DENVER | Main Development Thread #7

[TakeFive]

Lo and Behold

Both the homeless and affordability issues are being addressed.

Hotel along Park Avenue comes down to make way for apartments
June 5, 2026 By Thomas Gounley -- BusinessDen

AI Overview

In a major push to combat homelessness, the old La Quinta Inn (and former Old West Pancake House) at 3721 N. Globeville Road along the Park Avenue area is being demolished to make way for the Park Avenue Apartments, a 60-unit permanent supportive housing development spearheaded by the Colorado Coalition for the Homeless.

The project marks a significant step forward in redeveloping aging motels into vital housing infrastructure for the Denver community. Because the goal of the facility is to help residents transition out of homelessness, the complex will integrate built-in support services on-site.

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Denver set to buy old state office in Capitol Hill, the first affordable housing project funded by Vibrant Denver
Jun. 03, 2026 By Paolo Zialcita -- Denverite

Denver City Council approved the $4.5 million purchase of a former state office building in Capitol Hill on Monday evening, paving the way for the first affordable housing development to tap the Vibrant Denver bond package.

251 E. 12th Ave.


Courtesy LoopNet

Pretty Interesting

After the sale is closed in early June, the city will then issue a request for proposals for developers to turn the site into affordable housing. Depending on the winning proposal, the former Colorado Department of Labor and Employment building could be converted to residential use, expanded or demolished.

[TakeFive]

Affordability in the Suburbs

Modular Apartment Community Aims to Fill “Missing Middle”
May 19, 2026 -- Mile High CRE

Consolidated Investment Group (CIG), a leading-edge real estate investment company ... is ready to break ground on a new, 360,000-square-foot multifamily property in Centennial that will include 329 new apartment units. The property... will provide renters with rent rates that will be discounted 10 to 15 percent, based on the modular construction and direct material sourcing of the apartment units.

9201 E. Dry Creek Road


Courtesy CIG

Nice sized units:

Fabrication of the modules is now underway at an off-site factory, and CIG intends to start setting the first modules this fall. Of the 329 units, 33 will be studio apartments that average 500 square feet, 216 one-bedroom units averaging 760 square feet and 80 two-bedroom units with an average size of 1,100 square feet.

[wong21fr]

Originally Posted by mr1138

YThis is a philosophical question and not an urban planning one. All I will say is that those of us who care about the lives of people experiencing homelessness at all seem to be in the extreme minority.

If that was true, we as a city wouldn't have have backed the acquisition and repurposing of hotels as noncongreate shelters (~$180M), approved tax increases to address homelessness, affordable housing, and mental health services (~$80-120M/year), and consistently rank it as one on the most pressing issues affecting the city.


People look at this allocation of funding and ask if the reduction has been sufficient compared to the financial outlays (I would say it's been worth it). But there's also the debate on what restrictions there should be to curtail the visibility of homelessness. You have organizations such as Housekeys and Mutual Aid Monday that ultimately want to repeal the camping ban and other restrictions on resting in public spaces while others advocate for furthering involuntary institutional confinement for those who are suffering from mental illness.


I don't think these elements reflect a reality where only an extreme minority care about the issue.

[wong21fr]

Another project breaks ground on the Auraria Campus:


Auraria breaks ground on apartment building in campus first

The campus broke ground on an $80 million residential tower Thursday morning at 10th and Walnut streets. The 7-story building will hold 176 income-restricted apartments with an early learning center on the ground floor.

-The apartments will be restricted to those making between 60% and 100% of the area median income, with the average unit clocking in at 89% AMI. It’s the first apartment building on campus that will be open to the public.

-The current early learning center at Ninth and Colfax will be relocated with 30% more space in the new building, allowing it to take in more children off the waitlist. The additional room will also allow for drop-in daycare services, convenient to the parent visiting campus for class or coursework. Other new features, like two-way windows, will help students who use the space for their education studies.

-It will be renamed the Merage Early Learning Center, thanks to a donation from the David and Laura Merage Foundation. Atlanta, Georgia-based Columbia Ventures is the developer.


-Last year, MSU Denver broke ground on a residential tower of its own next door. That 12-story building includes 550 beds for students, ground-floor retail and a 25,000-square-foot student-serving “classroom-to-career hub.” It will be the tallest building on campus once completed next summer. The site where both of the towers are being built is on MSU Denver’s old baseball field.

-And just last month, the campus broke ground on a new police station.

-$420 million of development is happening on campus. That includes a new MSU Denver health tower, which will help the school take in more nursing students.

IIRC, Auraria campus staff who meet the income qualifications get first preference for this building.

Between this building, CU Denver's student housing, and Metro's student housing this easily adds at least 1,500 people living directly on the campus. In addition, Auraria is also looking at developing additional workforce housing on a parcel that they own which is located across the Auraria Parkway that's currently a Ball Arena parking lot.

[RiNo Randy]

Originally Posted by TakeFive

The Denver Business Journal just opened up this Can of Worms

KNOCK DOWN, DRAG OUT
Jun 4, 2026 By Catie Cheshire – Reporter, Denver Business Journal

AI Overview

I'm all for knocking down buildings that can't economically be repurposed. I'm also excited for the Luzzatto Company's conversion of two existing office buildings and possibly two more.

But the stupid Trump Economy isn't helping.

Bond Market Turbulence Saps CRE Momentum
June 03, 2026 By Matt Wasielewski, National

I'm very much opposed to this.

We've seen this movie before.

Buildings downtown get demolished. Developers/groups leading this effort run out of money. We get rewarded with empty lots downtown. Thankfully, zoning was changed in the 1990s so that they can no longer just be converted into surface parking lots.

It looked like this in 1976:



Here's a bit of an older story on that: https://denverite.com/2017/05/17/destruc...lodo-three-images-skyline-urban-renewal/

Now, if there is a demolition with a replacement ready to roll, let's talk.

[TakeFive]

Apples to Oranges (Part One)

Originally Posted by RiNo Randy

I'm very much opposed to this.

We've seen this movie before.

Buildings downtown get demolished. Developers/groups leading this effort run out of money. We get rewarded with empty lots downtown. Thankfully, zoning was changed in the 1990s so that they can no longer just be converted into surface parking lots.

Here's a bit of an older story on that: https://denverite.com/2017/05/17/destruc...lodo-three-images-skyline-urban-renewal/

Now, if there is a demolition with a replacement ready to roll, let's talk.

BTW, that piece by Andrew Kenney in Denverite was well written. I've always been a BIG fan of Andrew Kenney's writing ever since he arrived on the scene.

Also, for us long-timers we're all familiar with DenverInfill which also had great coverage of the Urban Renewal disaster.

My Memory

My memory goes back to the late 1970's / early 1980"s. Denver hit the Jackpot as that was a period of Booming Oil & Gas business and downtown development. I used to drive downtown on Sunday's and look through my open sunroof at all the cranes building all those skyscrapers.

Then they changed the Federal Tax Laws and the Boom went Bust within months. We used to describe downtown office buildings as being "See-through" because nobody had moved and put up window coverings. So many people just packed up and moved out-of-town.

Before long HUD and VA had tens of thousands of vacant homes they needed to sell. They both auctioned off big numbers of houses in blocks as well as selling them one-by-one.

Into the 1990's Denver stabilized but healed very slowly. I still remember selling a nice home in Highlands (original woodwork etc.) for ~ $91,000.

[TakeFive]

Apples to Oranges (Part Two)

AI Overview

The "apples to oranges" fallacy refers to false equivalence or a false analogy. It occurs when someone compares two inherently different things as if they are logically interchangeable, usually by focusing on superficial similarities while ignoring major, underlying differences

There's no comparison, really, between what the wholesale clearing of blocks, what that looked like and the disparate removal of a few buildings located in different blocks etc.

One of the proponents of selective demolition is the Urban Land Institute (ULI). ULI has been around since 1936; they are an urban (liberal) leaning organization.

Urban Land Instittue

The mission of the Urban Land Institute is to shape the future of the built environment for transformative impact in communities worldwide.

The world's oldest & largest global network of cross-disciplinary real estate & land use experts.

Denver is not the only city with a struggling downtown. But in Denver's case and thanks partly to Mayor Mike and others the patient has been stabilized. But the ability to fill all the 'ghost' buildings is questionable -- and you can't just let empty building sit there while continuing to deteriorate.

[RiNo Randy]

There are still several retail spaces downtown, particularly by Union Station, that haven't been built out.

I'm going to guess you'll blame that on the unhoused that created a bit of a mess there for a while.

But what is tearing down older buildings, presumably build new ones, going to help with that situation?

Same is true here in Five Points. Tons of vacant retail and office spaces. And the office space is the newer variety that everyone is seeking. Rev360 has both and is completely vacant after being completed in 2020.

I personally think that if we could somehow land some well known local tenants, it would trigger a wave of new retail spaces coming to the area. Hopefully the Gradient as well as the projects at/around 38th/Blake will trip that wire, but it would be nice to see some pre-leasing activity for those projects.

But how and when does that happen in a seemingly stagnant office/retail market.

[TakeFive]

It's Complicated

Originally Posted by RiNo Randy

But how and when does that happen in a seemingly stagnant office/retail market.

WESTWORD

If you want to follow the retail restaurant scene, Westword does a nice job. There's always a high turnover in the restaurant business and Westword does a nice job of highlighting the more significant changes. Westword is interesting; it's like they follow the "Vibes" of Denver.

The problem with Denver is Denver

Especially the Denver City Council. They have taken it upon themselves to set HIGH MORAL standards. Not to my free-market taste but they're in the Power Seats and not me.

If you want to be an entrepreneur in Denver... Best of luck. Newbies can go broke just waiting on the many permits needed before you even open the doors. Mayor Mike, aware of the issue has been wanting to expedite the process but as the saying goes you can't turn a ocean liner on a dime.

The DCC (Denver City Council) is especially fond of employees but Not fond of Employers so they jacked up the Minimum Wages. Apparently they haven't noticed that all that vacant space doesn't have any employees to pay any wages.

Edgewater Public Market

Eat, drink, and shop your way through Edgewater Public Market – Denver’s most eclectic collective of local food stalls, retail boutiques, and rotating events.

CentrePoint Properties Acquires Edgewater Public Market
January 7, 2025 -- Mile High CRE

“We believe Edgewater Public Market stands as one of the best market halls in Colorado,” said Tucker Manion, CEO of CentrePoint Properties, in a press release announcing the sale. “The LCP team has done a tremendous job with the redevelopment, creating a vibrant and inviting space for the community.”

Not the sexiest part of the city but they have experienced new development from apartments to missing middle style housing.

They, like everybody else - except Denver - has a minimum wage that matches the state minimum wage. Yes a number of businesses have made the move from Denver to Edgewater -- and they have employees getting paid.

With respect to DUS

Yes many retailers moved on due to the vagrancy, theft etc. And now that the bloom is off the rose any prospective new retailer has to ask themselves "Is this where I want to risk all my money?"

[TakeFive]

Speaking of Retail

Former Bubba Gump Property Near Colorado Convention Center Sells
June 03, 2026 By Cassidy Ritter, Bisnow

A restaurant space in the heart of downtown Denver has a new owner, one who paid less than the original asking price. Located near the Colorado Convention Center and revamped 16th Street, 1437 California St. sold Monday for $1.8M, about $700K below the asking price, according to marketing materials from NAI Shames Makovsky.

The property housed Bubba Gump Shrimp Co., a restaurant inspired by the film Forrest Gump, from 2007 to November 2025 and has sat vacant since. This was the eatery’s last Colorado location, according to Westword.

Courtesy Bubba Gump

AI Overview

Amnon Ben-Ari is a Denver-based entrepreneur and real estate investor, best known as the owner of Zanzibar Billiards Club on Larimer Street. He also recently expanded his local real estate footprint with a notable commercial property acquisition in downtown Denver.

• Downtown Real Estate Acquisition: An LLC managed by Ben-Ari purchased the former Bubba Gump Shrimp Co. building located ... near the Colorado Convention Center for $1.8 million. He plans to open a new restaurant concept at the site.

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Denver Announces $2.7M Investment for Improvements to Denver Pavilions
June 1, 2026 -- Mile High CRE

The Denver Downtown Development Authority (DDDA) will invest approximately $2.7M for capital improvements at Denver Pavilions. The improvements include technology and structure improvements to the parking garage, roof repairs, signage updates and replacing the mural along 15th Street.

The approximately $2.4M in improvements to the garage include replacing the CO2 system and fixing areas of degradation, as well as upgrading the gate and payment system which will make the entry and exit process easier for users. The technology upgrades have been implemented, and the remaining work is anticipated to begin by July and will take approximately 18 months to complete.

[TakeFive]

Rising costs putting pressure on Denver restaurants, report finds
March 4, 2026 By Shallima Maharaj -- 9News

'2025 State of Denver Restaurants Report: Challenges Facing the Sector' combines feedback from full-service, quick-service, independent, multi-unit and minority-owned restaurants. Roundtables included representation from more than 150 establishments.

The Denver Restaurant Liaison Projection was launched by Denver Economic Development & Opportunity (DEDO), Visit Denver and inKind, as a way of understanding the issues faced by restaurateurs. To do that, Cumulus, Etc., a consulting company that focuses primarily on the hospitality industry, was brought on board.

I wonder if anybody over at Denver City Council is aware of this or gives two chits.

Labor costs were noted as the 'largest and fastest-growing' expense category for restaurants, going up by around 50 to 55 percent since 2019. Another key finding was regulatory and permitting barriers.

"The overall economics of running a restaurant are extraordinarily high in Denver. Almost some of the highest really in the country," Schlegel said.

"This really was a research paper, and we were just trying to report what we found." In the end, he said their hope is that even deeper conversation is stoked from their findings. "We all really strive towards the same things - great paying jobs, great opportunities for people to develop a thriving restaurant scene in Denver...in the place where everybody wants to be," Schlegel said.

[TakeFive]

Interestingly, Retail along with Industrial are the two healthiest sectors of Commercial Real Estate

Stockdale Capital Unveils Transformation of The Shops at Northfield
August 7, 2025 -- Mile High CRE

Stockdale Capital Partners, a vertically integrated real estate investment firm, has announced a redevelopment plan for The Shops at Northfield—Colorado’s No.1 most visited open-air lifestyle and retail center located in the heart of Denver’s Central Park community.

“After listening to the metro Denver community, we saw an incredible opportunity to evolve The Shops at Northfield into a destination that reflects the way people want to live, shop, and connect today,” said Bastian Peters, co-head & managing director of retail at Stockdale Capital Partners. “We are not just reinvesting in the property—we’re investing in the future of Central Park and Northeast Denver by introducing first-to-market retail, diverse amenities, and thoughtfully designed public spaces.”

The Shops at Northfield


Rendering courtesy Stockdale Capital Partners

FWIW

AI Overview

Stockdale Capital Partners is led by Co-Founding and Managing Principals Steven Yari and Shawn Yari, who have directed the firm's massive real estate and entertainment district developments in Downtown Scottsdale since the late 1990s.

Note: Their headquarters is in Los Angeles.

[COtoOC]

I'm excited for the Northfield redevelopment. At this point there seems to be the critical mass needed for expansion. Now there are so many apartments and hotels nearby (not to mention the north end of Central Park is close to build out) that expansion makes sense.

I finally got around to walking 16th St. last week and was impressed. It was Tuesday afternoon between lunch and dinner crowds, so not all that crowded. But there were people everywhere and definitely a police presence. I only saw a couple homeless people minding their business and one guy playing guitar who appeared to have a city permit. DUS was quite busy. Overall, a definite improvement. My only complaint was that a few of the trees already could use a little trimming with branches in the way as we walked by.

[RiNo Randy]

Originally Posted by COtoOC

I finally got around to walking 16th St. last week and was impressed. It was Tuesday afternoon between lunch and dinner crowds, so not all that crowded. But there were people everywhere and definitely a police presence. I only saw a couple homeless people minding their business and one guy playing guitar who appeared to have a city permit. DUS was quite busy. Overall, a definite improvement. My only complaint was that a few of the trees already could use a little trimming with branches in the way as we walked by.

They really did do a good job with it, even though most of the work is "behind/under the scenes" if you will.

I made a similar comment about the eye-pokers on the street about a year ago. Really shouldn't trim trees while they are actively growing. I know that they are monitoring the health of the trees as one that was placed along the street between Tremont and Court and didn't survive has already been replaced. I am glad that they didn't go cheap when they picked the trees for that project. Most were about 30' tall when installed and the base of all of them is about 18-24" below the surface.

But, one of those hidden reasons why the tree canopy is growing in so nicely is due to the strata vault system that is well below the surface of the street/sidewalks.

Here is what it looks like:

And here is how it works: https://citygreen.com/product-category/soil-vault-systems/

[RiNo Randy]

Originally Posted by TakeFive

Rising costs putting pressure on Denver restaurants, report finds
March 4, 2026 By Shallima Maharaj -- 9News

I wonder if anybody over at Denver City Council is aware of this or gives two chits.

Guess who was the largest voice against changing the current tipped/regular wages at restaurants in Denver? Side note that I believe that tipping culture has long outlived it's usefulness and should go the way of the dodo bird and other extinctions.

Surprise, surprise! It was the Denver Independent Restaurant Coalition. And the issue is now dead.

Their op/ed in Westword from late April: https://www.westword.com/opinion/wage-cuts-no-solution-to-rising-denver-restaurant-costs-40876681/

insta profile if you're interested: https://www.instagram.com/denverindierestaurantcoalition/

[TakeFive]

Good to Hear

Originally Posted by COtoOC

I finally got around to walking 16th St. last week and was impressed. It was Tuesday afternoon between lunch and dinner crowds, so not all that crowded. But there were people everywhere and definitely a police presence. I only saw a couple homeless people minding their business and one guy playing guitar who appeared to have a city permit. DUS was quite busy. Overall, a definite improvement. My only complaint was that a few of the trees already could use a little trimming with branches in the way as we walked by.

June and July into August should be the best months for visitors. Interestingly, some wait until the kids are back in school before they decide to go traveling like September and October should still see people coming through.

Otherwise. it's dependent on what conventions are in town at other times of the year.

You have to assume that having 16th Street now finished, fresh and new is helping quite a bit with everybody including locals.

Interesting post and nice pictorial

Originally Posted by RiNo Randy

They really did do a good job with it, even though most of the work is "behind/under the scenes" if you will.

[TakeFive]

Tipped wages are Goofy

Originally Posted by RiNo Randy

Guess who was the largest voice against changing the current tipped/regular wages at restaurants in Denver? Side note that I believe that tipping culture has long outlived it's usefulness and should go the way of the dodo bird and other extinctions.

Surprise, surprise! It was the Denver Independent Restaurant Coalition. And the issue is now dead.

Reading that Westword piece one fallacy jumped off the page for me. They talk as if Minimum Wage = Maximum Wage.

To state the obvious perhaps

• Some places do really well, make tons of money - so long as they remain popular.
• If a business can generate a consistent lunch business they can do well enough.
• For Sports Bars, their slower times are well compensated by days when they're packed with fans on 'game day.'

The problem comes in for those businesses that are more borderline or the mom & pop types.

BTW, everybody outside of Denver couldn't care less about all the wage rationalizing. They just gonna continue to benefit from those who choose to avoid Denver.

The biggest issue remains that there isn't likely to be the demand needed to fill all the space that's available, maybe not even half of it within Denver.

Note: Especially in the suburbs fast food places benefit immensely from Drive-through service. Reportedly in Denver "drive-through's" are heavily regulated. Why am I not surprised.

[wong21fr]

Originally Posted by TakeFive

Note: Especially in the suburbs fast food places benefit immensely from Drive-through service. Reportedly in Denver "drive-through's" are heavily regulated. Why am I not surprised.

Ehhhh... they're regulated, but of the dozen or so restaurants that have gone in my little slice of Central Park in the past three years, only two don't have drive-throughs. So it's not that hard. Maybe in the Highlands, but who gives a damn about those yuppies' driving needs?

Heck, the first Chick-Fil-A in the Colorado (not sure about nationally) that a) doesn't have a dining room, and b) is open past 12P is located in Denver.

Is it a suburban hellscape? Sure. But I won't complain a bit about the substantial sales tax revenue these places collect off those suburban commuters.

[TakeFive]

Interesting Point

Originally Posted by wong21fr

Is it a suburban hellscape? Sure. But I won't complain a bit about the substantial sales tax revenue these places collect off those suburban commuters.

It's not the gas taxes but the retail sales taxes that are impressive at Quik Trips. BTW, Quik Trip is starting to roll out their new Gen 4 format in new stores -- their first redesign in 15 years.

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Still sorting a few things out

AI Overview

U.S. Bankruptcy Judge Kimberley Tyson ruled that lenders can foreclose on a 24-story downtown Denver office tower at 700 17th St.. The judge granted a relief of stay to loan trustee Wilmington Trust, effectively rejecting a reorganization plan submitted by the building's owner, an affiliate of Denver-based Toma West.

• Occupancy & Revenue: It is approximately 40% occupied and generates around $172,000 in monthly rent.
• The Financial Deficit: The property operates at a $50,000 monthly loss, which the lender has been actively covering.
• Rejection Details: Toma West's reorganization proposal sought to pay the lender $23.3 million over a 30-year span. The debtor argued that nearby office-to-apartment conversions would ultimately increase demand for their office space, an assertion the judge deemed "not credible"

[TakeFive]

AI Overview

New York City-based HLW International officially opened a Denver office to support Los Angeles developer The Luzzatto Co. on the $315 million "High Fidelity" downtown office-to-residential conversion project. The ambitious adaptive-reuse initiative will transform two distressed towers into 700 residential units and mixed-use spaces.

The expansion into the Denver market highlights a major trend in repurposing hollowed-out central business districts, with HLW establishing a local presence to help navigate the complexities of office-to-housing design