COLORADO | Front Range Development Thread #2

[TakeFive]

^^ Cirrus... I fell in love with Asheville back in 2008 when I followed Obama all over the country. During 'our travels together' I would often do background checks and Asheville was one spot I found enchanting. Your photo thread is nice.


Sounds small but it's actually a Big Deal

Aurora Gets $25M Grant To Build Interchange At I-70 And Picadilly Road
November 7, 2019

AURORA, Colo. (CBS4) — The City of Aurora is getting a $25 million grant to build a new interchange at Interstate 70 and Picadilly Road, along with a connection of Picadilly between Colfax Avenue and Smith Road to connect to the new “Diverging Diamond Interchange.”

Credit: City of Aurora via CBS4 Denver

The project would turn Picadilly into a major roadway to accommodate population growth. Thousand of new jobs are expected in the next couple of decades, due to a community of homes and businesses not far from Denver International Airport.

Credit: City of Aurora via CBS4 Denver

[Denver Dweller]

https://www.bizjournals.com/denver/n...V3PT0ifQ%3D%3D

by Andrew Dodson – Reporter, Denver Business Journal
58 minutes ago
Following the sale of their two office buildings near Colorado Boulevard and Interstate 25, Schnitzer West has unveiled plans to develop three, 16-story office towers in Centennial that could total roughly 900,000 square feet.

The office development, called Westray, will be developed in phases at 6363 Greenwood Plaza Blvd., with the first building to break ground in the third quarter of 2020 and take about two years to deliver. That phase includes the development of a 290,000-square-foot tower with 30,800-square-foot floor plates.

Doug Zabel, managing partner at Bellevue, Washington-based Schnitzer West, said easy access to RTD’s rail system was attractive about the 11-acre location in Centennial, which is across from Fiddler’s Green Amphitheater and just west of the Village Center light rail station.

“We see tremendous opportunity in the Denver going and will continue to invest in strategic development opportunities throughout the area,” he said.

Schnitzer West purchased the 11-acre site in February for $20.25 million, according to Arapahoe County public records.

At the end of October, Schnitzer West, along with Investcorp, sold off Centerpoint I & II, located at 3900 E. Mexico Ave. and 1777 S. Harrison St., for a combined $77.5 million. The two companies purchased the 14- and 16-story towers in June 2016 for $52.7 million.

This marks the third major office project that Schnitzer West is taking on across metro Denver.

Other projects include The Current River North, a 12-story, 200,000-square-foot office building planned at 3615 Delgany St. in the River North Art District, and a two-building office development at the old Westminster Mall site, which is now being called Downtown Westminster. That project will total 650,000 square feet.

[twister244]

Is it just me, or does that sound like an insane amount of office space, even for DTC? Considering 1144 15th is near 700,000 sq feet, this sounds pretty intense at 900,000 sq ft.

[TakeFive]

Courtesy Schnitzer West/Fentress Architects via Mile High CRE

Originally Posted by Denver Dweller

Following the sale of their two office buildings near Colorado Boulevard and Interstate 25, Schnitzer West has unveiled plans to develop three, 16-story office towers in Centennial that could total roughly 900,000 square feet.

The office development, called Westray, will be developed in phases at 6363 Greenwood Plaza Blvd., with the first building to break ground in the third quarter of 2020 and take about two years to deliver. That phase includes the development of a 290,000-square-foot tower with 30,800-square-foot floor plates.

A piece back in March at CREJ said the site is entitled for more than one million square feet. Groundbreaking is projected in 3rd quarter of 2020.

[TakeFive]

Originally Posted by twister244

Is it just me, or does that sound like an insane amount of office space, even for DTC? Considering 1144 15th is near 700,000 sq feet, this sounds pretty intense at 900,000 sq ft.

Originally the DTC was strictly on the east side of I-25. There were a number of buildings, maybe a dozen that were 10 to 22-stories. Back in the 1980's that was impressive.

Due to the huge success of DTC they started building on the west side of I-25 mostly between Belleview and Orchard. There was a lot of 3-story typical suburban style projects and on the western edge they stepped down to mostly one story often built for one small business at a time. IIRC, there was a 3-building complex closer to Orchard that went 5 stories.

The last areas on the west side to be developed were what is now Belleview Station and then closer to Arapahoe Rd in the area of Fidler's Green. The newest and nicest buildings are in these two areas. Within walking distance west of the Schnitzer site are a bunch of apartment projects built in the early 2000's.

By way of interesting comparison, going into the Great Recession a number of new high rise office buildings had been built in downtown Phx and nice ~10-story buildings along the the Camelback corridor (comparable to Cherry Creek). A once hot spot for office space, Phoenix Midtown in the aftermath of the recession experienced over 35% vacancy as tenants moved to the newer properties. BTW that's a depression for those buildings.

As the market slowly recovered many of the owners of Midtown buildings virtually gutted the interiors floor by floor and created modern new open space floors. The area is once again popular especially among medical and tech etc companies.

New development in DTC is like 'infill' and the DTC is still a solid location even if downtown Denver is now at the top of the food chain. Schnitzer West is starting with just one ~300,000 Sq Ft building so we'll see how well it leases. For a suburban site a parking ratio of 3.0 per 1,000 Rentable Sq Ft should prove appealing along with its proximity to the Arapahoe Station.

[TakeFive]

A Bridge to suburban TOD


Credit: City of Aurora

https://www.auroragov.org/business_s...n_renewal_area

The city of Aurora won a $4.36 million DRCOG Transportation Improvement Program (TIP) federal grant in 2019 to build a pedestrian and bicycle bridge across Parker Road, just west of I-225.

Design work will begin in 2020, with construction starting in 2022.

[TakeFive]

Denver’s Aerotropolis on Track to Reshape Region
August 22, 2019

“We don’t yet know what the boundaries are for the aerotropolis. We think that the market is going to tell us which companies and developments are going to happen in the area because they need to be near an airport,” said Michelle Claymore, economic development director, Commerce City Economic Development. “We see this as a major opportunity for bold and innovative development that will shape our region for years to come,” said Claymore.

Today and Tomorrow

“Right now we have four to seven thousand people living and working in and around DIA and over the next four years, if we do this thing right, it will jump up to around 180,000 people,” said Michael Martinez, president/CEO of Brighton Economic Development.

That's impressive!

[TakeFive]

Homebuilder plans 430 new homes at mixed-use community near DIA
By Andrew Dodson – Reporter, Denver Business Journal

One of Colorado’s largest homebuilders has its eyes set on High Point, an 1,800-acre mixed-use, master-planned community near Denver International Airport. William Lyon Homes is under contract for roughly 50 acres of land owned by Westside Investment Partners at the northwest corner of East 64th Avenue and Dunkirk Street. The homebuilder submitted formal site development plans for a housing community of roughly 430 parcels that would be a mix of single-family and row townhome residences

Interestingly, William Lyon Homes is being bought by Scottsdale-based Taylor Morrison. Post merger they will become the 5th largest builder. Entry-level and first-time move-up buyers represent 85 percent of William Lyon's business which appealed to Taylor Morrison as did their presence in Washington, Oregon and Nevada.

Outside of downtown Denver the area around DIA should be the largest job creator over the next decade or so. Nearby residential opportunities are needed as are more entry-level homes.

If you think about it the area around DIA is exceptionally well-located strategically for the growing demand for modern warehouse and light industrial uses as well as some office space for those whose focus is either DIA or the new businesses that will be locating and growing nearby.

[CONative]

More affordable (income restricted) for-sale condo housing coming to Stapleton -- and across from the Central Park TOD area. This one looks good!

https://www.zillow.com/homedetails/8...1963707_zpid/?

[wong21fr]

Originally Posted by CONative

More affordable (income restricted) for-sale condo housing coming to Stapleton -- and across from the Central Park TOD area. This one looks good!

https://www.zillow.com/homedetails/8...1963707_zpid/?

Nice. Looks to be about 120 units. Now if only Brookfield would get off their behemoth asses and pull the trigger on the apartments, office, and hotel they've pitched for the western side of Central Park.

[TakeFive]

That's a pretty big boy


Courtesy Ware Malcomb via CREJ


Plumbing supplier to build 450,000 sf
December 16, 2019 By Jill Jamieson-Nichols - CREJ

The country’s largest provider of commercial and residential plumbing supplies will build a 450,000-square-foot warehouse/distribution facility on 53 acres it bought from Prologis for $14.05 million.

The property will accommodate distribution for a variety of Ferguson business groups, including plumbing, HVAC, appliances and more, and also will house a pipe yard.

It seems, understandably, that demand for warehouse space is strong.

[TakeFive]

Financing Is Flowing As Denver Grows, Particularly In Multifamily, Industrial
December 17, 2019 By Riley McDermid - Bisnow

There is plenty of room for Denver to grow despite its unprecedented influx of businesses and people in recent years, experts said at Bisnow's Denver 2020 Forecast event last week. The multifamily and industrial markets are particularly ripe for investors right now, as the city continues to attract large corporate players and the talent that comes with them.

The market remains strong for industrial demand, panelists said, particularly when it comes to financing new projects. So far, investors who have bet on Denver industrial have seen strong returns.

Rippe added that Denver's continued boom is pushing up demand for industrial spaces that can provide services to all the new retailers and consumers putting down roots in the city.

What about office space?

"In my view, there's certainly more room to go in terms of multifamily, as well as industrial," Lainie Minnick, managing director, head of debt for capital markets and chief financial officer at Black Creek Group, said at the event. "Probably a little bit less room to go in terms of office."

[TakeFive]

Found a cool new rendering on ENR


Image courtesy Stantec via Engineering News Record

In case anybody's unfamiliar, Stantec is the architect and interior designer for the new regional headquarters for Kiewit Corp in Lone Tree which just happens to be wong's favorite hideaway outside of central Denver.

[TakeFive]

First Lone Tree; now Aurora

[Atlas]

Here's a picture I took last week of the new aerospace engineering building at CU from the back. It opened last fall and I work on the 4th floor. It's a great facility for a top 10 program!

[TakeFive]

Originally Posted by Atlas

Here's a picture I took last week of the new aerospace engineering building at CU from the back. It opened last fall and I work on the 4th floor. It's a great facility for a top 10 program!

Thanks Atlas!

That's one fine building and the contrails give it nice touch.

I think we also deserve a 'summer shot' when the grass is nice and green so you know your assignment.

[Atlas]

Originally Posted by TakeFive

I think we also deserve a 'summer shot' when the grass is nice and green so you know your assignment.

Will do!

[TakeFive]

This is what you call 'Critical Mass'

Richmond American Homes Plans to Acquire 1,000 Homesites at The Aurora Highlands
Jan 22, 2020

AURORA, Colo., Jan. 22, 2020 /PRNewswire/ -- Richmond American Homes of Colorado Inc., a subsidiary of M.D.C. Holdings Inc. (NYSE: MDC), plans to purchase 1,000 homesites at The Aurora Highlands, one of the largest mixed-use master-planned communities in the region.

Richmond American Homes is the first homebuilder slated to begin construction in one of the most highly anticipated mixed-use master-planned communities along the Front Range. Approximately 12,000 residential units will attract up to 32,000 residents to the 3,100-acre master-planned community situated in northeastern Aurora.

Anybody else?

The Aurora Highlands is working with several national and Colorado-based homebuilders to offer products for a spectrum of buyers. To date, national builder Century Communities and Colorado-based Bridgewater Homes have contracted to purchase approximately 300 and 200 homesites, respectively. In addition, D.R. Horton is in the contract and design review stage for over 1,300 homesites at The Aurora Highlands. Discussions with several additional national and local builders are underway.

It's this development out near DIA:


Source

[TakeFive]

And the beat goes on

https://milehighcre.com/125-acre-ind...ed-for-aurora/

Mortenson, a top-20 U.S. builder and developer with operations in Denver, in partnership with Minneapolis-based Hyde Development, has announced the purchase and planned development of a 2.2 million-square-foot, Class A industrial park in Aurora.

The undeveloped 125-acre site is ideally located along E-470 at 64th Avenue in Aurora, east of the newly opened Gaylord Rockies Resort and south of Pena Boulevard and Denver International Airport (DEN).

The HighPoint Logistics Park is in three economic benefit zones: A Federal opportunity zone, Adams County Enterprise Zone, and Limon Foreign Trade Zone. The distinction allows for significant tax credits that should further encourage job creation and investment by businesses.

[TakeFive]

Right off Brighton Blvd and the freeway

Props to Joe Delzotto who said: "It might not be the easiest plot of dirt to work with but I can do this."

https://www.c3gov.com/government/urb...greyhound-park

City Council and the URA board approved a modified Master Developer Agreement (MDA) for the project in July 2019. The updated agreement makes Delwest the new master developer for the site. Highlights of the amended MDA and other associated agreements include:

• $9.5 million Purchase & Sale Agreement for Delwest to buy all residential land on the property (approximately 40 of the 65 acres) by Spring 2020
• A 5-year period for Delwest to exclusively market commercial areas of the site and receive half the proceeds from all commercial land sales.

https://www.bizjournals.com/denver/n...bruary-20.html

The Colorado Department of Local Affairs’ Division of Housing approved a $2.6 million loan to Delwest Development Corp. to build Greyhound Park Apartments, a 223-unit development in Commerce City. The project is also the recipient of a 4% Low Income Housing Tax Credit.

Best of luck, Joe. Your timing may just be the winning ticket.