DENVER | Main Development Thread #7

[seventwenty]

Originally Posted by wong21fr

When you end up homeless in say, Douglas County, do you stay in Douglas County or do you migrate to downtown? Homelessness is certainly a metro-wide problem but it's Denver that bears the brunt of the problem. It also gets the most funding and spends the most of it's finances on it as well but it's still an uneven solution. The proposed Denver specific tax would equitably be a metro-wide tax to provide homeless treatment solutions that could then be spread across the metro area. Screw another shelter in Five Points- put it in along South Potomac in Arapahoe County.

South Potomac is the ja- oooooh. I see what you did there.

[Ich]

https://www.bizjournals.com/denver/news/...lbPgapI_rrTYLKofG8PjTvoM6MtzylqEYJWy3EUo

Looks like another large Bay Area company is moving its HQ to Denver. I’m curious to see where they land in the Denver area.

[TakeFive]

Data-analysis giant Palantir is moving its headquarters to Denver
Aug 19, 2020 By Ed Sealover – Senior Reporter, Denver Business Journal

Palantir Technologies Inc., a $20 billion data-analysis software firm that sells its products to governments... is relocating its headquarters from Palo Alto, California, to Denver.

...the firm now lists Denver as its headquarters on its website, its social media pages and its Wikipedia entry — changes believed to have been made quietly on Tuesday. The address 1555 Blake St. is listed as its Denver location with the Colorado Secretary of State and on its LinkedIn profile, although it's not clear if that's where the ultimate headquarters will be. It is not clear how many employees it will relocate to Denver or hire new for the positions. Palantir has about 2,500 employees worldwide.

Very interesting or not

While much of its work is noncontroversial — its platforms are used by sectors ranging from automotive to manufacturing to boost the efficiency of supply chains and increase vehicle safety — the company has become a target of protest for some of its efforts. The company, for example, works with Immigration and Customs Enforcement and counter-terrorism agencies as part of its large government focus, and Karp said in the Axios interview that he’s lost some of his favorite employees because of their concerns over the work.

So how big were the incentives to land this plum?

Deborah Cameron, chief business development officer for the Denver Economic Development & Opportunity department, said Wednesday that while the city was aware of the project, it did not provide any financial incentives to Palantir. And based on a review of incentives approved over the past year by the Colorado Economic Development Commission, it does not appear that the company has sought or received any public funding for the relocation from the state, as many larger firms do when they move or expand to the state.

This seems to be mostly a change of HQ address. The article also mentions the company has filed to go public at an undetermined time.

Could it be the skiing?

If a part of your business is politically controversial, why would you pick Denver over Dallas, for example. It has to be that some executives/investors like to Ski Vail, Ski Aspen etc.

[tommyboy733]

Originally Posted by wong21fr

I call shenanigans. There's no way that project is actually underway.

Can confirm, 3560 Brighton appears to have broken ground:

[IMG]IMG_20200819_182557060_HDR[/IMG]

[rds70]

Some more information from BusinessDen: https://businessden.com/2020/08/20/16-st...-planned-for-site-of-rino-park-and-ride/

Originally Posted by rds70

Interesting new concept plan submission to the City for the RTD park 'n ride at 38th and Wynkoop:

The Project is a redevelopment of an RTD Park-N-Ride anticipated to consist of 350 multi-family units in 7 story buildings with approximately 351 spaces for residential parking, approximately 10,000 GSF of retail, approximately 297,800 GSF of office space in a 16 story building, and approximately 592 spaces for office parking, along with 18,264 GSF for amenities. The site is zoned I-MX-8, with the following overlays: DO-7, UO-2, and IO-1. The displaced RTD parking of 186 spaces will be provided on-site.

[SirLucasTheGreat]

Apparently, RTD's preference is typically a ground lease. Wonder if the developer would be comfortable not owning the land.

[wong21fr]

Originally Posted by tommyboy733

Can confirm, 3560 Brighton appears to have broken ground:

Hot damn. This was a project that I certainly thought was going to linger and be delayed for sometime until a change of ownership and then go through a new iteration. Which I kind of wouldn't mind given how damn ugly the project is.

[TakeFive]

Originally Posted by rds70

Some more information from BusinessDen: https://businessden.com/2020/08/20/16-st...-planned-for-site-of-rino-park-and-ride/

Interesting that the proposal comes from Portman Holdings. They did express supposed additional interest in Denver at the time of developing Union Tower West but this is the 1st new idea from them that I can recall.

With their track record of building distinctive high rises (all over the world), it's easy to forget they do lots of other development as well.

Originally Posted by SirLucasTheGreat

Apparently, RTD's preference is typically a ground lease. Wonder if the developer would be comfortable not owning the land.

It's not likely an issue for Portman Holdings; it all boils down to agreeing to terms. For this type of project, leases often go out 100 years or more. Length can vary with shorter time-frames but include options to extend.

Consider a site who's land is worth $10 million. Not having to come up with $10 million is a benefit to the developer. For the land owner there are tax advantages although your return is is much lower (initially) and slower. But for some their only interest is to create a revenue stream that can benefit many generations of heirs for decades to come. Rates can have annual escalators or be fixed for a decade (or whatever) with new rates thereafter based on whatever method they decide.

Originally Posted by wong21fr

Hot damn. This was a project that I certainly thought was going to linger and be delayed for sometime until a change of ownership and then go through a new iteration. Which I kind of wouldn't mind given how damn ugly the project is.

One man's trash is another man's treasure.

[rds70]

A building permit was submitted at the end of July for the Vert building at 3595 Wynkoop.

16 stories, 183 units, 175 feet in height:

[TakeFive]

Tech Industry Adds 4M sq. ft. in Colorado
August 20, 2020 By Mile High CRE

CBRE just-released its Colorado Tech Book, which tracks the growth of the tech sector along the Front Range. The report shows the tech industry has added 4 million square feet in the last two years—an impressive 23 percent growth rate. “Twenty-three percent is an impressive expansion of Colorado’s tech industry in just two years.

What piece of this has gone to downtown Denver as apposed to elsewhere?

Downtown Denver is the submarket with the largest amount of tech-occupied space. Among the larger geographic regions documented in the report, the Boulder-Broomfield corridor stands out as the most tech-concentrated.

CBRE via Mile High CRE


As Denver City Council takes first look at Carmen Court landmark controversy, here's how negotiations fell apart
Aug 19, 2020 By James Rodriguez – Reporter, Denver Business Journal

A City Council committee on Tuesday took its first stab at the controversy surrounding the Carmen Court Condominiums in Denver's Speer neighborhood, where a battle over the building's potential landmark status has pitted the condo owners, who oppose the landmark designation, against neighbors who are hoping to stave off demolition and preserve the structure.

Semi-interesting but bottom line this will be up to the City Council to decide and I would have no clue what they will do.

Also interesting is that Hines was involved in a site in Phoenix that had different sort of problems but did delay plans for a couple of years. Plan 'A' was a partnership that fell apart from goals that couldn't be achieved. Hines took over sole possession of the site and in January broke ground.

Hines, the international real estate firm, announced today it has broken ground on Adeline, a 25-story, 379-unit luxury for-rent residential high-rise community at the Collier Center in downtown Phoenix. The new development is near Talking Stick Resort Arena and the new downtown Fry’s grocery store, and the site is one of the last parcels of land available for development in the heart of downtown Phoenix.

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

Originally Posted by rds70

A building permit was submitted at the end of July for the Vert building at 3595 Wynkoop.

16 stories, 183 units, 175 feet in height:

Nice rendering by golly.

[BG918]

Originally Posted by rds70

A building permit was submitted at the end of July for the Vert building at 3595 Wynkoop.

Wow pleasantly surprised to hear this one is moving forward, they must be serious if they're submitting for permit.

[The Dirt]

Assuming this is for rent, not buy?

[wong21fr]

Originally Posted by The Dirt

Assuming this is for rent, not buy?

But of course.

[TakeFive]

39Tenn gonna be Fancy


Rendering courtesy of JLL via Mile High CRE

But have you got the money?

Alpine Investments Secures $12.9M Loan for 39 Units in Denver
August 19, 2020 - Mile High CRE

...located at 3870 Tennyson Street in the Berkeley neighborhood of Denver. The 39Tenn development will be a total of 36,278 square feet, consisting of 39 upscale units totaling 31,633 square feet sitting atop 4,645 square feet of retail space. The development is expected to be completed in late 2021.

Boasting a sophisticated, contemporary style, units will have high-end finishes, engineered hardwood flooring, quartz countertops, European-style solid-core cabinets with soft-close hardware, high-end appliances, energy-efficient LED lighting and efficient water-source heating and cooling systems in each unit.

There's a reason why they're building a brand new clubhouse


Rendering of Circle Point Clubhouse, courtesy of NKF via Mile High CRE

Texas-based Developer Buys 7.8 Acres in Westminster for 261-Unit Multifamily Development
August 20, 2020 - Mile High CRE

The Dinerstein Companies, a professional property construction, development and management company based in Houston, TX., has purchased 7.8 acres of land at the northwest corner of Westminster Boulevard and West 109th Avenue in Westminster. Dinerstein will build a 261-unit apartment community.

Why Westminster?

Over the past few years, Westminster has seen tremendous growth. Located along the U.S. 36 Corridor, the suburb is 13 miles northwest of Denver and 18 miles southeast of Boulder. Known as the “Silicon Valley of the Rockies”, the 36 Corridor has attracted the highest concentration of technology companies in the state that include Epsilon, the headquarters of Fortune 500 Ball Corporation, Oracle, CenturyLink and Trimble Navigation

Last time I talked about Dinerstein was the Aspire Apartments at 7th and Grant.

[TakeFive]

I'm new AND affordable so come on by
(I requested a penthouse unit)


Image Courtesy Ron Pollard via CREJ

Taylor Kohrs completes Emerson Flats low-income project in Capitol Hill
August 23, 2020 By Kris Oppermann Stern - CREJ

Taylor Kohrs recently completed construction of the new Emerson Flats, a low-income housing tax credit project in Denver’s Capitol Hill neighborhood. This $6.6 million wood-frame building is 26,022 square feet in five stories, including 21 units with a combination of one-, two- and three-bedroom floor plans with secure parking. It was developed by Del Norte Neighborhood Development Corp. and designed by Studio 646 Architecture.

Residents were relocated and Del Norte demolished the existing Emerson Street Apartments in order to provide a new modern home for its residents. ... The Emerson Flats site is in an architecturally rich and historic neighborhood of the city of Denver, according to Studio 646 Architecture’s Principal Eric Blase, AIA, LEED AP. “Our primary goal was to design a building that appears to fit within that rich neighborhood fabric, while at the same time provide a building that meets the specific needs of the residents,” Blase said.

News Break

Artful, Innovative, Committed: Hines Founder Gerald Hines Dies At 95
August 24, 2020 By Christie Moffat, Bisnow Houston

Hines founded his company in Houston in 1957 and was responsible for developing some of the city’s most famous architectural landmarks, including The Galleria, JPMorgan Chase Tower, Pennzoil Place and One Shell Plaza in Downtown Houston. Over the course of his career, Hines expanded his sights to other major cities such as New York, San Francisco, Chicago, London, Milan and Berlin. Other famous buildings in the U.S. include 101 California, San Francisco; One Ninety One Peachtree, Atlanta; Three First National Plaza, Chicago; and 53rd at Third, New York City.

[SirLucasTheGreat]

Palantir's Bay Area move makes Denver the city to watch amid Silicon Valley's exodus
https://www.cnbc.com/2020/08/26/palantir...o-watch-amid-silicon-valleys-exodus.html

.For rentals in the Denver metro area, the Covid-19 pandemic brought years of apartment development and economic expansion to a halt. But despite a mild depression, many developers agree that the city is going to remain a place that people want to live, and are planning future construction accordingly. In fact, Apartment Insights counts 22,000 apartments currently under construction in the Denver area with 40,000 in the planning pipeline.

[twister244]

Originally Posted by SirLucasTheGreat

Palantir's Bay Area move makes Denver the city to watch amid Silicon Valley's exodus
https://www.cnbc.com/2020/08/26/palantir...o-watch-amid-silicon-valleys-exodus.html

This article reaffirms some of my views on why Denver is probably going to escape "2020" in a pretty strong position (assuming none of our own backyard Black Swans appear before then). We didn't get hit hard by the virus, we offer an alternative to West Coast lifestyle minus the water at a fraction of the cost (relatively speaking), and we haven't been nearly as hard by urban violence compared to our coastal counterparts.

[The Dirt]

The first and last sentences are contradictory.

[TakeFive]

Very interesting

Originally Posted by SirLucasTheGreat

Palantir's Bay Area move makes Denver the city to watch amid Silicon Valley's exodus
https://www.cnbc.com/2020/08/26/palantir...o-watch-amid-silicon-valleys-exodus.html

That's a very 'pro' but well written piece about Denver. I wasn't aware of this point:

Given that the return to travel has been largely driven by domestic demand, Denver International Airport has seen the smallest capacity cuts of any U.S. airport by United Airlines, Southwest Airlines and Frontier Airlines, while also ranking first for TSA throughput for the past seven weeks straight. “We’re about the only place you can hit Germany and Japan with just one bounce off a satellite,” Ament added.

Then there is this:

According to Zillow, homes in Denver, Phoenix and Austin have been selling at accelerated rates in recent months. The company reports that the median list price of homes was up 6.6% for the year ending August 1, while in San Francisco, list prices were down 5%.

These cities are among the more prominent places were tech has been moving to that are lower cost places. I assume they overlooked Seattle because it's also a relatively high-cost market.

The backstory on Palantir is also interesting:

Palantir takes swings at Silicon Valley on its way to Wall Street
Aug. 26, 2020 By Jeremy C. Owens and Levi Sumagaysay - MarketWatch

The controversial and secretive software company, co-founded by Facebook Inc. FB, +8.22% board member and Donald Trump supporter Peter Thiel, made its filing with the U.S. Securities and Exchange Commission public Tuesday.

Peter Thiel
who happens to be Gay, is Palantir's biggest investor controlling 28% of the stock. The Log Cabin Republicans have long been a part of the Republican Party but typically kept a low profile. So it was noteworthy when Peter Thiel accepted an invitation in 2016 to speak at the Republican National Convention in support of Trump. Worth pointing out is that this was one year following the SCOTUS decision for equal marriage rights including the LGBT community so Republicans were freed from their previous anti-gay positions.

[TakeFive]

Originally Posted by twister244

This article reaffirms some of my views on why Denver is probably going to escape "2020" in a pretty strong position (assuming none of our own backyard Black Swans appear before then). We didn't get hit hard by the virus, we offer an alternative to West Coast lifestyle minus the water at a fraction of the cost (relatively speaking), and we haven't been nearly as hard by urban violence compared to our coastal counterparts.

Exactly!

Denver is very fortunate to have a (2nd term) Black Mayor who is very confident in his position and resolute that peaceful protest is a right but property destruction and rioting is NOT. Additionally, Denver Police Chief Paul Pazen and Mayor Hancock are on the same page: "This is OK but this over here is not OK." This carries over to how they are approaching Homelessness as well.

Contrast this with the clustermess in Seattle and especially Portland.

With respect to California, consider this:

Hollywood's Apocalypse NOW: Rich and famous are fleeing in droves as liberal politics and coronavirus turn City of Dreams into cesspit plagued by junkies and violent criminals

August 15, 2020 By Caroline Graham in Los Angeles for the Mail Online

Today, Los Angeles is a city on the brink. 'For Sale' signs are seemingly dotted on every suburban street as the middle classes, particularly those with families, flee for the safer suburbs, with many choosing to leave LA altogether.

British-born Danny O'Brien runs Watford Moving & Storage. 'There is a mass exodus from Hollywood,' he says. 'And a lot of it is to do with politics.' 'People are getting out in droves. Last week I moved a prominent person in the music industry from a $6.5 million [£5 million] mansion above Sunset Boulevard to Nashville.'

Some of you might have considered my "white flight" over the top and I'll admit it's less likely in Denver at this time. That said:

'Liberal politics has destroyed this city,' he says. 'The homeless encampments are legal and there's nothing the police can do. White, affluent middle-class folk are getting out. People don't feel safe any more.' ... LA is now in the grip of white flight.

Consider the source here for perhaps over dramatizing this but certainly the future of California will be interesting.