DENVER | Main Development Thread #7

[The Dirt]

Disappointing, but at least it's moving forward.

[TakeFive]

X Basecamp

Originally Posted by rds70

It looks like PMG is changing the program for the X3 Denver project.

According to the plan, parking will be added to the project (the current plan has no parking) removing two floors of residential. This building is still planned for 22 stories.

From the requested modification:

Sounds familiar but not identical.

https://www.bizjournals.com/phoenix/news...proves-tax-incentive-downtown-tower.html

Phoenix City Council approved ... a GPLET for the development of a 19-story, 375-unit apartment project that will include 6,000 square feet of commercial space and 144 parking spaces planned for Second Avenue and McKinley Street. According to city documents, a minimum of 10% of the units will be designated for workforce housing.

In exchange for the 'workforce' units, PMG will receive a property tax abeyance for 8 years.

According to... documents, the project, called X Basecamp will cost about $92 million to build ... X Basecamp will be developed by the same developer as Society Phoenix on Monroe Street and Third Avenue.

So the critical question is

What will they end up naming this latest project in Denver?

[rds70]

Construction on 103-unit affordable housing development in Capitol Hill to begin soon

By James Rodriguez – Reporter, Denver Business Journal
Sep 30, 2020, 3:05pm MDT

The developers behind a planned affordable housing project at 13th Avenue and Sherman Street in Capitol Hill will soon begin tearing down the existing buildings on the site to make way for a six-story, 103-unit apartment building.

The 120,000-square-foot project, located a block away from the State Capitol, is aptly named Capitol Square Apartments. The roughly half-acre site includes two dilapidated warehouses at 1271 and 1275 Sherman St. as well as a portion of the parking lot immediately to the south, all of which are owned by the Colorado State Land Board.

Mile High Development and Brinshore Development, the project's developers, are working to secure the last of the necessary permits before beginning demolition. George Thorn, president and founder of Mile High Development, told Denver Business Journal the group expects to receive those permits and begin work in October.

The development team is targeting a June 2022 delivery, Thorn said. On Thursday, Oct. 1, the team is hosting an official unveiling ceremony at the site, which will include remarks from Gov. Jared Polis.

Capitol Square Apartments will include 73 one-bedroom units and 30 two-bedroom units above two levels of parking, one of which will be below ground.

The architect on the project is KTGY Architecture + Planning. Milender White is the general contractor.

[TakeFive]

Originally Posted by rds70

Construction on 103-unit affordable housing development in Capitol Hill to begin soon

By James Rodriguez – Reporter, Denver Business Journal
Sep 30, 2020, 3:05pm MDT

Capitol Square Apartments


Image courtesy Mile High Development

[TakeFive]

Originally Posted by Curtis Park

I know, we should not engage with this irrational whiner but I guess I couldn'g help myself this time.

This is a blog, after all, which is for opinions and we all have lots of those.

I don't find bulldurhamer's post to be particularly irrational. Good guess that there are many more who share his frustration. While the style might be different it's not unlike something wong might say.

Speaking of street improvements

Lane Closures Planned Along Santa Fe Drive For Safety Improvements
September 28, 2020 By Audra Streetman - CBS4 Denver

DENVER (CBS4) – Drivers can expect lane closures along Santa Fe Drive over the next several weeks. Denver’s Department of Transportation & Infrastructure will install safety treatments along the corridor from 6th to Colfax Avenues.

Oh my... What are you going to do to one of my favorite streets.

Officials plan to reconfigure Santa Fe from three travel lanes to two in order to calm traffic and reduce vehicle speeds. The changes will center driving lanes and add a five-foot buffer between on-street parking spaces and the existing sidewalk. The construction will create two “parklets” next to the sidewalk to provide a place for people to sit. The city is also adding new bike racks, seating, planters and lighting enhancements.

Crews will also use bollards and paint at intersections to shorten the crossing distance for pedestrians. DOTI is also realigning bus stops and adding left turn lane signs at 6th, 7th, 8th and 11th Avenues.

Let's Go High Brow

https://www.denvergov.org/content/denver...vices/projects/santa-fe-streetscape.html

In our Winter 2020 update, we informed you that our Santa Fe Streetscape Artist Committee selected three local artist who will enhance Santa Fe Drive with their artistic talents in three buffer areas within the project boundary.

Alexi High - Alexi is a fourth generation Denverite born and raised on the west side within what would later become the Santa Fe Art District. He currently keeps a studio at the Artists on Santa Fe building and creates work in clay and mixed media. Alexi's work is abstract and contemporary and incorporates industrial and architectural themes. www.alexihigh.com

Bimmer Torres - Denver-born street artist Bimmer Torres has created iconic, site-specific art throughout Denver. He specializes in aerosol paint and the use of other mediums to add profound but meticulous aesthetic depth to his work. He likes to entice the curious minds and challenge perspectives through his visually, colorful work. www.bimmert.com

[TakeFive]

Rendering of The Cameron, courtesy of JLL via Mile High CRE

Cypress Real Estate Advisors to Develop Upscale Apartment Community in Denver
September 29, 2020 By Mile High CRE

Cypress Real Estate Advisors (“CREA”) has received $67 million for the construction of The Cameron, an upscale apartment community located at 4545 E. Warren Ave. in Denver. The Cameron will be a five-story, 361-unit wrap property, consisting of 30 studio, 239 one-bedroom and 92 two-bedroom apartments.

Led by Denver-based Principal Chase Hill and Development Associate Adam Wallace, CREA in partnership with Ben Hrouda of Flywheel Capital, will develop The Cameron on 2.94 acres as the first of a two-phase build-out plan upon a larger 5.35-acre assemblage.

Cypress was the original owner/developer of Denargo Market, specifically building the The Yards and The Crossing at Denargo Market. They are also famous for building the CIVIC Lofts in the Golden Triangle.

[The Dirt]

Originally Posted by TakeFive

This is a blog, after all, which is for opinions and we all have lots of those.

Not a blog, bro. I know you like to post here like this is your personal blog site, but this is a forum. We're not all talking to you, so it's okay the shut your mouth once in a while.

[TakeFive]

Originally Posted by The Dirt

Not a blog, bro. I know you like to post here like this is your personal blog site, but this is a forum. We're not all talking to you, so it's okay the shut your mouth once in a while.

I stand corrected and as Burger King would say: "Have it your way"

What is the purpose of forum?

A forum is a place, situation, or group in which people exchange ideas and discuss issues, especially important public issues. The organisation would provide a forum where problems could be discussed. In ancient Roman towns, the forum was a square where people met to discuss business and political matters.

OR - a medium where ideas and views on a an issue can be exchanged.

You might recall that I was not the OP; I was responding to two previous comments.

That said, in these COVID times, sometimes 'we' just need to vent a little. Hopefully you felt better.

[TakeFive]

(Decided to make two posts instead of just one)

Denver real estate market thriving, except for one area
Sep 30, 2020 By: Sean Towle - The Denver Channel

DENVER-- Downtown Denver used to be so full of life before the COVID-19 pandemic. “Downtown is kinda silent, and it's kind of a 180 from last year,” Denver High-Rise Living founder Lori Greenly said.

“People are looking for single-family homes and townhomes. They’re moving out of downtown and the condos,” Keller Williams Downtown broker Megan Kemp said. “COVID has really impacted condos in the central business district and people who wanna move downtown,” she said.

Brokers who specialize in condos say it's a trend in the district, not the condo market as a whole. “I’m tracking these price reductions in 80202 right now, because there's some pretty sweet deals,” Greenly said.

Today's Denverite points out that rental rates are down ~5% from a year ago according to Apartment List.

I see all this as a good thing - for now.

I can recall in previous years speculating on the 'end of the RE cycle.' But with construction going on and on, even accelerating we mostly gave up talking about cycles and their ending. BG918 would occasionally issue a 'warning.'

Adjustments

With a focus on the downtown market this feels like more of an adjustment, both as to lifestyle preference and affordability. Chances are we see a lull in new downtown construction. But things will settle soon enough and hopefully costs of construction come down. (Not sure about the rising costs of lumber...) Unfortunately, with lots of new suburban construction (country-wide) lumber prices will be hard to predict.

What I'd like to see

Hopefully, we see more developers look to building TOD outside of the city center. Cypress Real Estate Advisors is but one example of wanting to develop urban/suburban product. There's lots of opportunity for suburban TOD.

[bunt_q]

Originally Posted by TakeFive

(Not sure about the rising costs of lumber...) Unfortunately, with lots of new suburban construction (country-wide) lumber prices will be hard to predict.

Can we log it faster than it burns down? Market prices will tell.

Downtown is f'ing weird. Central Denver is f'ing weird. Not a surprise to me that people are fleeing. As more of our offices talk seriously about whether we will ever re-open, and make a vaccine a condition to any re-opening plans... folks are moving on with their lives and making other plans. The die-hard urbanists who stay behind, expect cider prices to plummet. Why? Because bunt_q is going to be the best damn lawyer/orchard-tender there is. Yields gonna skyrocket.

[wong21fr]

Originally Posted by bunt_q

Downtown is f'ing weird. Central Denver is f'ing weird. Not a surprise to me that people are fleeing. As more of our offices talk seriously about whether we will ever re-open, and make a vaccine a condition to any re-opening plans... folks are moving on with their lives and making other plans. The die-hard urbanists who stay behind, expect cider prices to plummet. Why? Because bunt_q is going to be the best damn lawyer/orchard-tender there is. Yields gonna skyrocket.

Gonna have that million dollar apple farm? First step- start with two million dollars.

[RyanD]

Originally Posted by bunt_q

Because bunt_q is going to be the best damn lawyer/orchard-tender there is. Yields gonna skyrocket.

How many orchards / trees can I grow in 210 square feet? With the plummeting air quality, I'm not really using my patio anymore. #urbanfarmer

[Sam Hill]

Originally Posted by bunt_q

Downtown is f'ing weird. Central Denver is f'ing weird. Not a surprise to me that people are fleeing.

The thing that's causing downtown (and adjacent neighborhoods) to feel so dystopian to me lately - even more so than COVID - is the massive homeless camps everywhere. It's hard to feel good about your neighborhood (or the state of the world in general) when you have to walk by/through camps every time you mask up and venture out into the world.

It's a phenomenon that began long before COVID, and really started to accelerate a couple years ago - and I don't quite understand what exactly is behind it. It can't just be housing costs. Even with the housing costs, you can find a way - roommates or whatever you gotta do. And it's not like there's been a sudden dramatic increase in mental health problems and addiction. Has there?

[seventwenty]

Nvm.

[BG918]

Originally Posted by TakeFive

I can recall in previous years speculating on the 'end of the RE cycle.' But with construction going on and on, even accelerating we mostly gave up talking about cycles and their ending. BG918 would occasionally issue a 'warning.'

Hopefully, we see more developers look to building TOD outside of the city center. Cypress Real Estate Advisors is but one example of wanting to develop urban/suburban product. There's lots of opportunity for suburban TOD.

There were a couple months when people really didn't know what COVID would do that it looked like construction would significantly slow down. And in some sectors that has held true like hotels (even though a couple have started recently like the Vib at 35th & Brighton and hearing the Kimpton will be starting soon at Belleview Station). With city/state budgets in the dumps there will likely be fewer civic and transportation projects though some that already had some level of funding like the convention center expansion will move forward. Same for education and airport projects.

Office is definitely a shaky sector right now but some companies may play the long game and realize that large projects in the planning phase now won't open until 2023 or 2024 and things could be "back to normal" then. I see more Wework/co-working style offices gaining popularity again as a hybrid WFH/office culture develops in many industries.

Multifamily construction still seems to be chugging along even with falling rents. I'm honestly surprised by how resilient the market has been and how many new projects are still popping up in the usual places (Rino, Golden Triangle, TOD's) but at some point the market will cool down. I agree with you suburban locations are hot right now, especially if they are TOD. Colorado Springs is also a hot market, likely due to spillover from Denver and the southern suburbs being too expensive.

[BG918]

Backing up some of my comments above from this article:https://milehighcre.com/denver-sees-decr...m_term=0_d7e9da0309-9726b27035-136063493

According to the report, there was a decrease in the quantity of cranes in Denver, due to several projects being completed or approaching completion. According to the Denver Metro Association of Realtors, there is still an increase in demand and shortage in supply of housing. This could mean that the crane count in the future could remain fairly constant if there is continued growth in the residential construction sector.

“The pandemic-induced recession is going to have far-reaching effects,” said Julian Anderson, FRICS, president of RLB North America. “Lenders are less likely to support large new developments in sectors that have been hard-hit, like sports and hospitality. As construction costs soften, we are already seeing more interest in the projects that are coming online.”

Cities seeing an increase in cranes include Phoenix, Seattle, Toronto, and Washington D.C.

Cities with a decrease in cranes include Denver, Chicago, Las Vegas, New York, and San Francisco

Residential projects account for 40% of all cranes counted, followed by 25% installed at mixed-use developments

Cranes dedicated to cultural projects drop 38% from the previous count

Healthcare projects experienced a nationwide increase in active cranes of 38 percent.

[seventwenty]

Greyhound site changes hands

Andy Gibb, senior manager of marketing and proposals for Toronto-based developer First Gulf, told BusinessDen in an email Wednesday that the company is “no longer involved” with the property, an entire city block with the address of 1055 19th St.

A different party is now under contract to purchase the property, according to a representative of JLL, which began marketing on behalf of Greyhound in April 2019. First Gulf backed out in the second quarter.

Gibb declined to comment further. In March, First Gulf submitted a development proposal to the city calling for a 29-story office building and 38-story residential building, which would share a single base, to be constructed at the site.

[DenvertoLA]

Damn. First Gulf usually has quality projects IMO

I feel like we should see something big pop up while the market's low and construction labor is plenty available. Or is that just me wishing ?

[BG918]

Originally Posted by DenvertoLA

Damn. First Gulf usually has quality projects IMO

I feel like we should see something big pop up while the market's low and construction labor is plenty available. Or is that just me wishing ?

Unfortunately RE prices are higher than ever and construction costs are going back up.

[FunctionForm]

I like your thinking, but with literally thousands of people working from home in the current COVID environment, companies are re-thinking their need for office space. My company will allow hundreds of employees to begin working from home permanently starting in 2021. The paradigm shift to work-from-home may forever change the office space landscape and it could be years before there is a need for massive amounts of space.