DENVER | Main Development Thread #7

[TakeFive]

Get your Zone on Denver
Time and opportunities are wastin'

I think I mentioned this previously but I can now get a little deeper into the weeds.

Hines has become one of the trailblazers in utilizing "opportunity zones" with this dandy project.

Passed seemingly as an afterthought insert into the Republican Tax Cuts and Jobs Act, interest has been low primarily because financial analysts & accountants et al didn't know what the IRS regs would be. All that has changed with the recent release of the regs by IRS. An overview of what and how easy they are to work with can be seen HERE.

Denver Business Journal's Ed Sealover wrote of the concept back in January.

The long-term impact of the 2017 federal tax reform law remains up for debate, usually in very partisan fashion. But tucked almost innocuously into that bill is a new development incentive that is just beginning to attract wider attention... Marc Schultz, a tax attorney and co-chairman of Snell & Wilmer’s opportunity zones practice group, estimated there is $6.1 trillion worth of potential eligible capital that could be put into the zones in the coming years... “To me, this is looking like a once-in-a-generation opportunity...

So what about Denver specifically?

Denver, for example, has 10 zones that encompass eight neighborhoods — Clayton, Elyria/Swansea, West Colfax, East Colfax, Northeast Park Hill, Montbello, Sun Valley and the northeast corner of Westwood. There were nearly 40 tracts that qualified under income definitions for the program, but city officials were careful to exclude from consideration areas like Globeville that remain lower-income for now but are seeing a swell of new development, chief city economist Jeff Romine said.

Some places like Portland and Houston were apparently more 'opportunistic' than Denver by finding downtown area sites. But that okay; zoom into the Sun Valley Master Plan as well as the Broncos' Stadium District Master Plan and there's plenty of opportunity to put these plans on steroids.

[TakeFive]

Opportunity Zones Part Two

https://www.bizjournals.com/denver/news/2019/01/17/colorado-opportunity-zones-investors-cities.html

It's not just real estate although that will likely be the lion's share of projects.

One of those investors is Southwest Property Corp., a company located in the Denver Tech Center that is raising money to buy a manufacturer of after-market pump parts located in Denver near Hampden and Santa Fe drives and to expand the company’s warehouse and line of products. “It’s just really gravy on top of our deals. It helps investors who have those large gains,” he said.

Don't forget Denver's Aerotropolis or maybe I should say it's good neighbor.

The developers of the proposed Porteos master-planned community — a 1,287-acre mixed-use tract just south of Denver International Airport — also are taking advantage of the incentive after Aurora designated the large open area that includes the development as one of its five opportunity zones.

Jim Howard — the CEO of Phoenix-based DV Financial Services, which is working with the Porteos landowners to try to find investors for the project — said he has seen increased interest in the project in part because of the opportunity-zone incentives, which are garnering much greater interest across the country in recent months. The increased visibility is likely to accelerate the project, mirroring a trend that Howard is seeing with other opportunity-zone projects across the country with which he is working.

So Jim, you think this is a good opportunity?

"I have not seen an economic-development incentive receive so much attention in my 20 years of experience in the space as opportunity-fund investments," Howard said.

Bill Wichterman, a partner in the Porteos project along with Phoenix-based A&C Properties and Scottsdale, Arizona-based Investment Management, noted that one of the companies that has purchased part of the property already — J.A. Green Development Corp. of Greenwich, Connecticut — did so with an opportunity-zone fund that it launched.

GOOOooooo Nuggets!!

[CastleScott]

Thanks for the today pic of Block 162 rds70.

[Fritzdude]

I’m unsure who to vote for in District 9 councilmen. Does anyone have a recommendation? Or, at least who to stay away from?

[Agent Orange]

Albus seems pretty reasonable to me. He's generally for development without erasing the district's roots. He was an emphatic yes on the recent Blueprint Denver vote. He's been quick to respond when I've sent emails on various concerns/votes.

[The Dirt]

If you want a self-avowed YIMBY, vote for Albus.

[SirLucasTheGreat]

The Pepsi parking lots at 38th and Blake are under contract. https://businessden.com/2019/05/06/4-acr...m_term=0_e8b1506f0c-07f0140df1-148090113

[laniroj]

Originally Posted by twister244

THIS.... all of this.....

I wish so badly every candidate for city council and mayor right now would all be pointing to what Minneapolis just did with their zoning as a model for how we can apply this in Denver moving forward. Unfortunately, the local political climate would never allow this to happen.

HA! Hancock has a TV ad running where one of his three statements is, "taking on developers..."

[twister244]

Originally Posted by SirLucasTheGreat

The Pepsi parking lots at 38th and Blake are under contract. https://businessden.com/2019/05/06/4-acr...m_term=0_e8b1506f0c-07f0140df1-148090113

Wow, That's quite the grab. That's not a plot I expected to be developed anytime soon as I assume it serves as parking for the Pepsi folks. Great to hear though given it just pushes this area further into TOD.

[jbssfelix]

Originally Posted by twister244

Wow, That's quite the grab. That's not a plot I expected to be developed anytime soon as I assume it serves as parking for the Pepsi folks. Great to hear though given it just pushes this area further into TOD.

I was actually just telling my wife last week driving by there that it's sad that such a large opportunity would stay as a surface lot for as long as Pepsi is there. Time to happily eat my words.

[laniroj]

Originally Posted by jbssfelix

I was actually just telling my wife last week driving by there that it's sad that such a large opportunity would stay as a surface lot for as long as Pepsi is there. Time to happily eat my words.

I go to Butcher Block Cafe on the south block of the proposed acquisition quite often and was talking to the owner several weeks back. He mentioned some developer wanted to buy his property and had even offered him a spot in the new building, no specifics on terms though. Not sure if Butcher Block parcel is in play or not, but I have my fingers crossed if they figure something out that Butcher Block can stay, I love that place! I will be sad if it goes, but I'll take 4 acres of parking lot eradication over the cafe, they can always find a new spot (though they'll need to increase their prices by 30%).

[twister244]

Originally Posted by laniroj

I go to Butcher Block Cafe on the south block of the proposed acquisition quite often and was talking to the owner several weeks back. He mentioned some developer wanted to buy his property and had even offered him a spot in the new building, no specifics on terms though. Not sure if Butcher Block parcel is in play or not, but I have my fingers crossed if they figure something out that Butcher Block can stay, I love that place! I will be sad if it goes, but I'll take 4 acres of parking lot eradication over the cafe, they can always find a new spot (though they'll need to increase their prices by 30%).

That place has the best french toast in the universe......

[jama]

This article is a few weeks old but I don't think it ever came up for discussion on this board and I'm generally curious what all you urbanism, planning, and architecture buffs think.

https://businessden.com/2019/04/29/greyhound-hopes-to-move-denver-operations-to-union-station/

On one hand I'd be thrilled to see this full city block developed with a MASSIVE new project. On the other, I have real concerns about the impact Greyhound customers would have on Union Station and the neighborhood while they hang around hours or sometimes even a full day for connecting buses. I'm pretty sure you all understand where I'm going with this... Does anyone else care about this issue one way or the other? I'd love to hear your thoughts.

[twister244]

Originally Posted by jama

This article is a few weeks old but I don't think it ever came up for discussion on this board and I'm generally curious what all you urbanism, planning, and architecture buffs think.

https://businessden.com/2019/04/29/greyhound-hopes-to-move-denver-operations-to-union-station/

On one hand I'd be thrilled to see this full city block developed with a MASSIVE new project. On the other, I have real concerns about the impact Greyhound customers would have on Union Station and the neighborhood while they hang around hours or sometimes even a full day for connecting buses. I'm pretty sure you all understand where I'm going with this... Does anyone else care about this issue one way or the other? I'd love to hear your thoughts.

I can definitely understand the concern there. Although I feel like US can handle it since they are already dealing with grifters constantly trying to make a space there. Luckily the security folks are abundantly placed, and don't allow tolerate much.

[wong21fr]

Originally Posted by jama

On one hand I'd be thrilled to see this full city block developed with a MASSIVE new project. On the other, I have real concerns about the impact Greyhound customers would have on Union Station and the neighborhood while they hang around hours or sometimes even a full day for connecting buses. I'm pretty sure you all understand where I'm going with this... Does anyone else care about this issue one way or the other? I'd love to hear your thoughts.

I'm pretty confident in RTD transit security to maintain the environment in and around Union Station. The areas is heavily patrolled, more so than the Greyhound bus terminal, and I think you would probably see the rate of incidents go down as the Greyhound passengers are subject to higher rates of security. Union Station also has experience with transient populations, which is pretty evident if you ever walk through the Great Hall in the morning in winter, and if hasn't taken away from the environment. An ancillary benefit would be the addition of some reasonably priced retail in the Bus Terminal so you could get things like a Snickers, cigarettes, or a Pepsi instead of the overpriced — that the now-closed convenience store was hawking.

[TakeFive]

Originally Posted by SirLucasTheGreat

The Pepsi parking lots at 38th and Blake are under contract. https://businessden.com/2019/05/06/4-acr...m_term=0_e8b1506f0c-07f0140df1-148090113

Like father, like son.

Not a surprise that Ron would stay involved in the Denver market. The last of Dad's portfolio was sold off in 2012, interestingly to BMC.

Monday marked the end of an era, as the last apartment building in Kal Zeff’s Carmel Cos. portfolio sold for $40 million. BMC Investments LLC of Denver bought the Spyglass Hill Apartments, 7100 E. Mississippi, for $69,808 per unit.

A team of CBRE Group Inc. brokers... represented Carmel. It took the team less than 20 months to sell the portfolio, which included more than 8,000 units in 28 complexes. At the time, it was billed as “largest multifamily offering in the nation.” Industry experts put the price tag for the whole portfolio near $900 million.

“This really does mark the end of an era,” said BMC’s Matthew Joblon, CEO. “The guy was just epic. He molded the real estate landscape in Denver. We look forward to carrying on his legacy.”

Actually, Carmel has been involved in the metro area for awhile but it's nice to see their continued interest. They're currently building the Wellington Apartments at Colfax and Osage. They previously built the Westend on Rockmont Drive.

[TakeFive]

Originally Posted by wong21fr

I'm pretty confident in RTD transit security to maintain the environment in and around Union Station. The areas is heavily patrolled, more so than the Greyhound bus terminal, and I think you would probably see the rate of incidents go down as the Greyhound passengers are subject to higher rates of security. Union Station also has experience with transient populations, which is pretty evident if you ever walk through the Great Hall in the morning in winter, and if hasn't taken away from the environment. An ancillary benefit would be the addition of some reasonably priced retail in the Bus Terminal so you could get things like a Snickers, cigarettes, or a Pepsi instead of the overpriced — that the now-closed convenience store was hawking.

Agreed. Little difference from those who take Amtrak.
Yup, transients, homeless and drug abusers would be the concern, not those wanting cheaper transportation.

Shoot, even when I took Bustang into the mountains there were Hispanic (workers), foreigners and me. And when I got caught in a downtown downpour, I spent time in the Greyhound station; glad I did being the people watcher that I am. Downtown Denver has an enormous need for lower wage workers who grease the economy. That's been forever a primary function of transit, to offer lower cost transportation.

[HighSt.]

Originally Posted by jama

I have real concerns about the impact Greyhound customers would have on Union Station and the neighborhood while they hang around hours or sometimes even a full day for connecting buses. I'm pretty sure you all understand where I'm going with this...

I know exactly where you're going. Your attitude reeks of classism and class anxiety.

Because of price points and private security, Union Station belongs to a certain clique: college-educated, white collar people who can afford to drop $100 on an oyster dinner because they make in the high five or low six figures a year.

A middle-aged gentleman is behind my building in Capitol Hill right now with a small bike-driven rickshaw scavenging building materials out of a dumpster that were tossed aside by contractors. If he wanted to take a trip, he'd probably buy a Greyhound ride.

But woe for him, on his way over to the bus he'd fail to conform to the craft beer-drinking, $200-dinner-tab munching, upper-middle-class, Instagrammable Late-2010's Chic that Denver has paid so much to cultivate and weaponize inside Union Station.

Let's create a separate entrance for Greyhound customers and the poor so they can't intrude on OUR amenities or touch OUR bathroom faucets!

Denver likes to talk about Union Station being Denver's "living room", but comments like this make it clear that one part of Denver never wants to see a different part of Denver spending time there.

[twister244]

Originally Posted by HighSt.

I know exactly where you're going. Your attitude reeks of classism and class anxiety.

Because of price points and private security, Union Station belongs to a certain clique: college-educated, white collar people who can afford to drop $100 on an oyster dinner because they make in the high five or low six figures a year.

A middle-aged gentleman is behind my building in Capitol Hill right now with a small bike-driven rickshaw scavenging building materials out of a dumpster that were tossed aside by contractors. If he wanted to take a trip, he'd probably buy a Greyhound ride.

But woe for him, on his way over to the bus he'd fail to conform to the craft beer-drinking, $200-dinner-tab munching, upper-middle-class, Instagrammable Late-2010's Chic that Denver has paid so much to cultivate and weaponize inside Union Station.

Let's create a separate entrance for Greyhound customers and the poor so they can't intrude on OUR amenities or touch OUR bathroom faucets!

Denver likes to talk about Union Station being Denver's "living room", but comments like this make it clear that one part of Denver never wants to see a different part of Denver spending time there.

That's not the poster's concern at all....

This person is simply concerned that Union Station will contain more grifters, transients, etc than it does now, making Union Station less like what it is now, and more like what the 16th street mall probably was like before security started patrolling the street. I have no issues with anyone from any class using Union Station for what it was built for, whether it be dining at a restaurant there, or simply catching a Greyhound bus. However, the poster, myself, and many others who are paying tax dollars for this big investment don't want transients to — all over it and proclaim they have a special right to camp out and harass folks. There's a reason you see a ton of security patrolling Union Station, and RTD and the city are right to be protecting their investment.

[CherryCreek]

Originally Posted by twister244

That's not the poster's concern at all....

This person is simply concerned that Union Station will contain more grifters, transients, etc than it does now, making Union Station less like what it is now, and more like what the 16th street mall probably was like before security started patrolling the street. I have no issues with anyone from any class using Union Station for what it was built for, whether it be dining at a restaurant there, or simply catching a Greyhound bus. However, the poster, myself, and many others who are paying tax dollars for this big investment don't want transients to — all over it and proclaim they have a special right to camp out and harass folks. There's a reason you see a ton of security patrolling Union Station, and RTD and the city are right to be protecting their investment.

Agreed and well stated.