DENVER | Main Development Thread #7

[Ich]

Originally Posted by rds70

It is 360 Acoma, being constructed by Lennar Multifamily:

Thanks for the info!

Also not sure how legit this is but it was updated last month saying Block 176 will break ground next quarter.

https://www.constructionjournal.com/projects/details/d5a6333e36144ccca96f36755ec94e28.html

[Agent Orange]

Jealous of all you folks who can move time zones/jurisdictions. My company/industry keeps tabs on that. Agree with some of those here who think Denver's getting close to 'jump the shark' territory on housing. I finally saved enough for my desired down payment by the start of last year. Then in April or so I thought, 'if I can manage to not get laid off, I could score an amazing deal!'. Naive. Instead, prices shot through the roof. Lame. Should have taken out a low down payment loan a couple years ago, but recalling 2005-2008 living in one of the "boom" cities of that era caused me to be nearly certain the Denver boom would eventually correct or experience a lull. Didn't expect a global recession would come along and increase housing prices even further!

So now I'm looking at buying in a 70s/80s era condo or townhome in an extremely auto centric, strip mally suburban area, or maybe a shabby, smaller condo with a very high HOA in Cap Hill. Memories of literal dumpster fires and tent cities in 2020 make the second option less appealing. The first option makes ya wonder why you're even living in Colorado. Might as well make it Indianapolis at that point.

My industry is a bit old fashioned and seems likely to want bodies in the office once this is over. Frankly, I like the socialization that comes with seeing workmates. 3 or 2 days a week is plenty though. For the firms that are truly okay with 100% remote teams, I have to wonder--how long until they start paying Iowa wages? Why pay someone a California or Colorado premium when you can hire folks living in the cornfields and hollers? Depending on the skillset, there's not enough laid off coal workers or transplanted coastals buying farmsteads to go around, but in a dispersed work force reality, that's gotta have some downward effect on wages. Should be interesting to see how things shake out.

/livejournal

[BG918]

Originally Posted by SirLucasTheGreat

Anyone seen any new groundbreakings or other construction activity? I saw a new crane at I-25 and Belleview for what I think might be the Kimpton Hotel

Not the Kimpton, I’ve been told it’s on hold. Likely Vectra Bank HQ on Union. TCR’s 17 story Alexan Belleview Station will be starting this spring.

5 new tower cranes going up within the next month on various projects:
- AMLI Broadway Park (2) @ Alameda & Bannock
- Capitol Square @ 13th & Sherman
- CCH Legacy Lofts @ 22nd & California
- X Denver 3 @ 21st & Arapahoe

Also hearing Crescent’s Novel Rino, one of the largest planned apartment projects in the downtown area, will be starting next month at 40th & Walnut. That will be a huge catalyst for moving Rino northward.

[Robert.hampton]

Originally Posted by gopokes21

I swung by 16th and Pearl on my coffee run today and I didn't see any missing Victorians, let alone pre-development / staging for demo / anything. Is this a real proposal?

Site plan has been submitted to city and the homes were demolished months ago (fencing is still up). But I don't think it is anywhere close to breaking ground.

The homes frankly weren't particularly special (maybe they weren't even victorians, but they were houses built in the 1800's) but certainly had a lot more integrity than Smileys or the burnt down building at 17th and Logan that Uptown on the Hill is trying to 'save'.

But more important than the buildings that were demolished, I just see a lot of irony in RNO's fighting plans that clearly represent progress (as the proposed developments at Smileys and Colfax/Franklin were) but don't fight against demolishing structures that represent a very obvious regression for the city (converting housing and offices downtown, near transit, into a storage shed).

[gopokes21]

Originally Posted by laniroj

The EB-5 program was great until the Colorado Regional Center screwed it all up and defrauded all of the EB-5 investors on the Solaris project in Vail. Don't think Colorado will be seeing any more EB-5 dollars because of that...

I agree with you on this completely. I looked into this stuff last year when that all came out and everything was a dead end.

Who even is the Colorado Regional Center? Solaris is all over their website and it looks like it's really just an investment firm in DTC with USCIS connections...

https://coloradoregionalcenter.com/

It's not like Denver is hard up for capital inflow but if we ever needed an equity infusion, maybe the City or Denver region should pursue its own USCIS approved "regional center" to bypass this CRC.

[gopokes21]

Originally Posted by Robert.hampton

Site plan has been submitted to city and the homes were demolished months ago (fencing is still up). But I don't think it is anywhere close to breaking ground.

The homes frankly weren't particularly special (maybe they weren't even victorians, but they were houses built in the 1800's) but certainly had a lot more integrity than Smileys or the burnt down building at 17th and Logan that Uptown on the Hill is trying to 'save'.

But more important than the buildings that were demolished, I just see a lot of irony in RNO's fighting plans that clearly represent progress (as the proposed developments at Smileys and Colfax/Franklin were) but don't fight against demolishing structures that represent a very obvious regression for the city (converting housing and offices downtown, near transit, into a storage shed).

I'm not sure I am tracking. The only SDP under review recently in the vicinity is 1580 Logan Street, which is just an interior renovation of a mid rise office building. Sometimes when owners already have by-right zoning they don't have to submit a full SDP, but the process is not straightforward and it's not uncommon to miss an SDP. Like I said I drove by yesterday morning, did not recognize any missing homes from the last year. Just asking because I'm alarmed by the issue you're describing and agree that historic preservation efforts should be more outcome-oriented.

There's been a ton of fires in Uptown over the last few years. Or is it just me?

The homelessness situation has forced a lot of property owners to secure their sites or else be liable for issues. This has resulted in a lot of fencing going up that could be confused for construction fencing.

[Robert.hampton]

Originally Posted by gopokes21

I'm not sure I am tracking. The only SDP under review recently in the vicinity is 1580 Logan Street, which is just an interior renovation of a mid rise office building. Sometimes when owners already have by-right zoning they don't have to submit a full SDP, but the process is not straightforward and it's not uncommon to miss an SDP. Like I said I drove by yesterday morning, did not recognize any missing homes from the last year. Just asking because I'm alarmed by the issue you're describing and agree that historic preservation efforts should be more outcome-oriented.

There's been a ton of fires in Uptown over the last few years. Or is it just me?

The homelessness situation has forced a lot of property owners to secure their sites or else be liable for issues. This has resulted in a lot of fencing going up that could be confused for construction fencing.

The demolished buildings are 1562 and 1566 Pearl. An SDP was submitted to city in December for a 6 story self storage building that would cover those 2 lots and the parking lot down to 16th.

[wong21fr]

Originally Posted by gopokes21

I agree with you on this completely. I looked into this stuff last year when that all came out and everything was a dead end.

Who even is the Colorado Regional Center? Solaris is all over their website and it looks like it's really just an investment firm in DTC with USCIS connections...

https://coloradoregionalcenter.com/

It's not like Denver is hard up for capital inflow but if we ever needed an equity infusion, maybe the City or Denver region should pursue its own USCIS approved "regional center" to bypass this CRC.

Aren't these "regional centers" just a marketing gimmick? IIRC an entity that is seeking EB-5 funding for a project just needs to have been approved under the USCIS EB-5 program but can have projects anywhere in the US. The regional centers can cover multiple jurisdictions and have overlap so it's not like the troubles of the Colorado Regional Center preclude another regional center from bringing a Colorado project online.

I wonder if the El Jebel tower is indeed a continuation of the EB-5 project and the supposed $29M equity raise is still being used. All the legal entities are the same so I'm assuming yes.

[jhwk]

Originally Posted by Robert.hampton

The demolished buildings are 1562 and 1566 Pearl. An SDP was submitted to city in December for a 6 story self storage building that would cover those 2 lots and the parking lot down to 16th.

I am not going to mourn those two buildings, and I understand the demand for self storage - especially in neighborhoods with smaller apartments like Cap Hill - but they are an inherently auto-oriented land use that should not be allowed in the middle of dense neighborhoods.

[wong21fr]

Originally Posted by jhwk

I am not going to mourn those two buildings, and I understand the demand for self storage - especially in neighborhoods with smaller apartments like Cap Hill - but they are an inherently auto-oriented land use that should not be allowed in the middle of dense neighborhoods.

Why not? If there is a demand in these neighborhoods and keeps them competitive in terms of unit attractiveness why shouldn't self-storage units be located in proximity to their customer base in spite of being auto-oriented? Grocery stores in Cap Hill are similarly auto-oriented- should we disallow their use simply because most people drive to them?

[laniroj]

Originally Posted by wong21fr

Aren't these "regional centers" just a marketing gimmick? IIRC an entity that is seeking EB-5 funding for a project just needs to have been approved under the USCIS EB-5 program but can have projects anywhere in the US. The regional centers can cover multiple jurisdictions and have overlap so it's not like the troubles of the Colorado Regional Center preclude another regional center from bringing a Colorado project online.

I wonder if the El Jebel tower is indeed a continuation of the EB-5 project and the supposed $29M equity raise is still being used. All the legal entities are the same so I'm assuming yes.

Have you done an EB-5 deal? I have had the privilege of pursuing one, but not closing it. Once you poison the well word gets out. It was finnicky (at best) prior to the Solaris debacle for raising EB-5 money here in honky tonky Colorado but that project has most certainly poisoned the Colorado well for China (and it's mainly the chinese participating in EB-5). Hopefully, maybe the El Jebel Tower has the buy-a-visa equity committed, but seems like a big change mid-EB5 investment to me.

[wong21fr]

Originally Posted by laniroj

Have you done an EB-5 deal? I have had the privilege of pursuing one, but not closing it. Once you poison the well word gets out. It was finnicky (at best) prior to the Solaris debacle for raising EB-5 money here in honky tonky Colorado but that project has most certainly poisoned the Colorado well for China (and it's mainly the chinese participating in EB-5). Hopefully, maybe the El Jebel Tower has the buy-a-visa equity committed, but seems like a big change mid-EB5 investment to me.

Nope. I do PPA’s, DWA’s and PSA’s in the energy sector, nothing in real estate. My EB-5 understanding was based on my trying to understand how El Jebel was being financed. IIRC, the project was pursued through the Golden Compass Regional Center in UT and that ~$29M in EB-5 equity had already been secured. Not sure if this is still the case, but it would be positive if that’s still the situation.

[DenvertoLA]

Originally Posted by jhwk

I don’t know how anyone can read this board for very long and not realize that the architect has nothing to do with how high a building gets built or whether the building gets a “hat”.

my phrasing was wrong, obviously the architect or studio designed to the price point they was hired to make. Apply some educated inference when reading forums jhwk, they are time fillers and comments, not solely immersive.

But yeah I think it's a lazy concept. If the design was decent I wouldn't mind the shorter height. But IMO this is both a waste of an opportunity for a 60 story tower, and a boring design.

[Robert.hampton]

Originally Posted by wong21fr

Why not? If there is a demand in these neighborhoods and keeps them competitive in terms of unit attractiveness why shouldn't self-storage units be located in proximity to their customer base in spite of being auto-oriented? Grocery stores in Cap Hill are similarly auto-oriented- should we disallow their use simply because most people drive to them?

That's a ridiculous argument. Essentially, 'Why bother with zoning or neighborhood planning at all? Let the market drive decisions so we can devolve into Houston'.

[wong21fr]

Originally Posted by Robert.hampton

That's a ridiculous argument. Essentially, 'Why bother with zoning or neighborhood planning at all? Let the market drive decisions so we can devolve into Houston'.

Are self-storage units an essential part of urban living at this point due to the amount of stuff that the average individual has? I'd lean towards yes. Should a person who lives in an urban environment be required to travel via car to a self-storage unit? No, even though they are more likely to drive to such a facility.

We talk about putting everything that one needs for daily living within walking distance to create a 15-minute neighborhood and I'm saying that self-storage might be one of those needs.

[bunt_q]

Originally Posted by gopokes21

I'm not sure how relevant the city budget, let alone the DPS budget (btw check out the reserves they are sitting on if you're curious where money goes) are to financing mega projects. This city makes a billion dollars magically appear for mega projects every year. Stock show, DIA, I-70, Platte River, Park Hill to Platte drainage network, Stadiums, major affordable/homeless housing initiatives, the new parks sales tax, paying teachers high salaries, and so on.

Denver aint broke - the city budget is merely for maintenance, services, some smaller projects. The reality about transit funding is we should pursue more value capture mechanisms including a tax district to capture the increased valuation around any subway stops. That wouldn't work with streetcar which would honestly be a total waste of money anyway, and likely slower and much less convenient than just driving.

If only we knew somebody here locally who was an expert in real estate value capture, and structuring/financing of major infrastructure projects... if only.

[TakeFive]

Indeed...

Originally Posted by bunt_q

And to think, once upon a time we were excited about a potential Trump Tower in Denver. My, how times have changed.

Feels like that would have been about six years ago or so?

Speaking of Trump hotels this is an interesting/humorous piece. I also learned today via Reuters that "post-presidency perks" including ~$500K per year for office space that could be use to lease from said hotel.

Originally Posted by BG918

Two tower crane bases are now in place at AMLI Broadway Park at Alameda & Bannock. There is a big excavation there so we should start to see that one go vertical soon. 375 apartment units

It's nice to have a few REIT's that can self-fund.

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

Originally Posted by The Dirt

You'll find that blocking development until transit/infrastructure improvements are made is a recipe for making sure that neither happens.

Originally Posted by twister244

Maybe my opinion is an odd view, but I feel like Denver has, or is about to approach a point where folks are going to start taking a second look before moving here.

Again, not trying to rag on Denver, but imo, it has crossed into the "stupid" expensive territory.

I'm surprised that nobody picked up on the supply-demand paradigm.

If Denver is to continue to grow at a brisk pace, then it's good that all that land is available at "fringe" rail stations that appeals to developers. Obviously, from a housing supply standpoint it's awesome and that way you don't end up with more traffic in Congress Park.

[TakeFive]

Originally Posted by wong21fr

I get the appeal of remote working, but I am in the camp that remote working is ultimately going to end up as gig work for the majority who don't stick their nose in the office a couple of times a week. The siren call of cost savings is just too damn high.

Brilliant; in addition to office space saving why not save HR costs too. There already is many gig workers who make six figure incomes.

Dang; I forgot that Axios had an interesting piece about this just today.

As teleworkers flit from city to city, they're creating a huge tax mess. Our tax laws aren't built for telecommuting, and this new way of working could have dire implications for city and state budgets.

"There’s gonna be a shakeout of what economic activity looks like and where it’s going to get done, and that’s going to require cities to rethink what their tax base looks like," says Kim Rueben of the Urban-Brookings Tax Policy Center.

Generally the issue is going to be a food fight over taxes.

The backdrop: By and large, Americans owe income taxes where they work, Rueben notes.

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

Originally Posted by twister244

I can't speak for Dirt, but I am not planning on being in one spot for more than a month or two (as most nomads are). If you are talented enough, and bring value to a company cloud-based and international, I don't think folks care much. Plus, it cuts down on office expenses if less people are coming into the office. I am on the hook for work-related supplies (and co-working memberships) if I go remote long-term. But for me, that's more than worth it to have that privilege.

I'm very envious. Do it why you can!

Originally Posted by rds70

It is 360 Acoma, being constructed by Lennar Multifamily:

So basically what was planned by the previous developer. Did they use the same architect? Not that the concept isn't easy enough to replicate by somebody else.

[TakeFive]

Originally Posted by bunt_q

Denver is just too small. Wonder why RTD District A is so large? Because it is not dense. Barely denser than some of the suburbs around it. We can speculate about a regional tax going to fund Denver's "densest" neighborhoods, but politically, it is never happening.

Originally Posted by bunt_q

Sound Transit 3 is more like $28 billion in new taxes; only $11 billion in bonds. The $53.8 billion number is future dollars (clever of them, though). So it’s actually only about 2.5x Fastracks. And it is regional. Nothing at all would prevent us from doing that - although Sound Transit’s footprint is even bigger than RTD’s; it’s more akin to a Front Range system. (Seattle’s geography is what forces such robust investment, and such robust grade separation, in the urban core.)

That is nothing at all like trying to fund a subway on the backs of Denver-proper voters, or asking regional voters to fund a Denver-focused subway system.

The biggest difference between Denver and Seattle is Amazon. They have accumulated over 10 million Sq Ft of office space and they're still growing. For you math whiz's do an overlay of 10m SF in downtown Denver.

The 2nd biggest difference (aside from geography which is indeed BIG) is do a search of Fortune 500 companies in WA/Seattle area. They are mostly recognizable names.

Originally Posted by laniroj

The EB-5 program was great until the Colorado Regional Center screwed it all up and defrauded all of the EB-5 investors on the Solaris project in Vail. Don't think Colorado will be seeing any more EB-5 dollars because of that...

The other huge factor is that China has really clamped down on capital outflows.

Originally Posted by Paulopolis

The 5-story Holland Partners Group development at 10th & Santa Fe looks like it’s going to start construction any day now. It’s been fenced off for a while, and they’re demolishing all the structures on the site. Covered walkways are being installed.

The 8-story development on the corner of 13th & Santa Fe also looks like it is going to start construction at any moment. It’s been fenced off for a while, all the structures have been demolished, and surveyors were on site this morning.

The 9-story DHA mixed-income development at the corner of 13th & Decatur (Sun Valley) looks like it’s going to start construction very soon too. The lot was recently fenced off, and they’ve begun tearing up the parking lot.

Thanks for the good info.

IIRC, 10th & Santa Fe is another example where an established developer with access to capital bought out a developer with less capability.

Nice to hear about 13th & Decatur (Sun Valley) moving forward; obviously a different funding avenue and designated affordable housing always a good thing.

[TakeFive]

Originally Posted by gopokes21

In my experience, once someone's POV becomes fully myopic there is no talking them down from that ledge (further evidenced by your suggestion in the next post to close down Blu Pan), but basically you think Denver is a poor struggling city with no resources.

I'm not sure how relevant the city budget, let alone the DPS budget (btw check out the reserves they are sitting on if you're curious where money goes) are to financing mega projects. This city makes a billion dollars magically appear for mega projects every year. Stock show, DIA, I-70, Platte River, Park Hill to Platte drainage network, Stadiums, major affordable/homeless housing initiatives, the new parks sales tax, paying teachers high salaries, and so on.

Well you're conflating lots of stuff; but fair point.

Each of these projects does have its own history and funding story.

Originally Posted by bunt_q

If only we knew somebody here locally who was an expert in real estate value capture, and structuring/financing of major infrastructure projects... if only.

Have to agree..... If only?