DENVER | Main Development Thread #7

[TakeFive]

If I were Golub, I wouldn't look to be a trailblazer in this market re: WTC site. It's a good location, they own the land and it seems they have good institutional partners who can afford to be patient. Why not let the area mature some more; the land isn't going anywhere and will be just as good a site 3 or 5 years from now (for example).

I suspect Golub is focusing on their large RiNo site. They secured masterplan zoning approval so what's next? Planning utility easements and other infrastructure?

[gopokes21]

Originally Posted by BG918

Interesting to see which neighborhoods gained and lost population over the last decade. I would bet over half of Denver’s gains were in Central Park and Green Valley Ranch

This is such a worthless map. 30% population growth is an insane, and unhelpful, break point.

I think core neighborhoods generally need to grow by around 20% each decade to keep up with the need, but 30% feels kind of excessive. Only makes sense in places like CBD/GT/LoDo where there weren't many residential units before. But an already-dense hood like Cap Hill, which still needs to grow, will never grow above 30%.

Cherry Creek somehow grew by 30%? I find that hard to believe.

[SirLucasTheGreat]

I cannot tell if the 12-story apartment building at 3500 Chestnut is under construction or not. There is construction equipment there and all the ground is torn up but I am not sure if that is all part of the RiNo promenade construction. 3500 Chestnut was supposed to break ground this month. I believe it is called Flora Denver.

[Ich]

Is Kenect Denver dead? Their website still shows it but I thought it was supposed to break ground once RMPBS was done.

[RyanD]

Originally Posted by Ich

Is Kenect Denver dead? Their website still shows it but I thought it was supposed to break ground once RMPBS was done.

Hasn't moved on the permitting side in over a year. It's more than likely dead.

[TakeFive]

Originally Posted by Ich

Is Kenect Denver dead? Their website still shows it but I thought it was supposed to break ground once RMPBS was done.

I started by checking on their Phoenix project. They started renting units turn of last year. One rental site shows a block of units available January 1st, 2022 which leads me to believe they have been finishing this in phases. They didn't pick the best time to open a new project given COVID issues.

Akara's 1st project (outside of Chicago) was in Nashville. Looks like early occupancy started in July of last year.

Akara's Flats East Bank project in Cleveland is a JV with a local developer. It will be part of Phase 3 and follows the development of an office building, a hotel and some apartments. It has yet to break ground. Good guess that local guy is up to his eyeballs with the 1st two phases given COVID. The first two phases were a part of a P3 that included public tax breaks and assistance (whatever that means).

Rajen Shastri CEO of Akara Partners is a relatively new development company. It's not hard to notice the difference with X Denver building a similar product. But assuming Akara can work their way through the adversity and given a continuing good market no reason to believe they can't, it may well be they hope to 'some day' proceed in Denver.

[Arapahoe]

this is the version for Denver:

[Arapahoe]

Originally Posted by RyanD

Hasn't moved on the permitting side in over a year. It's more than likely dead.

I doubt it is dead. The company is buying land still, $18.85 million for a parcel in Miami in midst of the pandemic last year, and then again this year they closed on a site in Cleveland. Both of these land purchases are for Kenect projects, 38 story phase 1 tower in Miami and 12 story tower in Cleveland. They already bought the land in Denver. If Cleveland is in the running, I doubt Denver is dead. lol

[SirLucasTheGreat]

One project that appears to be very much alive from a permitting standpoint is the 14th and court hotel. I hope this goes forward as it would add a lot of architectural intrigue to the Civic Center area.

DenverInfill also did a great wrap up on X Denver. I honestly think the murals really helped

https://denverinfill.com/2021/08/a-final-look-at-x-denver.html

[wong21fr]

Originally Posted by Arapahoe

I doubt it is dead. The company is buying land still, $18.85 million for a parcel in Miami in midst of the pandemic last year, and then again this year they closed on a site in Cleveland. Both of these land purchases are for Kenect projects, 38 story phase 1 tower in Miami and 12 story tower in Cleveland. They already bought the land in Denver. If Cleveland is in the running, I doubt Denver is dead. lol

Maybe not dead, but probably dead in current form as it sounds like their other projects are higher priority and they have a lack of bandwidth to undertake another one at this time.

[Arapahoe]

Originally Posted by wong21fr

Maybe not dead, but probably dead in current form as it sounds like their other projects are higher priority and they have a lack of bandwidth to undertake another one at this time.

Not likely. This company is buying land to build the "KENECT" brand which is dense urban living in the form of towers that contain both co-living and co-working. That *is* the form. Sure the renderings can change, but a tower is the only thing that would make commercial sense given the land valuations. The only projects that are "higher priority" are the ones that were under construction before the pandemic began. Meanwhile, they continue to acquire land for the Kenect brand.

[RyanD]

Okay... Stalled then. The last thing was filed 08-2019 so it's been two full years since they've done anything with the city. I wouldn't be surprised if they have to start resubmitting plans since it's been a while.

Originally Posted by Arapahoe

Sure the renderings can change

Have to go through design review for that. Right now, that board is crickets. Nothing is getting submitted.


Thanks for the shoutout SirLucas! I've been enjoying keeping the DenverInfill machine runnin' this month.

[TakeFive]

Originally Posted by Arapahoe

this is the version for Denver:

Thanks for finding this. Your rendering link is ahem rather interesting; still I can't do any better. However I would credit the rendering to their architectural team Baskervill out of Richmond, VA plus HighSide Development as their construction manager. Both companies have been involved in building new Cambria hotels. Interestingly, I was not familiar with HighSide which is from right here in Denver. Can't tell from this perspective if the other side might look more interesting.

Originally Posted by Arapahoe

I doubt it is dead. The company is buying land still, $18.85 million for a parcel in Miami in midst of the pandemic last year, and then again this year they closed on a site in Cleveland. Both of these land purchases are for Kenect projects, 38 story phase 1 tower in Miami and 12 story tower in Cleveland. They already bought the land in Denver. If Cleveland is in the running, I doubt Denver is dead. lol

I was aware of Miami but wasn't aware they had indeed closed on their site. Good to know.

It's probably fair to say that both Denver and Miami are not on the 'fast track' at this time. Cleveland is very dependent on the local partner given the 50-50 partnership - unless something has changed.

[TakeFive]

(In my best imitation of Jack Nicholson)

"You want affordable housing? I'll give you affordable housing!"
Friend, it's all about demand and supply.

By Proclamation and Decree by the City of Denver henceforth all new apartments (well half of them) will be ten stories or higher. They will have no insulation, cheap-ass windows, energy inefficient appliances, lights that flicker on and off and each apartment will be allowed one space heater.

This way we control the demand since anybody that makes a decent living won't want to live in these shiny new towers. By default the supply should be sufficient for those who truly need a cheap place to live.

What about micro-apartments?

I have to laugh at myself; ten years ago I had trouble wrapping my head around the notion of such tiny apartments (in Denver). Boy, was I wrong. This product has only continued to grow to also include X Denver dorm-style living. Still, I would contend it's just a niche, even if a viable one. Ten years ago it was all about the Great Millennial Migration. Today it's Gen Z's turn to move into downtown. It's merely a part of downtown's revolving door.

Where do you live?

Chances are that if you are over 30 years old you do not live in a 400 square foot 'home.' In fact one thing that the Pandemic demonstrated is there was a pent-up demand for SPACE.

It's kinda like all those who voted for FasTracks (including me); it wasn't b/c I expected to ride that rails; rather I expected other people to ride so that I could drive unimpeded down a freeway.

Conclusion:

Generally speaking, the notion of affordable housing in desirable areas of Denver (which continues to expand) is mostly a ship that has already sailed. The cost of land and the cost of construction make it very difficult to create affordable housing - unless ofc you want to take Jack Nicholson's advice.

[wong21fr]

Originally Posted by Arapahoe

Not likely. This company is buying land to build the "KENECT" brand which is dense urban living in the form of towers that contain both co-living and co-working. That *is* the form. Sure the renderings can change, but a tower is the only thing that would make commercial sense given the land valuations. The only projects that are "higher priority" are the ones that were under construction before the pandemic began. Meanwhile, they continue to acquire land for the Kenect brand.

Sorry. Didn't mean a total redo of the form as is, but rather what Ryan was getting at:

Originally Posted by RyanD

Okay... Stalled then. The last thing was filed 08-2019 so it's been two full years since they've done anything with the city. I wouldn't be surprised if they have to start resubmitting plans since it's been a while.

It's been quiet enough that when Akara does decide to move on Kenect Denver that it is likely they do some changes to the approved plan and will refile.

[rds70]

Originally Posted by SirLucasTheGreat

One project that appears to be very much alive from a permitting standpoint is the 14th and court hotel. I hope this goes forward as it would add a lot of architectural intrigue to the Civic Center area.

Another project that might be coming back from the dead is the Marriott hotel on 14th Street across from the convention center. A resubmittal was made last month.

[wong21fr]

Originally Posted by rds70

Another project that might be coming back from the dead is the Marriott hotel on 14th Street across from the convention center. A resubmittal was made last month.

Please let this be true. Filling in the front of the Convention Center with the project would be most excellent.

[Arapahoe]

Originally Posted by RyanD

Okay... Stalled then. The last thing was filed 08-2019

and then we have this thing weird disease outbreak in China. This shouldn't be a shocking new discovery, but people did not understand at the time what impact the virus would have on the populations, cities, economy, etc. So yes, nearly every proposed project in the world was stalled or delayed. Stock market crashed hard and now we have the fastest recovery ever! but still major shock waves in finance, supply chain, materials and labor. Governments printing money like never before. A lot of unknowns. I wouldn't assume that a stalled project means a dead project, or that would mean nearly all proposed projects are dead projects.

[RyanD]

I know this might sound crazy, but there are active developments with permits filed after Kenect and even during COVID that have gotten underway. I really like Kenect and would love to see it break ground. Time will tell.

[SirLucasTheGreat]

Ryan, what are some projects that have not yet broken Ground that you have the highest degree of confidence and eventually breaking ground?