DENVER | Main Development Thread #6

[TakeFive]

Originally Posted by Robert.hampton

http://www.denverite.com/denver-housing-...nd-market-rate-private-developers-24449/

DHA has quite a few parcels under contract. Both at beendict park are for-sale condos.

That's a very good article by Adrian D. Garcia and dovetails nicely with the Erica Meltzer piece about Sun Valley that I linked to earlier as they'll be following the same template there.

Adrian does a splendid job of explaining how they redeveloped the old Denver slums including East Village and Mariposa, etc. IIRC the new philosophy of more mixed housing, market rate with different levels of affordability came from the R side of the aisle in collaboration with Dems during the GW Bush administration. Learning from past disasters, they hoped to create a better "mousetrap" going forward. Fortunately when they rolled out the Hope VI program funding, Denver/DHA was ready to go; they had shovel-ready plans. The results have been so impressive, they've done a phenomenal job, IMO.

EDIT: Appears that Hope VI funding originated under Clinton and was formalized in 1998 and picked up speed in the 2000's.

[mhays]

Originally Posted by TakeFive

^ Not a total justification and mhays can confirm but the buildings in Seattle are, I assume, high end apartments. Arapahoe Square is on course to be a bit more affordable area of downtown. With construction costs moving ever higher and material costs likely to follow as everything seems to be enjoying a Trump bounce this definitely is a benefit for developers... which I assume was the point of mhays' affection.

No, that's one of our three condo projects in recent years. We have an issue similar to Denver's regarding liability. The main difference I'm aware of (not knowing the nitty gritty of the laws) is that our prices are high enough that a few buildings have made sense so far. In this case the average sale last year was I believe over $800/sf. That overcame a land price at $550/sf that was straospheric back then ($71,000 per unit) but less than half of today's values. The other advantage is that all three projects have sold homes during construction rather than beforehand, so they get much higher prices.

I attended a multifamily developer/broker forum last week, and the last panel got into politics a bit. The most common feeling was that Trump could have a sizeble if unpredictable effect on the offshore (heavily Chinese) money behind much of our local development, many of our home buyers, and the immigration (and renters) we reply upon more much of our tech industry.

As for cost escalation, that's a big worry for developers. One of them worded it perfectly...no matter how high rents go, projects continue to barely make sense.

[TakeFive]

Originally Posted by mhays

No, that's one of our three condo projects in recent years. We have an issue similar to Denver's regarding liability. The main difference I'm aware of (not knowing the nitty gritty of the laws) is that our prices are high enough that a few buildings have made sense so far. In this case the average sale last year was I believe over $800/sf. That overcame a land price at $550/sf that was straospheric back then ($71,000 per unit) but less than half of today's values. The other advantage is that all three projects have sold homes during construction rather than beforehand, so they get much higher prices.

I attended a multifamily developer/broker forum last week, and the last panel got into politics a bit. The most common feeling was that Trump could have a sizeble if unpredictable effect on the offshore (heavily Chinese) money behind much of our local development, many of our home buyers, and the immigration (and renters) we reply upon more much of our tech industry.

As for cost escalation, that's a big worry for developers. One of them worded it perfectly...no matter how high rents go, projects continue to barely make sense.

Thanks for the clarification; great comment.

Last Saturday I happen to catch the Larry Kudlow radio show. Larry was one of Trump's economic advisers during the campaign. Anywho, he had a couple of Chinese experts on that day and it's amazing how clueless Trump seems to be. China is struggling to keep the value of the Yuan up bcuz of the capital flows out of the country from individuals who have accumulated substantial wealth.

As China continues to tighten the screws on capital leaving, I read recently where many buyers of Australian property were unable to close on contracts as they couldn't get their capital out of China. I've also read where some Seattle buyers have come from Vancouver where they're now selling.

I'm making the early call; Trump Recession starts in 2nd half of 2017. Not sure Seattle will feel a thing and Denver's great diversity helps to insulate it but it will likely take some of the bloom off.

[TakeFive]

The keys to your new home will be working in January if you choose to join us at Highlands32.




Both photos courtesy of apartmenthomeliving

You might recall that Highlands32 at 3251 Lowell Blvd. was the subject of vociferous outcry from the West Highlands' NIMBY crowd. RedPeak had made the original proposal which was also a hot topic of discussion on this thread.

[TheNightfly]

I see a bulldozer knocking down that old motorboat sales building on the southeast corner of 38th and Sheridan. Anybody know what they're leveling that lot for? Here's hoping that it's not a gas station.

[TheNightfly]

Looks like Denver is finally getting a standalone CVS. Maybe we'll get a Duane Reade across the street too.

http://www.businessden.com/2016/06/29/cvs-buys-another-corner-parcel/

Will this likely be at street level?

[comoneymaker]

Originally Posted by CherryCreek

$350 Million entertainment district? WTF!! That buys a hell of lot of entertainment.

And why the Broncos? Do they own any of the relevant land? I thought this was all stadium district?

That's a really huge project that's been under the radar, apparently. Would love to know the details!

Actually that doesn't do much. A bowling alley and a movie theater can cost 100 million. Basically it their plan to push out the low income individuals living in the projects near by. POS Hancock is behind this.

Here is a article by Westword that I didn't read cause they suck.

http://www.westword.com/news/inside-351-...-valley-around-mile-high-stadium-8592047


And when did this area start getting called "Sun Valley" ? All these A-holes moving here and calling area's what they want to make their little hipster craphoods.

[wong21fr]

Originally Posted by comoneymaker

And when did this area start getting called "Sun Valley" ? All these A-holes moving here and calling area's what they want to make their little hipster craphoods.

Since at least the 1970's when the public housing project was built there. Where the hell have you been?

[Robert.hampton]

http://www.businessden.com/2016/12/13/n-y-hotelier-nabs-historic-uptown-school-for-7m/


catholic school at 19th and Grant, along with the parking lot on Logan have been bought up by hotel developers. Based on the developers it looks like hotel will aim to land on the oxford/crawford end of the spectrum.

[mojiferous]

Originally Posted by comoneymaker

Actually that doesn't do much. A bowling alley and a movie theater can cost 100 million. Basically it their plan to push out the low income individuals living in the projects near by. POS Hancock is behind this.

DHA is replacing the only-low-income projects with mixed-income developments, like they did in Curtis Park, by Benedict Fountain Park, and Lincoln Park. Like many cities have done over the last 25 years because they realized that isolating low-income residents hurts more than it helps. And DHA is fairly independent from the city, as most of their development happens on land they own and not all of their budget comes from Denver.

They want an entertainment district because it gives the neighborhood a potential economic anchor, not to purposely push anyone out.

[CherryCreek]

Originally Posted by Robert.hampton

http://www.businessden.com/2016/12/13/n-y-hotelier-nabs-historic-uptown-school-for-7m/


catholic school at 19th and Grant, along with the parking lot on Logan have been bought up by hotel developers. Based on the developers it looks like hotel will aim to land on the oxford/crawford end of the spectrum.

Be interesting to see if they redevelop the school or scrape it.

[ddvmke]

Pretty huge announcement today regarding the Riverview building in the Platte Street corridor, and Denver's business scene in general. Glad they chose an area near downtown.

http://www.denverpost.com/2016/12/14/bp-denver-headquarters/

[RyanD]

Originally Posted by ddvmke

Pretty huge announcement today regarding the Riverview building in the Platte Street corridor, and Denver's business scene in general. Glad they chose an area near downtown.

http://www.denverpost.com/2016/12/14/bp-denver-headquarters/

TL;DR - It's BP and the Denver Post comments are HILARIOUS (at least on Facebook).

[Robert.hampton]

Originally Posted by CherryCreek

Be interesting to see if they redevelop the school or scrape it.

It looks like the MO of the developer who purchased it is to renovate old buildings and turn them into hotels, so my guess is that it stays.

[RyanD]

I've slacked on sharing stuff lately, sorry. Here's the inside / final update for 1401 Lawrence:

1401 Lawrence Final Update

Interiors:












Views:















Exteriors:
(from the Fall)

















(current photos)

[EngiNerd]

Originally Posted by CherryCreek

Be interesting to see if they redevelop the school or scrape it.

Isn't this building historic? Could they even scrape it if they wanted to?

[fleury]

Originally Posted by EngiNerd

Isn't this building historic? Could they even scrape it if they wanted to?

The historic building will be saved and a new building will be built on the adjacent parking lot. So rest easy!

[Agent Orange]

Thanks Ryan! You're doing a huge service in giving the rest of us no reason to lug our cameras downtown. My back appreciates it!

I especially like the shot towards Pikes looking down Lincoln Park/Santa Fe. Can't recall seeing that perspective before.

[mr1138]

It looks like the seller is the same firm that we heard reports a few years back wanting to turn it into co-working space. At the time, it was seen as a historic preservation win since it was a change from the previous owners' plan to raze the site and build apartments. I just refreshed myself with a Google search this morning, and it looks like they had planned to register the building on the National Register of Historic Places.

While it sounds like the plan is still to renovate the building, I couldn't help but notice that there was never any action taken on the Historic Register part of things. I assume that all the parties involved are still interested in this, but it is interesting that this legal action was never taken after all of the fuss about the building "being saved."

Here is one article I found that is a good refresher on the recent history of this site.

[TakeFive]

Originally Posted by fleury

The historic building will be saved and a new building will be built on the adjacent parking lot. So rest easy!

Thx - Guessing they make it an AC