DENVER | Main Development Thread #7

[DenvertoLA]

I don't think that will last too long. The negative effects from remote working have yet to come in to full view. And low key lots of parents don't want to work from home, they need the escape.

I think the more probable outcome is a demand in sanitary tech updates. Air filtration, ultraviolet sanitizers in elevators, etc.

but that's me hoping again

[TakeFive]

Courtesy Ohio Farm Bureau

Originally Posted by bunt_q

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.

You do know your seasons. It won't be long before the grocers start getting in jugs of apple cider. That's when I push the carrot juice aside and live off apple cider for about 4 months.

Speaking of orchards etc and since it's silly (political) season this is what voters in MI get to see.

Have we come full circle?

Think back say 8 years ago. The energy was so strong in downtown from millennial affection that developers were afraid to even build in the suburbs. Then there was a surge over a few years where they scooped up readily available land for apartments. That played itself out and several developers who entered the Denver market via the suburbs quickly moved into downtown.

Good guess that going forward there will be much more emphasis on (again) building urban/suburban density with Lone Tree being the poster child. Apartments outside of downtown but within the city will also be a focus for many developers.

Originally Posted by Sam Hill

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.

That has to be tough for a guy who likes to get out and walk a lot.

It's as though the city center has unwittingly become a magnet for homeless. Come on down where every day is a 'homeless party and free camping day.' Yes, drug use has grown and again the city center is the place to enjoy your many drugs of choice - sadly. To top it off the city is now being sued for their homeless sweeps because...

[TakeFive]

Originally Posted by BG918

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.

Agreed. There were a number of multifamily projects far enough along to proceed to construction. In some cases developers had their own funding. There were also several more modest-sized projects with a niche location that were able to secure funding as a result.

Originally Posted by BG918

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).

As I recall the 'Vib' developer is a smaller, infrequent builder and interesting group. Presumably, they did their own 'private' offering using many of the same investors. Once they had raised their money and perhaps after a COVID pause they decided "let's go" and were able to secure construction funding due to their specific plan.

Consider the area. Brighton Blvd will never be as 'walkable' as some would prefer since it's a major corridor with freeway access. They did do a nice job with the road reconstruction. The area between Brighton Blvd and the Platte should be quite nice and walkable however.

We now have to talk about Generation Z in addition to some millennial stragglers. I'd make a bet that the Vib will be a magnet for those coming for a job interview, to check Denver out for a possible move, those coming to visit their Gen Z friends etc.

[TakeFive]

Originally Posted by BG918

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

Courtesy Gfycat

Urgently need a volunteer for critical task
Your assignment will be to drive downtown Denver and count the number of tumbleweeds you find.

Originally Posted by DenvertoLA

Damn. First Gulf usually has quality projects IMO

I don't recall knowing that First Gulf was the original buyer. I did like their office project on 14th Street. They weren't the biggest player but they were credible and outside of Toronto I think Denver was the only U.S. city they had interest in.

Originally Posted by 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.

It's sooo hard to project under the current circumstances but no doubt this will have an impact going forward.

Originally Posted by DenvertoLA

I don't think that will last too long. The negative effects from remote working have yet to come in to full view. And low key lots of parents don't want to work from home, they need the escape.

I think the more probable outcome is a demand in sanitary tech updates. Air filtration, ultraviolet sanitizers in elevators, etc.

but that's me hoping again

I have read of much the same. Many tech (presumably) companies have discovered issues managing their workforce; additionally the loss of synergies from having an office is another concern.

As you suggest many workers have found too much distraction at home; it could be from kids, the dog or just everyday normal stuff. If you live in a small space there isn't the room to set up a nice work area.

[wong21fr]

Welp. F**k the suburbs. I believe that this is the third (?) project to break ground in RiNo post pandemic.

Hines breaks ground on 397-unit luxury apartment project in Denver Opportunity Zone

All degeneration of the godless, barren 'burbs asides, this is a no-brainer by Hines to move forward. Opportunity Zone, location, and a construction timeline that wraps up post-pandemic are all factors that make this an ideal project to start now.

[SirLucasTheGreat]

Glad to see that move forward in RiNo. I hope that more residential breaks ground soon there.

[TakeFive]

Image courtesy Tenor

Originally Posted by wong21fr

Welp. F**k the suburbs. I believe that this is the third (?) project to break ground in RiNo post pandemic.

All degeneration of the godless, barren 'burbs asides, this is a no-brainer by Hines to move forward. Opportunity Zone, location, and a construction timeline that wraps up post-pandemic are all factors that make this an ideal project to start now.

Dude... you live in a suburb; it's called Stapleton and The Dirt will back me up on this one (I'd think).

Nice find though; nice project.

Residences At RiNo






All images courtesy of Hines

[Jmc84]

I think a lot of the commentary here on WFH impacts on commercial RE downtown miss the mark. The decisions going forward will not be binary (i.e. in the office 5 days per week OR WFH 5 days per week).

My company has at least 800 employees across the Denver metro (Boulder, Denver, and Tech Center area). We've all been WFH since March and our company has been very transparent about their plans post-COVID. Across the entire company we are being allowed to determine our own schedules once we return to the office - the vast majority of employees selected to work in the office 3 days per week or less.

The solution is that anyone working in-office 4 or 5 days per week will be guaranteed a desk, while anyone in the office 3 days per week or less will sit at open, non-assigned desks. This will allow us to significantly reduce the amount of square footage we need in the office. Multiply this across dozens/hundreds of companies and it's hard to see how that won't impact the demand for commercial real estate, at least in the short to medium term.

[SirLucasTheGreat]

I went for a bike ride today and took photos of a few projects that I was interested in.

1. Rev360



2. X2 (right beside X Denver)



3. Vib Hotel (Right beside Rev360)



4. RiNo Promenade



5. RiNo Art Park

[laniroj]

Originally Posted by Jmc84

...Across the entire company we are being allowed to determine our own schedules once we return to the office - the vast majority of employees selected to work in the office 3 days per week or less...

Multiply this across dozens/hundreds of companies and it's hard to see how that won't impact the demand for commercial real estate, at least in the short to medium term.

Totally agree on this point, short term at least. The pandemic may ultimately be the saving grace of WeWork and other shared workspace concepts which were beginning to falter pre-pandemic. I can definitely see smaller companies scaling down or eliminating traditionally leased office space and adopting a more flexible strategy including shared workspaces...the trick is whether or not those shared workspaces can provide an on-site mailing address...

[wong21fr]

Originally Posted by laniroj

Totally agree on this point, short term at least. The pandemic may ultimately be the saving grace of WeWork and other shared workspace concepts which were beginning to falter pre-pandemic. I can definitely see smaller companies scaling down or eliminating traditionally leased office space and adopting a more flexible strategy including shared workspaces...the trick is whether or not those shared workspaces can provide an on-site mailing address...

The biggest impact that I do see to commercial RE is on the lower end of the quality spectrum. If a company goes hybrid they are going to want their remaining space to be attractive, flexible, and central. That translates to Class A space that's located in desirable locations. This will ultimately be a boon to downtown and suburban TOD located along the commercial corridors. The north (Bellview Station) and south end (Lincoln/Lone Tree) of the Tech Center corridor are primed for further growth. It's the B and C class space that are screwed IMO as office space. I can see a good chunk of these towers downtown renovated as residential space over the next decade.

Assuming we address the homeless issue and start sending non-city residents back to Douglas County. Free-loading suburban ingrates.

[twister244]

Originally Posted by wong21fr

The biggest impact that I do see to commercial RE is on the lower end of the quality spectrum. If a company goes hybrid they are going to want their remaining space to be attractive, flexible, and central. That translates to Class A space that's located in desirable locations. This will ultimately be a boon to downtown and suburban TOD located along the commercial corridors. The north (Bellview Station) and south end (Lincoln/Lone Tree) of the Tech Center corridor are primed for further growth. It's the B and C class space that are screwed IMO as office space. I can see a good chunk of these towers downtown renovated as residential space over the next decade.

Assuming we address the homeless issue and start sending non-city residents back to Douglas County. Free-loading suburban ingrates.

I think that's a very good take on things. My company is about 100-130 people right now and based out of Boston. We have a small office in Boulder, but it's definitely not A class space lol. I think after this is done, we may just all get WeWork hot desk memberships and can go in at our discretion to meet in person for meetings a couple times a week. Myself though.... being single and owning a condo, there's nothing stopping me from renting my place out and working remotely from anywhere in the world for a while so I can explore. Especially since we have offices in Tel Aviv, and a few employees scattered elsewhere. I think this is going to be another fun fad you see explode here after the pandemic is over. Those who aren't anchored down and can work remotely will GTFO and see the world.

[TakeFive]

Originally Posted by Jmc84

I think a lot of the commentary here on WFH impacts on commercial RE downtown miss the mark. The decisions going forward will not be binary (i.e. in the office 5 days per week OR WFH 5 days per week).

I had wondered... but it's more relevant and interesting to hear someone's anecdotal information.

It will be interesting to see how many follow suit.

Originally Posted by SirLucasTheGreat

I went for a bike ride today and took photos of a few projects that I was interested in.

Thanks for sharing; I'm always up for 'drive-by' photos.

Rev360 - they sure did a nice job on that project. Props to Anderson Mason Dale, a quality firm if ever there was one.

Vib hotel; I believe we were just talking about that. Rino Promenade and Art Park will add sooooo much to that area.

Originally Posted by twister244

I think that's a very good take on things. My company is about 100-130 people right now and based out of Boston. We have a small office in Boulder, but it's definitely not A class space lol. I think after this is done, we may just all get WeWork hot desk memberships and can go in at our discretion to meet in person for meetings a couple times a week. Myself though.... being single and owning a condo, there's nothing stopping me from renting my place out and working remotely from anywhere in the world for a while so I can explore. Especially since we have offices in Tel Aviv, and a few employees scattered elsewhere. I think this is going to be another fun fad you see explode here after the pandemic is over. Those who aren't anchored down and can work remotely will GTFO and see the world.

Well said.

In hindsight I think you were wise to buy your condo when and where you did. Being on the west side of I-25 was smart.

Tel Aviv sounds like fun and a nice resume builder I'd think.

[TakeFive]

Thursday Afternoon Delight and News

Drivetrain - 3299 Brighton Blvd


Photo courtesy Thomas Gounley/BusinessDen

Thomas Gounley-BusinessDen has a fun "Project Snapshot" (with additional photos) of Drivetrain by San Francisco-based Carmel Partners. With a Denver office, Carmel CEO Ron Zeff was Denver born and raised.

1775 Federal Apartments
Preleasing Now - Offering one month free rent


Image courtesy courtesy of OZ Architecture

This is Modular Construction and Mile High CRE currently has an article about Modular construction.


The name Westside Development keeps popping up

The first time I recall hearing of Westside was with respect to their purchase of Loretto Heights. They subsequently acquired Park Hill Golf Club for redevelopment.

Westside is primarily a land developer and have developed projects or acquired land for development up and down the front range. If curious you can find their portfolio HERE.

The DBJ's Crane Watch has some interesting updates on two of their Aurora projects including High Point. They explain how Westside was getting ready to sell some early development bonds when COVID hit and the bond market froze up. It has since thawed and they recently were able to sell two bond offerings for ~4.75%.

Lastly

It must be nice to have lots and lots of money.

[TakeFive]

While I was following the Dodgers vs Braves baseball game...

I decided to check out Bisnow which I do once a month or so.

Originally Posted by wong21fr

The biggest impact that I do see to commercial RE is on the lower end of the quality spectrum. If a company goes hybrid they are going to want their remaining space to be attractive, flexible, and central. That translates to Class A space that's located in desirable locations. This will ultimately be a boon to downtown and suburban TOD located along the commercial corridors. The north (Bellview Station) and south end (Lincoln/Lone Tree) of the Tech Center corridor are primed for further growth. It's the B and C class space that are screwed IMO as office space. I can see a good chunk of these towers downtown renovated as residential space over the next decade.

wong's instincts with respect to the future seem to be very good.

Blackstone's $275M Silicon Valley Buy A Potential 'Vote Of Confidence'
October 18, 2020 By Dean Boerner, Bisnow San Francisco Bay Area

Blackstone has agreed to pay $275M, or $770 per SF, for two buildings leased to streaming company Roku in Hunter Storm's Coleman Highline office development, Bloomberg reports.

Image courtesy of Hunter Properties via Bisnow

NOTE: Bisnow (now) requires one to register to read their site (but no paywall).

On the negative side of the equation:

In a survey released this month by tenant representation company Savills, more than half of tech companies reported plans to offload some of their office footprints in the coming months.

Blackstone's interest was driven by new, high quality mixed-use development with a credit tenant and nearby access to a Caltrain station.

Who else is interested in 'urban-style' development?

Joint Venture Silicon Valley President and CEO Russell Hancock said the deal is another example of investors and corporations following the lead of Google, which plans on building a downtown mixed-use campus with over 7M SF of office.

Take a minute and scroll thru Google's planned development in downtown San Jose.

While the above two examples are more to the urban/suburban side of life I would emphasize the mixed-use aspect and access to rail transit.

What has all this got to do with Denver?
Stay tuned.

[TakeFive]

Have I mentioned (lately) my undying love affair with trains?


Photo courtesy Uncover Colorado

Yes, I still have full faith in the the future realized potential and value of Denver metro's investment in rail transit.

Downtown Denver and mixed-use

The two nearly full-block (bookends to LoDo) developments - Market Station and McGregor Square - are the epitome of nice mixed-use development. So is RiNo.

TOD - still an attraction with investors.

This would (especially) include 38th & Blake Street Station area as well as Broadway Station - and a half dozen other planned station area developments.

wong also mentioned Lone Tree and Belleview Station and I'd agree.

Denver's future looks very bright, whether in the central city or more suburban areas.

[rds70]

An update on a few development items:

New concept plan - 2000 Welton:

18 Story Multi-Family Residential Building with 409 Units and 144 Parking Spaces in structured parking. 194 feet in height.

The developer is HUB Development, the group behind the......HUB project in RiNo.


New concept plan - 3650 Chestnut:

Concept Zone Lot 1 - The proposed development consists of 4.49 acres of mixed-use development including office, residential, retail, hotel, entertainment, and open space. The development plan includes 326,000 GSF of office, three residential buildings totaling 426 units, 68,500 GSF of retail, 175 hotel keys, 1,163 underground parking spaces, and .44 acres of green space. The development will be broken into multiple phases as illustrated in the Hurley Place Concept Master Plan. Two 12 story buildings with a max. height of 150 feet.

Avalon Governor's Park (Racine's site) has entered the formal site plan review process:

13-story, 304 unit apartment building with 290 parking spaces using the general building form. Max. height 149 feet.

A building permit application has been submitted for the redevelopment of the old Art Institute building at 12th and Lincoln into 194 residential units. (A new five story building is also proposed as part of the project, but no permit has been submitted for that yet.)


On a side note, construction has finally started on the 360 Acoma apartments in the Baker Neighborhood. It is a five story building with 171 units and below grade parking. The developer is now Lennar Multifamily Co.

[SirLucasTheGreat]

Here are a bunch of images (from almost 4 years ago) of the Hurley Place Master Plan:













Here is the link to the article: https://denverite.com/2017/02/17/250-million-plan-finally-make-rino-riverfront/

I would love to see that area between 38th and 35th and Brighton to the Platte River get fully built out. With the RiNo Art Park, the RiNo Promenade, and Number 38, that area will frankly be one of the more exciting parts of Denver if it meets its potential.

[rds70]

Here is a new rendering of the RiverPoint building expansion at 2300 15th Street. The building was reviewed by the Landmark Preservation Commission this week, not because it is historic, but because it slightly encroaches into the Denver Tramway Building historic parcel.

The new five story addition will add 142,000 square feet of space to the existing 54,000 square foot building, including 6,000 square feet of retail. Two floors of underground parking are also proposed. Anyway, here is the rendering:

[rds70]

The Downtown Design Advisory Committee will be reviewing the final design for the Evolve Towers at next weeks meeting. The project is at Park Avenue West and Champa Street.

As a refresher, the project includes two 23-story towers over a common five-story base. 314 units are proposed. The building will be 267 feet tall including the fins extending above the roofline. Approximately 7,000 square feet of retail space is also included and 282 structured parking spaces.

Here are the latest renderings: