

The building’s exterior will be completed in March 2027, with UMB planning to move in by May 2028.

More Good News:

A top five Denver bank, UMB will continue optimizing its locations within the city and throughout the state. UMB plans to maintain a downtown location...

Their downtown office is located at 1670 Broadway.

[TakeFive]

Headed towards the Finish Line

AI Overview

Denver officials are advancing a plan to rescue stalled apartment projects, aiming to prevent a future housing shortage caused by a sharp decline in new construction. The initiative, driven by the city's Community Planning and Development department, targets 23,000 permitted-but-unbuilt multifamily units that have been frozen due to high interest rates, rising construction costs, and financing difficulties.

• Permit Extensions: The proposal allows projects with approved site development plans (SDP) on or before Dec. 31, 2025, to extend their development deadline by three years beyond the current 30-month window.
• Targeted Relief: This, as detailed in The Real Deal's article on permit extensions, aims to keep "shovel-ready" projects alive in a high-cost environment.

Common Sense Guess:

This is an overall positive but it also allows projects like Denargo Market to hit the 'Pause Button.'

[TakeFive]

Denver metro leads nation in fastest falling home values, offering buyers more leverage
May 04, 2026 By: Maggie Bryan -- Denver7 News

DENVER — The Denver metro area now leads the nation in fastest falling home values, according to the S&P Case-Shiller Home Price Index, bringing some relief to buyers and frustration for sellers.

Data from the S&P shows Denver metro home values dropped 2.2% in February compared to a year earlier — the largest decline of any metro area in the United States.

I see this as more of a "reversion to the mean."

The Colorado Association of Realtors said the decline reflects a flattening of the market after years of above-average price increases.

[RiNo Randy]

Originally Posted by TakeFive

UMB Bank to Anchor BMC Investments’ Cherry Lane Project
May 4, 2026 -- Mile High CRE


Rendering courtesy of BMC Investments





More Good News:

Their downtown office is located at 1670 Broadway.

I drove by this site today and they are hanging steel girders for the fourth floor of the office portion (pictured). Vertical construction has commenced on other aspects of the project as well.

Still a lot of demolition work to go across the street at Cherry Creek West.

[RiNo Randy]

I also drove near the Auraria Campus today.

Work is moving quite quickly on Summit House there. I wasn't aware that it is a mass timber project. At 12 stories, I believe that will be the tallest project of that type in the area.

Here is a rendering, courtesy of MSU Denver:

[TakeFive]

Nothing better than an "eyes on the street" update

Originally Posted by RiNo Randy

I also drove near the Auraria Campus today.

Work is moving quite quickly on Summit House there. I wasn't aware that it is a mass timber project. At 12 stories, I believe that will be the tallest project of that type in the area.

I think it was wong who first posted about this project and that was likely over two years ago. Over that period it's easy to lose track of projects.

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Fishing for Affordable Housing credits

AI Overview -- Credit BusinessDen

Elevation Development Group, led by the Farber brothers (Brent, Brad, and Gregg), is pivoting to tax-credit-backed projects in Denver, targeting areas near Coors Field and in the River North (RiNo) Art District.

Key Projects and Details

• Union Station North (Near Coors Field): The firm is seeking 4% tax credits for an 8-story, 70-unit income-restricted apartment complex at 602 W. 29th Ave.. The project is a joint venture with Denver-based Steele Properties and is slated for a 0.34-acre lot purchased by Elevation in 2018.
• RiNo Project: The Farbers are also planning a second project, a 6-story, 40-unit building at 3707 Walnut St. in RiNo, which is expected to seek 9% tax credits.
• Context: Brent Farber noted that while multifamily development is currently challenging, these sites are ideal for affordable housing, citing a lack of tax-credit deals in the urban core.
• Timeline: Tax credit applications are planned for the coming months, with the Colorado Housing and Finance Authority (CHFA) expected to announce selected projects in the fall

[TakeFive]

CU under contract to buy downtown office tower
May 6, 2026 By By Matthew Geiger | BusinessDen -- The Denver Post

Independence Plaza on 17th Street was last sold in 2007 for $144.5 million

One of downtown Denver’s most vacant office buildings could be sold to an atypical buyer.

Independence Plaza, a 25-story building at 1050 17th St., is under contract to sell to the University of Colorado, the school confirmed to BusinessDen Tuesday.“The University of Colorado Foundation is currently doing due diligence on the potential purchase of Independence Plaza,” Jack Finlaw, president and CEO of the University of Colorado Foundation, said in a written statement.

Independence Plaza -- 1050 17th Street



Independence Plaza has two Annex Buildings and covers the full block along the 16th Street Mall between Curtis and Arapahoe streets.

• Video Link

[TakeFive]

So you think being a Landlord is fun and easy?

AI Is Making Fraudsters Harder To Spot...
May 03, 2026 By Patrick Sisson, National Bisnow

Los Angeles landlord Michael Renkow already had a sinking feeling when one of the new tenants at his Hollywood apartment building, “Igor,” was two hours late to pick up the keys. In September 2025, Igor had applied for two separate apartments, both running $5,300 per month, and had been approved. His bank statements, proof of employment and ID had cleared.

Two days later, after his bank alerted Renkow that the cashier’s checks used to pay first and last month’s rent were fraudulent, the feeling crystallized. Renkow raced back to his property, hoping to intercept the new tenants before they moved in. He found the front door of one unit pinned from the inside and, in the other, a woman who told him that she had established residency and didn’t intend to leave.

Ultimately, he discovered that the woman paid a fee to sublease the unit from the fraudulent applicant and that no one intended to pay him rent. He had to embark on a lengthy eviction process to regain access to his property.

“I’m pretty sure I’m going to sell the building. I don’t need this at 74 years old,” Renkow, a small-business owner who owns a handful of rental properties, told Bisnow. “It’s been so much stress. I’ve been sick for seven months.”

Apartment operators have for years flagged fraudulent rental applications as a thorny problem that reaches into already thin margins and can ultimately raise costs across the board if it becomes too pervasive. In 2024, 93% of National Multifamily Housing Council members reported that they had experienced rental fraud in the previous year. Each case of application fraud costs an average of $15K to mitigate, according to Donnelly, whose organization is affiliated with the NMHC.

[TakeFive]

"The carousel never stops turning"

Cushing Terrell Expands Downtown Denver Office
May 5, 2026 -- Mile High CRE

Cushing Terrell, a national multidisciplinary architecture, design, planning and engineering firm embedded in the American West since 1938, has announced the expansion of its Denver office at 1700 Broadway to approximately 8,600 square feet, bringing more of the firm’s integrated services and expertise to clients across Colorado and the Front Range.

Reportedly that was a 20% increase in space.

AI Overview -- Credit BusinessDen

Ping Identity has renewed its lease at 1001 17th St. in downtown Denver but is cutting its footprint by nearly 40%, shrinking from 90,000 square feet to 55,000 square feet. This move, reported in May 2026, highlights the continued trend of companies reducing office space, with downtown vacancy rates remaining high.

• Building Status: The 640,000-square-foot tower is 76% occupied and owned by Franklin Street Properties Corp.

In this market 76% occupancy doesn't sound so bad; who knows what other lease renewals are ahead?

POSTSCRIPT: I'm still not 100% clear on this announcement.

AI Overview

Yes, TIAA negotiated an early termination of its lease for its downtown Denver office at 1670 Broadway. The company is closing the office three years ahead of schedule, with the lease originally set to expire in 2029. The move is part of a strategy to cut operational costs by closing the 1,000-employee space in 2026.

I had guessed that TIAA would want to 'buy out' their remaining lease term and perhaps they have done that. Not sure the above doesn't merely mean that they decided to vacate three years early. But the landlord getting money from a buyout makes more sense than waiting three years to receive all their monthly payments. TIAA presumably had no interest in trying to sublease the space.

[RiNo Randy]

As I mentioned the other day, demolition has started at Cherry Creek West.

9News felt they should post about it on Insta. And of course use a misleading headline (quite similar to when the closure of the restaurant was announced, even though they are planned to be part of the new development - SMH).

"Demolition of Elway's Cherry Creek launches the Cherry Creek West redevelopment in Denver, transforming four city blocks into residential, office, and retail spaces. Click Watch Live at the link in our bio for the latest live news and updates."

https://www.instagram.com/reel/DYFdfRICcqk/?utm_source=ig_web_copy_link&igsh=NTc4MTIwNjQ2YQ==

[TakeFive]

Things just get more and more complicated

Colorado Construction Insurance is Reshaping the Market
May 5, 2026 By January Allen, director, Fennemore Denver -- Mile High CRE

Construction insurance in Colorado is no longer a back-office consideration—it is a defining factor in whether projects pencil, proceed, or stall.

One of the most persistent misconceptions in construction is that insurance operates as a single, cohesive safety net. In reality, it functions as a layered system of policies—often with gaps that only become visible when a claim is filed.

BTW, builders/investors have many types of insurance they need and all have been escalating rapidly.

Across the industry, claims are rising in both frequency and severity. Labor shortages, increasing project complexity, and a more aggressive litigation environment are driving a new era of risk. At the same time, financial exposure is accelerating. Liability losses nationwide have climbed by tens of billions over the past decade, while construction defect claims routinely reach six figures and beyond.

This is not a small potatoes problem.

Insurance Drags Down Property Values By 17% In Climate-Sensitive Markets, Study Shows
May 06, 2026 By Ethan Rothstein, Deputy Managing Editor -- Bisnow

The effects of climate change are starting to take a toll on real estate owners where it hurts them the most: their property values.

In markets with higher risks of natural disasters, such as hurricanes, wildfires and flash floods, market values for commercial real estate are 16.9% lower than in markets with lower climate risk, according to a report climate risk data firm First Street shared with Bisnow.

This may not be that significant for Colorado/Denver except for areas vulnerable to forest fires or potential hail storms.

[RiNo Randy]

Originally Posted by TakeFive

This may not be that significant for Colorado/Denver except for areas vulnerable to forest fires or potential hail storms.

The Marshall Fire from 2021 should remind us that we are all vulnerable.

[TakeFive]

Shows how things work especially in these times

AI Overview

The Greenwood Village City Council has granted Granite Properties a three-year extension to begin construction on their planned 12-story, 325,000-square-foot office tower in the Denver Tech Center.

Extension Details: The city council unanimously approved the extension, allowing the Texas-based firm more time to secure a lead tenant before breaking ground, a necessary step due to the challenging office leasing market.
Project Background: The 325,000-square-foot project, which was originally approved in July 2023, was facing an upcoming expiration of its entitlements.
Market Factors: Despite a challenging environment, Granite Properties highlighted emerging demand for top-tier space, pointing to increased leasing inquiries in late 2025.
Timeline: While the extension provides three years, developers note that breaking ground still requires a tenant, a process estimated to take 12 to 18 months, followed by construction.

It's fair to say the DTC is not as hot as Cherry Creek but the project would be a Cherry Creek-sized building. That said there's some interest but there's also other challenges in today's market thanks to Iran War driven inflation.

[TakeFive]

Long, long time ago...

This site conducted a vigorous debate over sidewalks. That was when bunt was still active on the site. In fact bunt was among the group spearheading the sidewalk investment campaign.

Most of the controversy centered around who would be required to pay what based primarily on lot frontage. While the voter initiative passed rather easily, the the program was held up (for a few year) as they studied and made adjustments for who would be charged what.

FAST FORWARD:

Denver sidewalk replacement program's unintended, unpopular consequences;
May 7, 2026 By Brian Maass, Colin McIntyre -- CBS Colorado News

"I did nothing to cause this," homeowner says"

City-funded contractors have been moving through Denver neighborhoods, replacing sections of residential sidewalks, and leaving some homeowners frustrated. "It's the city sidewalk program, I did nothing to cause this," said Lisa Whittaker, referring to sidewalk replacement work completed on her property at 6th Avenue and Humboldt Street last fall.

"It wasn't right. I had to fork out all the money to get this fixed. Why isn't the city responding? It's a city issue," Whittaker said. "They caused it."

Talk about the classic right hand/left hand problem

Whittaker said she contacted Denver's 311 system, where an operator told her they were receiving three to four similar complaints per day. She said she was referred to multiple public works personnel, but never received a response.

It turns out many homeowners had their sprinkler systems damaged.

Right idea but apparently NOBODY was in charge or capable?

The issue of irrigation damage appears to have been anticipated. In a message sent to homeowners before construction began, the city said, "landscape restoration and potential sprinkler repairs will be scheduled within 7 days of concrete placement, weather permitting."

Does anybody at the Top know what's going on?

Nancy Kuhn, Director of Communications for DOTI, said the city is taking steps to be more responsive to homeowners like Willyard, Kayser, and Whittaker.

"I would definitely like to apologize to those folks who received information that then took them to a place where they weren't cared for right away. We're addressing that," said Kuhn.

As some, actually MANY would say: "That's the Government for you."

[TakeFive]

Any good Policy Wonks out there?

Side Topic:

It appears to me that there are two capable Dem candidates for Governor this year.

One item of agreement caught my attention:

The candidates agree a lot more than they disagree...

Neither back the state’s current approach to override local control to increase more housing. -- ( ie "zoning")

It's so nice to see that both Dem candidates can be pragmatic and respect cities rights.

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I still like Mayor Mike but I now have a NEW favorite Mayor

LONE TREE, Colo ... Mayor Marissa Harmon delivered her State of the City address Thursday touting the community's momentum.

"We are committed to being as business friendly as possible while creating different housing opportunities and making sure that we are also the safest city," Harmon said.

No wonder Lone Tree is doing so well; they do a nice job with their urban/suburban master planning which has appealed to many including businesses.

[TakeFive]

Apparently the Colorado Legislature has a new Motto

"We do our darnedest to chase business away"

AI Overview

As of early May 2026, Boom Supersonic CEO Blake Scholl has stated that the company’s primary focus (Plan A) is to double its roughly 130-person workforce in the Denver area. However, this plan is coupled with a potential relocation of the company's headquarters out of Colorado (Plan B) due to concerns over new state regulations concerning artificial intelligence.

Key Details of the Situation (as of May 2026):

The Threat: CEO Blake Scholl described the situation as: "I'd much rather be part of helping make Colorado successful rather than being one of the first to leave, so we're putting a lot of energy into that. I'm cautiously optimistic... and if not, we're going to have to go".
The Driver: A Colorado law regulating artificial intelligence is cited as a major driver for the potential move, with enforcement of the law set to begin June 30, 2026.
Alternatives: Scholl mentioned North Carolina and Texas as potential destinations.
Manufacturing vs. HQ: While the headquarters is currently in Colorado, Boom completed a manufacturing facility in Greensboro, North Carolina

FWIW: North Carolina has made a strong effort to become more business-friendly over the last decade. Yeah, it makes a difference.

AI Overview

North Carolina is strengthening its position as a top business-friendly state in 2025–2026 by fostering a low-tax environment, investing in workforce development... and enhancing site readiness for major economic developments. The state, named 2025's top state for business by CNBC, boasts the nation's lowest corporate income tax (set to drop further) and has seen record job commitments

It would be fair to add that the whole SE part of the country is considered manufacturing friendly; partly they have the supply chains to support industry.

[wong21fr]

Originally Posted by TakeFive

Apparently the Colorado Legislature has a new Motto

"We do our darnedest to chase business away"

This information is out of date. The law died in the most pervasive form and was enacted as a heavily watered-down compromise that passed with broad bipartisan support:

https://coloradosun.com/2026/05/12/colorado-ai-law-rewrite-passes/

[TakeFive]

Compare and Contrast

Going back decades the State of Washington especially the Seattle area became a hotbed for entrepreneurs, innovators and creators of economic activity.

Everyone recall the name Howard Schultz? He was the driver behind Starbucks amazing success. He was also what I would call a Classic Liberal - for that period but not relevant to today.

AI Overview

Former Starbucks CEO Howard Schultz has moved from Seattle to Miami, Florida. He and his wife, Sheri, announced the relocation in March 2026 after over 40 years in Washington state...

With respect to Starbucks:

AI Overview

Starbucks is establishing a new, $100 million corporate office in Nashville, Tennessee, aiming to house 2,000 employees over the next five years to expand its Southeast presence... While Seattle remains the global headquarters, the company is relocating select teams—including tech and sourcing—and creating new roles in Nashville.

Worth noting: The State of Washington recently passed a new "Millionaires' Tax" in March 2026. Interestingly, Washington does not have any income tax (against the state constitution) so a lot like Colorado where they create new fees instead of a new tax, Washington has been able to define their new 'wealth tax' as NOT an income tax.

As a result there has been some discussion as to whether this would create an exodus out of the state. But companies don't up and move their HQ -- but they can move employees to another location.

Previously politically inexperienced new Mayor of Seattle, Katie Wilson, was unknown by those outside of the state -- until recently. With respect to the possibility of millionaires moving out-of-state she simply stated: "Bye Bye." She is now well known outside of Seattle as various news sources had a heyday with that misstep.

In any case it will take a good decade to understand how their new "Millionaires' Tax" impacts life in the state.

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

Thanks for the Update:

Originally Posted by wong21fr

This information is out of date. The law died in the most pervasive form and was enacted as a heavily watered-down compromise that passed with broad bipartisan support:

https://coloradosun.com/2026/05/12/colorado-ai-law-rewrite-passes/

[TakeFive]

Benihana to open location along 16th Street Mall
May 15, 2026 By Max Scheinblum | BusinessDen -- The Denver Post

Benihana wants to chop it up downtown. The national Asian chain will open at 1380 16th St., according to permits filed with the city.

The spot won’t be the typical sit-down, hibachi-style operation that Benihana is known for — instead the 3,000 square feet will be home to Benihana Express, the fast-casual version that serves breakfast bowls, pastries, fried rice and hibachi platters.

Credit Max Scheinblum / BusinessDen

The newest spot will sit between Dragonfly Noodle and the recently opened Mendocino Farms on the ground floor of the 16M Building

Always learning...

I didn't realize Benihana was part of the same group as STK Steakhouse. The corporate entity is called "The ONE Group" whose HQ is in Denver. Other restaurant names include Kona Grill & RA Sushi both which have locations down here that I'm familiar with.

The ONE Group has its offices across the street at 1624 Market St.,

[TakeFive]

Struggling To Find Equity, Developers Pull Back On New Builds
May 15, 2026 By Jarred Schenke, Atlanta Bisnow

Construction starts in the national multifamily market plummeted to a 15-year low in the first quarter, and developers are expected to continue to scale back their growth plans through 2026. While there are plenty of lenders who will grant loans, investors are becoming less willing to put their cash on the line for a down payment.

In this environment, the tricky part for developers isn’t obtaining debt but finding investors willing to allocate equity to fund new projects, Geri Borger Urgo, president of NewPoint Real Estate Capital, told Bisnow.

Even in markets with less vacancy than Denver has, they are still struggling to find investors. The recent uptick in interest rates (over Iran concerns) isn't helping either.

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Harsh Real Estate Realities Await Housing Pledges Of New Generation Of Mayors
May 14, 2026 By Patrick Sisson, National Bisnow

A new progressive generation of mayors in some of the country’s biggest cities are embracing pro‑growth housing reforms as they champion tougher tenant protections... The three Democrats running New York, Boston and Seattle have shunned more moderate stances when it comes to housing policy, targeting affordability through increased funding and more flexible zoning while holding firm on regulations.

“They want development, so they’re looking at expanding development opportunities, but they continue to crush operations through more rigorous tenant protections,” said Sean Flynn, board president and executive director of the Rental Housing Association of Washington.

I have this gnawing feeling this will not have a happy ending. These cities are likely to face foreclosing on projects with a boatload of deferred maintenance. The lenders won't foreclose; they don't want to inherit all that deferred maintenance.

The classic "Be careful what you ask for."