DENVER | Main Development Thread #7

[TakeFive]

With your handy recommendation, "Let's get the ball rolling."

Originally Posted by Ejjwheel

Mile High Commercial Real Estate

https://milehighcre.com/

Cool River Mile Update


River Mile rendering courtesy of Wenk Associates via Mile High CRE

Major Restoration on Tap for Denver’s South Platte River
November 19, 2020 - Mile High CRE

A leader in river restoration and development, S2O Design and Engineering has been selected to execute a signature component of downtown Denver’s River Mile development—the restoration of the iconic South Platte River. The effort will incorporate sustainability, aquatic and riparian habitat enhancements, and flood control along a more than 1-mile-long stretch of the waterway.

Where's the money, Honey?

“With $80 million in federal matching funds, river restoration is the project’s fundamental purpose, and it will be one of the most significant river restorations ever undertaken by a private enterprise, anywhere,” says Gregory V. Murphy, president of Calibre Engineering, The River Mile’s civil engineer. “S2O is helping us develop a design solution that’s in alignment with all the stakeholders’ interests.”

Do we have a Big Team effort to add confidence to this undertaking?

In a major commitment by the developer, in partnership with the City of Denver, the Greenway Foundation, and other environmental experts, the project’s goal is to return the river to a more natural state ecologically and physically. The project will also improve recreational access via a trail system leading to new fishing and paddling features. The restoration will add 27 acres of riverside parks and open spaces while energizing this new downtown neighborhood.

Crap-load of new apartments proposed


Image courtesy of CBRE via Mile High CRE

Multifamily Development Coming to Central Park Master Plan
November 18, 2020 - Mile High CRE

Mid-America Apartment Communities, a publicly traded real estate investment trust based in Memphis, Tennessee, has purchased a 26.92-acres of vacant land at the South East Corner of Central Park Boulevard and Northfield Boulevard in Denver. The tract is in the Central Park master plan, formally known as Stapleton, and is entitled for multifamily development. A sale price was not disclosed.

Also according to the Denver Business Journal:

The land is entitled for multifamily development, according to CBRE, and is zoned for buildings up to five stories in height. In September, MAA submitted a concept plan to the city proposing 1,001 dwelling units across twelve residential buildings. The plans also call for three clubhouse buildings, three two-story parking decks and a 3-acre park.

Yet one more REIT wanting a significant apartment footprint in Denver except instead of being scattered around (downtown) MAA will create one huge apartment development site. Reminds me of 'home' as this is similar to what Camden Properties (also a REIT) is developing down the street from the Mayo Clinic in Phx/Scottsdale.

[DenvertoLA]

https://www.bizjournals.com/denver/n...Pos=2#cxrecs_s

National apartment developer chooses Denver for regional HQ

Related Development, the multifamily and mixed-use division of Miami, Florida-based Related Group, has selected Denver as the headquarters for its West Coast operations, the company recently told Denver Business Journal.

Related Development is currently working to build out a Denver team and vetting potential ground-up apartment projects in the Denver metro ahead of opening an office in the first quarter of 2021, according to president and CEO Steve Patterson.

The new regional headquarters in Denver is part of a $2 billion expansion for Related, which plans to begin construction on roughly 6,700 housing units across the country in 2021.

Patterson said Related chose Denver for both its local market fundamentals and the ability to quickly travel via Denver's airport to other markets in the western U.S., such as Salt Lake City and Las Vegas.

Related Group's portfolio includes more than 60 multifamily communities totaling roughly 25,000 units, mostly clustered in the southeastern U.S.

As the company continues to expand geographically, a new headquarters in Denver will help diversify investment opportunities within the company, Patterson said.

Patterson said that by the first quarter of 2021, he aims to be able to name a regional partner to lead the company's operations in the area, and perhaps announce a deal or two in Denver. He said he likes the Denver Tech Center area, as well as Highlands Ranch and Broomfield.

He didn't rule out pursuing opportunities downtown, although he indicated Related would approach the urban core with some caution given the amount of supply there.

Patterson said that because Related is well-capitalized, it can continue to pursue deals despite the current pandemic.

"We're not totally reliant on third-party capital for deals, although we do bring on partners in everything we do," Patterson said.

Related's projects in Denver will likely be luxury rentals, although Patterson said the company will also be looking at ways to build more "attainable" housing.

"I wouldn't call it affordable, but certainly more attainable," Patterson said.

Patterson noted that he and Jorge Pérez, chairman and CEO of Related Group, have been through "a lot of real estate cycles."

"The best deals he and I have done in our careers have typically been deals we've initiated in downturns, not the peak," Patterson said.

Related plans to maintain a long-term presence in the Denver market, Patterson said.

"A lot of merchant developers will bounce into a market, do a few deals, and then leave," Patterson said. "That's not our business plan. We're making a decision to have a presence in Denver and the Rocky Mountain region for the long term, for multiple generations."

https://relatedgroup.com/

Sounds like they are more keen in the metro area to start...

[Ejjwheel]

The Arapahoe Square X3 development has a website to apply for an apartment, with an advertised opening date of Spring 2022.

https://xliving.co/communities/x-denver-3-0/

[SirLucasTheGreat]

Has X3 begun any real site work yet? It has been quiet through through the pandemic.

[DenvertoLA]

that's nuts! Who applies for an apartment 16 months in advance?

[rds70]

Looks like the Opus Group is going to take over the project located at 575 E 20th Avenue. The project will still be 12 stories, and will include 270 units and 5-6,000 square feet of retail. Here is the original project proposed by NAVA Real Estate:



This would be the third Opus multifamily project proposed in the past year, including the 12 story project just north of Empower Field and the 7 story project at Colfax and Kalamath.

[Robert.hampton]

Originally Posted by rds70

Looks like the Opus Group is going to take over the project located at 575 E 20th Avenue. The project will still be 12 stories, and will include 270 units and 5-6,000 square feet of retail. Here is the original project proposed by NAVA Real Estate:



This would be the third Opus multifamily project proposed in the past year, including the 12 story project just north of Empower Field and the 7 story project at Colfax and Kalamath.

Aggggghhhh what a bummer. The NAVA project was incredible and that opus project out by mile high is baaaaaaaaaad. And it’s such a prominent lot for Benedict park...

[BG918]

Originally Posted by Robert.hampton

Aggggghhhh what a bummer. The NAVA project was incredible and that opus project out by mile high is baaaaaaaaaad. And it’s such a prominent lot for Benedict park...

I wonder how sales are going at Lake House? Seems strange to abandon their next Denver project in such a prominent location.

[laniroj]

Originally Posted by BG918

I wonder how sales are going at Lake House? Seems strange to abandon their next Denver project in such a prominent location.

Doesn't seem strange to abandon this one if they're losing their rear-ends on Lakehouse...

[The Dirt]

Lakehouse is so ridiculously expensive. It only makes sense as a second home for out of state wealthy people. Can't imagine that segment of the market being very strong right now.

[TakeFive]

Originally Posted by Robert.hampton

Aggggghhhh what a bummer. The NAVA project was incredible and that opus project out by mile high is baaaaaaaaaad. And it’s such a prominent lot for Benedict park...

I always wondered how well that product could work in this location?

Originally Posted by laniroj

Doesn't seem strange to abandon this one if they're losing their rear-ends on Lakehouse...

Their timing not the best in hindsight but I tend to favor the location. Still, it's a 'changing' area so not a slam dunk.

[TakeFive]

We're getting married - Order the flowers

Salesforce deal to buy Slack expected to be announced Tuesday after market close
NOV 30 2020 By Lauren Feiner/CNBC

“Our primary competitor is currently Microsoft Corporation,” Slack said when it sought to become a public company in 2019. Microsoft has a large customer base it has been able to convert to Teams, and Salesforce could give Slack a similar benefit.

Both companies already have a Denver footprint.

Good news on the retail music side of the street

Originally Posted by Sam Hill

Looks like they're going to build a giant pipe organ.

Vinyl record sales help Denver businesses rebound
Nov 27, 2020 By Liz Gelardi/The Denver Channel

Earlier this year, vinyl record sales outpaced CDs for this first time since the 1980s.

"Well you can’t see music live anymore. It’s also a really nice thing to do when it’s cold outside, sit inside and listen to some records," said Pete Stidman with Wax Trax Records.

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

Originally Posted by DenvertoLA

National apartment developer chooses Denver for regional HQ

[I]Related Development, the multifamily and mixed-use division of Miami, Florida-based Related Group, has selected Denver as the headquarters for its West Coast operations, the company recently told Denver Business Journal.

The new regional headquarters in Denver is part of a $2 billion expansion for Related, which plans to begin construction on roughly 6,700 housing units across the country in 2021.

He didn't rule out pursuing opportunities downtown, although he indicated Related would approach the urban core with some caution given the amount of supply there.

There's no question that Jorge Pérez - The Related Companies has made an impact on the skylines of SE markets from Miami to Atlanta. They've also built 'workforce' housing.

Their 1st westward move (in 2010) was opening an office in Dallas. In 2018 Jorge made a local splash in Phoenix with an announcement to invest $500 million locally.

Maybe Denver will be a so-called HQ for a western region (to include SLC and Vegas). I also noticed they are more interested in suburban development at this point.

New players always welcome. Time will tell how much this means?

[bulldurhamer]

the new greenway through cole and clayton is open. man, is it nice. no doubt a transformational project for the area.

rino booms. just wait for the end of covid.

https://denverite.com/2020/11/16/the...d-excess-rain/

[TakeFive]

Originally Posted by bulldurhamer

the new greenway through cole and clayton is open. man, is it nice. no doubt a transformational project for the area.

rino booms. just wait for the end of covid.

https://denverite.com/2020/11/16/the...d-excess-rain/

I had missed that; thanks for the link!

Few Photos - credit to Kevin J. Beaty/Denverite







Ofc, Sachs couldn't resist reviewing the liberal claptrap between the Platte to Park Hill plan and the Central 70 projects. Eh, it's always comforting that my friends on the left can be just as whacky as my friends on the right.

[TakeFive]

Official Proclamation

The future of the Intermountain States Technology Triangle is bright.
Draw a line from San Francisco to (SLC) Denver then to Phoenix and back to the Bay Area.


Image via Quora

Side Note:

Phoenix agrees to pay $205M on infrastructure to support massive semiconductor plant
Nov 18, 2020 By Corina Vanek – Reporter, Phoenix Business Journal

The Phoenix City Council unanimously approved a development agreement Wednesday with Taiwan Semiconductor Manufacturing Co. Ltd., which the city projects will have a 20-year economic impact of $38.2 billion.

Over a five-year period, the company plans to hire 1,900 people to work in the factory, which will require a $12 billion capital investment to build, according to city documents.

For the world's largest 'independent' fabricator, this will be their first 'Fab' outside of Asia and will manufacture their latest 5 nanometer wafers (the most advanced in the world) used for various microprocessors and chipsets. While only a modest percentage of their overall capacity this could have huge ramifications in geo-political production - likely benefitting Mexico as well.

ICYMI, Denver and Phoenix have always been the second (in passenger traffic) destination between Sky Harbor and DIA. The synergies between these two cities and the West Coast are destined to grow in size and influence. Currently, just over 25 percent of the (net) in-migration to Maricopa County is from California.

Not to be outdone by the Research Triangle Park in North Carolina, look for growing influence of the Intermountain States Technology Triangle. I also didn't include Austin because that is in Texas and Texas is a whole other world. Same for the West Coast tech corridor which would include Portland and Seattle.

Denver and Phoenix could be seen as the Yin and Yang to the Bay Area.

[laniroj]

Originally Posted by bulldurhamer

the new greenway through cole and clayton is open. man, is it nice. no doubt a transformational project for the area.

rino booms. just wait for the end of covid.

https://denverite.com/2020/11/16/the...d-excess-rain/

A fantastic project with huge benefits. I've been walking down portions of it. Didn't know about the litter/trash collectors, those are pretty neat. I'm a bit confused as to what all those giant transformers are lining the south side of the channel though...they look terrible, but otherwise a solid investment from the City.

[EngiNerd]

Originally Posted by TakeFive

I had missed that; thanks for the link!

Few Photos - credit to Kevin J. Beaty/Denverite



Ofc, Sachs couldn't resist reviewing the liberal claptrap between the Platte to Park Hill plan and the Central 70 projects. Eh, it's always comforting that my friends on the left can be just as whacky as my friends on the right.

Look at all that green....

[TakeFive]

Be Still My Heart

At a time when new construction of mixed-use buildings has reached a peak in downtown Denver, renovations of historic properties are few and far between, present more challenges and subsequently should be celebrated.

Denver Market Center - 1624 Market St, Denver
Photos courtesy Urban Renaissance Group (URG) (via Mile High CRE)



Denver’s Market Center Unveils Transformation
November 10, 2020 By Katie Rapone, editor - Mile High CRE

Built between 1872 and 1902, Market Center includes a 5-building 121,000-square-foot complex stitched together to offer a continuous floor plate.

From the moment you step inside the building you are struck by the atrium’s light and airy aesthetic. Original brick and timber features combined with modern lighting meld together the past and present

Who pays to rent space like this?

URG maintained strong leasing velocity throughout construction and tenants — made up of tech tenants, law firms and service groups — remained in the building during its transformation and now feel more attached to the buildings as a result.

Who did the exterior work?

Award-winning Tryba Architects were also involved in the early stages of the renovation to complete the exterior work, including the new store fronts.

From an exterior perspective, the building’s façades were carefully restored to their historic past — including intricate brick work — and modernized with the addition of operable windows. Perhaps the most impactful alteration made to the property is the expansion of the sidewalks. The city approved the removal of the parking lanes which added eight to 10 feet of additional pedestrian walkway and accommodate new patios for four restaurants, including popular local establishment Oskar Blues.

New irrigation, landscaping, historical rails, pavers, new stairs for pedestrian access from street level and lighting improvements will undoubtably reinvigorate the property reinforcing Market Center’s appeal as a centrally located retail destination.

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

Originally Posted by EngiNerd

Look at all that green....

When has the finished product ever looked as good as the rendering?

Now if they would just plant "winter rye" grass it would look great (and green).

[TakeFive]

Denver Dots and Aerotropolis

https://www.bizjournals.com/denver/n...expansion.html

HighPoint Logistics Park — an already massive industrial and logistics project at the intersection of E-470 and 64th Avenue in Aurora — will expand by 274 acres, bringing its total size to nearly 400 acres, developers Hyde Development and Mortenson Properties told Denver Business Journal Friday.

Mortenson a long-time Denver developer has teamed up with fellow Minneapolis headquartered Hyde Development on this development.

On Nov. 20, they closed on an additional 145 acres for $22.33 million, according to property records. Another purchase of 129 acres is set to close next month. All told, the latest transactions will more than triple the size of HighPoint.

The Seller is Westside Investment Partners who has purchased Loretto Heights and Park Hill Golf Course in Denver. Westside has also sold some of their 'High Point' land to William Lyon Homes to develop a mixed-use community including 430 homes starting in the low $300,000's.

High Point is also the backdrop for a large (sprawling) development. D.R. Horton, the largest homebuilder in the country (along with Lennar Homes) is the lead builder. Local homebuilder Richmond Homes and others will also round out a varied portfolio of offerings. D.R. Horton's homes are starting in the low $400,000's. Gaylord Rockies Resort & Convention Center is in the same area as all of the above.

The Pauls Corporation, also a long-time Denver developer (their offices are in Cherry Creek) has announced plans out by the airport.

More than 1,000 rental housing units proposed on vacant site near Denver airport
Dec 2, 2020 By James Rodriguez – Reporter, Denver Business Journal

A Denver-based developer is planning to build roughly 1,175 rental housing units, along with retail space and hotels, on 60 acres of vacant land at the northeast intersection of East 40th Avenue and Peña Boulevard, according to a proposal submitted to the City of Denver.

The project would be built in phases and would include four 5-story apartment buildings, approximately 141 single-family rentals, roughly 57 townhome rentals, two 1-story retail buildings, two hotel buildings and a roughly 4-acre park.

Other nearby projects by the Pauls Corp are:

Nearby, Pauls Corp. is building a mixed-use project with 374 apartment units and a retail component on a site south of 40th Avenue and directly east of the Regional Transportation District's commuter rail station at 40th Avenue and Airport Boulevard

Directly north of that rail station, Paul's Corp. owns another 17-acre parcel of vacant land that's earmarked for future development, according to Joe Wilson, director of multifamily construction for Pauls.

Is Commuter rail important?

Wilson said the company is seeing a high demand for rental units in the area, particularly near the commuter rail station.

As always development is a slow-walk process.

Wilson said he expects the entitlement process with the city to be completed by the second quarter of 2022. After that, phased construction could begin.

Why is this important?

An urban city can not function unless 'somebody' provides the nuts and bolts of life. 'We' tend to take for granted a gazillion activities and things. Somebody has to supply and deliver all this 'daily bread.'

Secondly, this is the 'one part of town' that will offer a mixed-use and mixed affordability options for everyday people.

Be grateful.

[Ejjwheel]

https://milehighcre.com/denver-devel...ject-near-dia/

Development along the corridor of opportunity continues.

"According to a concept plan submitted to the City of Denver, Denver-based developer The Pauls Corporation is proposing to construct a mixed-use development consisting of 1,175 units of for-rent apartments and townhomes, as well as 60,000 square feet of retail and hotels, on a 60.1-acre parcel of land at the northeast intersection of East 40th Avenue and Peña Boulevard." - Mile High CRE