DENVER | Main Development Thread #7

[CherryCreek]

Originally Posted by PLANSIT

Looks to be 476'.

Pretty awesome.




Nice webpage too.


http://www.block162.com/

[Stonemans_rowJ]

And this discrepancy between median wage and median home price will only be exacerbated with mortgage rate rise.

A 1% rate increase is a drop of 10% purchasing power. That and the absolute tidal wave of vacant rental units coming. 2018 should be interesting.

[TakeFive]

Originally Posted by enjo13

Out of state companies are in Colorado to bargain shop.

Congrats and best of luck. We'll miss your tech/urban insight.

Speaking of bargain shopping same applies to Phoenix. But it appears that given the state's $billions in ASU STEM investments that they're looking more for new grads. But some Bay Area companies are now opening up satellite offices to nurture new graduate tech talent at a bargain-shopping price.

Originally Posted by CherryCreek

For the many residents that have owned property here before the current boom, there's been an increase in paper wealth, but no real increase in cost of living (other than real property taxes).

Great comment; you covered the landscape well.

Speaking of paper profit... I got a kick out of the O&G guy who cashed his paper equity and moved back to Oklahoma and bought a ranch, got out of O&G and is making less but very happy and sassy.

[CherryCreek]

Originally Posted by Stonemans_rowJ

And this discrepancy between median wage and median home price will only be exacerbated with mortgage rate rise.

A 1% rate increase is a drop of 10% purchasing power. That and the absolute tidal wave of vacant rental units coming. 2018 should be interesting.

Very true. Many economists expect the massive tax cut to drive interest rates sharply higher and possibly inflation too. Wish i had a crystal ball to see where Denver rental and residential real estate will be in 36 to 48 months.

[TakeFive]

Originally Posted by rds70

It looks like Denver will have another office tower rising soon. The permit for Block 162 was submitted today:

As a side note, this article in the Colorado Real Estate Journal states that 1144 15th Street is 90% leased: https://crej.com/news/1144-fifteenth-birth-denver-icon/

90% pre-leased; that is impressive. I was hoping to hear something soon about Block 162 and 90% @1144 had to have been a nice assist.

CherryCreek
Thanks for the render reminder.

[DenverPoke]

Originally Posted by enjo13

I'm one of those.. a couple of days ago I moved to California. The reason isn't the high prices in Colorado (which aren't that high). It's that I quite literally doubled my salary to move here.

Colorado has a big labor issue. Prices are rising, but wages have barely budged. Since there are so few big economic anchors there is no one willing to pay for talent. Out of state companies are in Colorado to bargain shop. The lack of high earnings companies from the state means there just isn't much upward growth, despite very low unemployment. Companies simply do without rather than enter into a competitive labor market.

I hope it changes soon. Denver badly needs a homegrown economic power.

Congrats and best of luck! You are spot on with your analysis.

I will be moving in 2018 as well, more for family reasons but the influx of people and traffic issues were also a deciding factor. I honestly can't even fathom moving to Denver now unless you are making close to six figures, and even that probably isn't quite enough to really live comfortably.

[TakeFive]

Originally Posted by CherryCreek

Wish i had a crystal ball to see where Denver rental and residential real estate will be in 36 to 48 months.

Happy to help.

I caught a part of the Larry Kudlow radio show and one of his guests suggested that since the corporate tax cut is delayed until 2019 that companies will be investing next year so as to take advantage of next year's still higher tax rate on their accelerated depreciation.

FWIW, Goldman Sachs suggested a three-tenths percent bump in 2018 GDP.

[PLANSIT]

More development news:

Site Address and Description
1250 Welton St - 2017PM0000600 - Emily Griffith Opportunity School Hotel Adaptive Reuse

[BG918]

Originally Posted by DenverPoke

Congrats and best of luck! You are spot on with your analysis.

I will be moving in 2018 as well, more for family reasons but the influx of people and traffic issues were also a deciding factor. I honestly can't even fathom moving to Denver now unless you are making close to six figures, and even that probably isn't quite enough to really live comfortably.

The people I know buying in central Denver are in two camps: either they have really high paying jobs (doctors and financial/tech executives) or they have family money/inheritance. The later is very common in neighborhoods like Wash Park.

[CherryCreek]

Originally Posted by BG918

The people I know buying in central Denver are in two camps: either they have really high paying jobs (doctors and financial/tech executives) or they have family money/inheritance. The later is very common in neighborhoods like Wash Park.

There's probably at least one other category buying:

People moving here from areas with values equal to or higher than Denver, where they sold their prior home at a tidy profit and are putting the money into a new home here. My neighbors moved here from Los Angeles area and were pleasantly surprised how cheap it is! I wouldn't be surprised if they paid 50% or more down.

[bunt_q]

Originally Posted by PLANSIT

Looks to be 476'.

Has anyone heard anything about the hotel piece?

[TakeFive]

Originally Posted by mr1138

I've recently been reading the "What's the Matter with Portland" series of essays on StrongTowns, and he makes some compelling points. I'd be interested to hear some other peoples' opinions on the matter.

All due respect... but this guy's an idiot.

It was little different from listening to Talk Radio in that from a few arbitrary truisms he chooses to connect dots that don't bcuz of other factors he chooses to totally ignore. For example, right after relating that people are moving to Portland in droves he belabors the basic demand-supply curve as if the only thing affecting demand should be price. Yet, he just finished explaining reasons why people are moving to Portland. So long as demand exceeds supply FOR WHATEVER REASONS there will be upward pressure on prices. It's truly not that hard. Common sense, if used, will often provide obvious answers.

With respect to varying zoning, Denver already has that due to reality of historical neighborhood reasons. They've also looked ahead with designated areas of stability and areas of change. BTW, Blueprint Denver is scheduled to be updated by Denveright in the Spring.

[CastleScott]

Looks to be 476'.

This one will add to the nice street wall along 15th st.

[BG918]

Originally Posted by PLANSIT

Looks to be 476'.

Is it just the office tower or is the other (apartment?) tower part of this phase of construction? At one time a large Hilton hotel was involved not sure if that is still in the works or not. If not then there are a couple remaining lots next to the Conv Center on 14th that would be perfect for a 500+ room Hilton..

[corey]

The problem with Portland... is that it is very boring. There is actually very little to do there. I know. I went to college there. I have always had family there. And I’ve lived there as an adult a few different times. My parents also live south of there in Corvallis, which is a nice, pretty sleepy, college town. When we’re visiting my parents, my 15 year old son and I usually go to Portland. We are always bored after about 2 hours and leave to go back to Corvallis.

[mhays]

That's a new one! Or maybe it's that Portland is built around young adults, and going with a teenager limits what you can do.

[jubguy3]

Originally Posted by TakeFive

Colorado must be at the epicenter of End Times rumors as people are scurrying to get out of state in record numbers.
-- According to the Denver Post.

This is full of so many levels of meta-smug that I don't know if I'm reading a written Portlandia sketch or something. It definitely sucks for native coloradans but sometimes I feel some of them whine just to whine about good problems...

"Waah!!! A 10th restoration hardware opened up within a mile radius of me and now my Tesla doesn't know which one to drive to. Living in colorado sucks (("

[PLANSIT]

Originally Posted by BG918

Is it just the office tower or is the other (apartment?) tower part of this phase of construction? At one time a large Hilton hotel was involved not sure if that is still in the works or not. If not then there are a couple remaining lots next to the Conv Center on 14th that would be perfect for a 500+ room Hilton..

Just the office portion.

I believe phase 2 (possibly hotel) is still a work in progress. Much more complicated with historic building and 16th St. Mall.

I think everyone missed the significance of my earlier post regarding the Emily Griffith redevelopment submittal. Long rumored to be a second convention center hotel.

[CherryCreek]

Originally Posted by PLANSIT

Just the office portion.

I believe phase 2 (possibly hotel) is still a work in progress. Much more complicated with historic building and 16th St. Mall.

I think everyone missed the significance of my earlier post regarding the Emily Griffith redevelopment submittal. Long rumored to be a second convention center hotel.

I saw that on the Emily Griffith, and you are right, the last rumor was a mega hotel. For Block 162, I wonder if condos now make more sense that a huge hotel, particularly if a second convention center hotel is going up at EG. The building in the conceptual drawing looks like it would make great condos!

[mojiferous]

Originally Posted by jubguy3

It definitely sucks for native coloradans but sometimes I feel some of them whine just to whine about good problems...

There are a few of us (mostly those of us that actually grew up in Denver) that are happy about the growth, mostly because we remember how boring/dangerous it was to live in Denver in the 90s, and how many now-popular neighborhoods were full of sketchy crack houses and abandoned buildings.

Every time some relative newcomer frets about how scary 16th has gotten I relate the story of how I left work at 6pm on a Tuesday in 1997 only to see a huge street fight and shooting happening in front of the Taco Bell on California - and that it was so un-extraordinary that it didn't even make the news. Or I tell them how the Union Station neighborhood was an empty field where the beheaded bodies of homeless people kept turning up... But they just grasp their puffy vests and fiddle with their Subaru keys and talk about how gentrification is giving them the vapors.