DENVER | Main Development Thread #7

[RyanD]

Originally Posted by bunt_q

This reminded me of Ken's old post. (10 years old now? Good God I am getting old.)

https://denverinfill.com/2010/11/cbd-sprawl.html

I stated writing for DenverInfill March 2011, so coming up on 10 years as well. My how time flies.

[TakeFive]

The Travels of Mill Creek Residential Around Denver

Mill Creek was an 'Early-mover' in Denver; both they and Allied Res landed about the same time and place and built comparable projects.

Mill Creek's Denver story starts in 2012 with a project called The Douglas and DenverInfill was all over it with their New Project post when it was still referred to as 2300 Walnut to the Final Update.

The Douglas Apartments - 2300 Walnut St


DenverInfill

The Douglas was sold by Mill Creek in October of 2014. Their next project was The Casey and again DenverInfill has the Final Update.

Note: all images below (unless otherwise noted) are courtesy of Mill Creek via Apartment Finders

The Casey Apartments -2100 Delgany St


Image courtesy Windsor Communities via Apartment Finders

Mill Creek sold The Casey in April 2016. Next up is Post River North which opened in Fall of 2017.

Post River North Apartments - 1859 28th St



At this point:
Mill Creek changed up their strategy. Rather than seeking larger sites to build ~300 units, they shifted to finding niche sites in appealing neighborhoods to fit their "Modera" brand apartments.
Next up is Modera Observatory Park which opened in January, 2018

Modera Observatory Park - 1910 S Josephine St



Next up is the Modera River North Apartments which opened in August, 2018.

Modera River North Apartments - 2850 Blake St




Modera Cap Hill - 1200 Grant St




Modera LoHi - 2555 16th St



The last project currently under construction and opening Summer of 2021...

Modera Modera West Wash Park - 400 North Grant Street


Image courtesy of Mill Creek via MultifamilyBiz

[BG918]

Originally Posted by laniroj

Sure doesn't feel like there was a recession, moreso just a government induced depression for a few unlucky industries and all of the people who rely on those industries for their livelihoods. It's amazing how quickly we seem to have adapted to a wildly different lifestyle and economy (that's good news). The fact that so much development continues moving forward and good jobs continue being created shows how resilient our economy was and generally is in this country. While it's a tale of two stories, knowledge continues to be power and specialization continues to be wealth. That said, as someone who takes lease-up risk and holds my breath each time units come online, the flow is totally unpredictable now. Some weeks gobs of units fly off the shelves (leases) and other weeks it's winter bird watching in the arctic, which is a significant change from pre-pandemic and even from early pandemic months when leasing was still strong. Not necessarily much worse, but a bit slower, much less predictable, and a little tiny bit worse.

I work in the construction and development industry in Denver. We had no slowdown last year and had higher volume and profits last year than 2019. This year looks to be even better. So yes it all depends on your industry - the pandemic and recession has targeted some while seemingly not affecting others.

[TakeFive]

Side Pocket Topics

Being fascinated by (some) demographic info there's a few new 'releases' worth noting.

Leaving Denver? Here are the top destinations for transplants from the Mile High City
Feb 19, 2021 Rob Powell - Stacker via KDVR31

The top four destinations are within the state.

• 1. Colorado Springs - 2. Boulder - 3. Greeley - 4. Fort Collins - 12. Grand Junction

Top Fifteen out-of-state destinations:

• 5. Phoenix - 6. Seattle - 7. Los Angeles - 8. Houston - 9. Dallas
• 10. Washington DC - 11. Las Vegas - 13. Chicago - 15. San Diego - 16. New York
• 17. Austin - 18. Tampa - 19. San Francisco - 20. Minneapolis - 21. Kansas City

Job migration and the continuing exodus out of California

Note: This was posted in the Austin Business Journal but it's worth looking at the bigger picture so I've selectively edited

https://www.bizjournals.com/austin/n...ow-strong.html

Research presented by the Bay Area Council Economic Institute shows Central Texas and several other cities are welcoming key white-collar jobs at a notable pace while cities such as San Francisco wave good-bye to them by the thousands. “We had been digging for some time for evidence of this shift from high-priced metro areas to what we’re calling ‘new tech hubs.’

2020 data shows:

... when it comes to the growth of information, finance and professional services jobs... according to the Economic Institute, based on data from the U.S. Bureau of Labor Statistics.

Following Austin, Boise saw job growth for those sectors of 2.9%; Dallas, 2.8%; Seattle, 2.3%; Denver, 1.7%; Nashville, 1.2%; San Diego, 0.8%; and Sacramento, 0.1%.

Both San Francisco and San Jose saw jobs decline 2.6% in the information, finance and professional services sectors. At the bottom of the list were Chicago, down 3.9%; Los Angeles, down 6.2% and New York in last place with a 7% decline.

One surprise in the chart was the rather poor showing by Salt Lake City and Miami, two cities that have grabbed national headlines for their success in attracting companies to move or expand in their regions. Miami saw a 2.7% decline in the number of jobs in information, finance and professional services while Salt Lake City saw a 3.9% decline.

Some people tend to hyperventilate over this stuff but the Bay Area has long been an incubator for the rest of the country. Plus, California did have record tax revenue last year.

How's 'peer city' Seattle doing?

Seattle's core apartment market is 'brutal' for landlords
Feb 16, 2021 By Marc Stiles – Senior Staff Writer, Puget Sound Business Journal

Net demand for apartments in Seattle and Shoreline tumbled in 2020 by nearly 7,900 units, according to new data... Unlike a dozen years ago, when the recession tamped down the supply of new units, King and Snohomish counties have a total of 20,000 new units coming this year and next. These are units in lease up or under construction, not proposed...

Year over year in September, rents declined 9.5% in Seattle and Shoreline. For landlords, it's especially bleak in the the core of the city — downtown, Capitol Hill and Pioneer Square. "Rents are down by about 15% in the core, and then they're offering two months' free rent. That's another 17%, so call it 30%. It's brutal what's going on," O'Connor said.

I also read where Boeing is downsizing their Washington footprint but there's apparently instant demand for taking over their real estate.

Good news for the future of our country

https://www.bizjournals.com/austin/n...for-plant.html

Samsung is reportedly looking to make an investment of up to $17 billion in its next U.S. facility, with eyes on Austin, Phoenix and upstate New York as possible sites, according to national news reports.

With automation continuing I'd expect to see manufacturing or fabrication growing within our borders. Access to lower cost power is one key along with a need for fewer workers.

The Bad News for Texas
is that they've haven't yet figured out how to run a reliable electrical grid.
CNN does the fact-checking.

[jhwk]

Originally Posted by BG918

I work in the construction and development industry in Denver. We had no slowdown last year and had higher volume and profits last year than 2019. This year looks to be even better. So yes it all depends on your industry - the pandemic and recession has targeted some while seemingly not affecting others.

Hmm. I am on the design side and our backlog situation is a little uncomfortable. We stayed busy with projects already in the pipeline all year but had a slow winter season. Things have started to pick up in February.

[BG918]

Originally Posted by jhwk

Hmm. I am on the design side and our backlog situation is a little uncomfortable. We stayed busy with projects already in the pipeline all year but had a slow winter season. Things have started to pick up in February.

I should note most of our projects are multi family. We do have somewhat of a gap with new starts this summer but even that has started to fill up. We have also been hiring the entire time and can’t find enough qualified workers.

[spr8364]

Originally Posted by jhwk

Hmm. I am on the design side and our backlog situation is a little uncomfortable. We stayed busy with projects already in the pipeline all year but had a slow winter season. Things have started to pick up in February.

I also am on the design side and our work slowed considerably. We specialize in exercise gyms, and most of our potential projects simply stopped.

[SirLucasTheGreat]

Does anyone know where the Denver In-N-Out location is being planned for? I read an article about the Lone Tree location and they indicated that Denver was one of 6 other Colorado locations in the planning phase. I don't really care for In-N-Out but if they opened a location at Market Station that would really catalyze other retail options there.

[CurtisParkChris]

Originally Posted by SirLucasTheGreat

Does anyone know where the Denver In-N-Out location is being planned for? I read an article about the Lone Tree location and they indicated that Denver was one of 6 other Colorado locations in the planning phase. I don't really care for In-N-Out but if they opened a location at Market Station that would really catalyze other retail options there.

I recall Stapleton/Northfield, N off the Central Park Exit

[SirLucasTheGreat]

I guess that makes sense given the suburban nature of their current locations. Wasn't sure if they would opt for a more urban environment

[wong21fr]

Originally Posted by SirLucasTheGreat

I guess that makes sense given the suburban nature of their current locations. Wasn't sure if they would opt for a more urban environment

Nope. Central Park is more popular than Market Station right now.


Hell.... we're getting a Snooze and a QuikTrip!

[TakeFive]

Originally Posted by wong21fr

Nope. Central Park is more popular than Market Station right now.

Hell.... we're getting a Snooze and a QuikTrip!

Wow, QT is coming.

QT prices for gas will be (at least) a penny lower than say 7-Eleven; the exception would be when prices are on the move (like recently), then it depends on timing of deliveries. Not counting independent's the exception for better prices would be Costco or Sam's Club which typically run a (minimum) nickel lower.

Great stores; other than Kroger stores (down here), QT has the latest and quickest credit card processing equipment. Quite snappy!

[COtoOC]

Originally Posted by wong21fr

Nope. Central Park is more popular than Market Station right now.


Hell.... we're getting a Snooze and a QuikTrip!

We're getting a Snooze? Where? Not that it probably matters. I've only been able to get into one once in my life. On a workday, 9 am, and still had to wait 45 minutes.

I'd rather we got a WaWa than a QuikTrip. Mostly because I just like saying "WaWa"

[TakeFive]

I got another one of those itches

Originally Posted by BG918

600 Park Ave is under construction, another Greystar project. Their recent Denver portfolio includes Parq on Speer (Speer & Bannock), The Pullman (19th & Wewatta) and The Fitzgerald (18th & Market) along with the proposed Parq II at 10th & Bannock.

I drew a total blank when trying to recall this site, which made me suspicious. What if something nefarious was going on?

From 2012
This site was part of a land assemblage listed for sale back in 2012.

This is a compilation of 11 parcels. Zoned D-AS and located in the Five Points Redevelopment district this property offers great flexibility to developers. With the Light Rail running along Welton Street this is a great opportunity for a mixed use project.

Located between 21st and Park Avenue West on Welton Street. In the historic Five Points District.

From January, 2017
Ryan Dravitz/DenverInfill had the 'breaking' story. They had a very good reason for their 'heightened' interest.

Last year, the Arapahoe Square Design Advisory Board was formed by the city and they are busy reviewing new projects, such as the one we are featuring today. This board will make sure that projects in Arapahoe Square meet zoning and design guidelines. Head on over to their website for more details about the board and design guidelines. 600 Park Avenue, a 13-story, 238-unit apartment building, is one of the first projects reviewed by the board.

From October of 2018
https://www.bizjournals.com/denver/n...ts-denver.html

600 Park Avenue, as it's called on plans submitted to the city, will be a 13-story building with 45 studio units, 147 one-bedroom units, and 46 two-bedroom units. Kansas City-based Alsation Land Co. is the developer, according to those plans.

The parcel it will be constructed on is currently a parking lot, which Alsation purchased back in January for $5.163 million, according to Denver County public records.

From August, 2019

Greystar Acquires Site of New Multifamily Project in Denver

The Carlton Group, an international real estate investment banking firm, advised the seller, Alsation Multifamily Group, on the investment sales transaction

But if you think Alsation plans to take their money and run; think again. Oh no, they aren't going anywhere; they're sticking around to make sure Greystar does a nice job.

The property was acquired by Greystar and Alsation will participate with Greystar in the development of the project as a joint venture partner

My 'deep state' question
is who the heck is The Carlton Group? It seemed to ring a distant bell like I may have read about them somewhere. Small potatoes, who cares? Think again.

CARLTON RAISES MORE THAN $2 BILLION AT 20 TIMES SQUARE AND 1568 BROADWAY IN TIMES SQUARE, NEW YORK
May 4, 2015

See 20 Times Square; see 1568 Broadway Times Square NYC. Notice they're adjacent properties.

At this point I don't want to ask anymore questions. I've been watching too many Martin Scorsese movies on Netflix.

[DenvertoLA]

Originally Posted by SirLucasTheGreat

Does anyone know where the Denver In-N-Out location is being planned for? I read an article about the Lone Tree location and they indicated that Denver was one of 6 other Colorado locations in the planning phase. I don't really care for In-N-Out but if they opened a location at Market Station that would really catalyze other retail options there.

that would be amazing. Also a store without a drive through would prevent them from overflowing and clogging the street.

In-N-Out traffic suuuucks

[Curtis Park]

Who on here knows about how leasing works in new developments?
I walked by McGregor Square and was thinking about the Tattered Cover and if they got a huge rent break to move in there and make it attractive to future residents? I know each deal is different but I'm just curious if it's standard to lure good retail to new residential buildings so that the future tenants see some inviting places to visit in their own building.

[Ich]

I saw there was a construction permit filed for 3000 N Huron St. 13 story apartment building. Does anyone know what that’s supposed to look like?

[wong21fr]

Originally Posted by Ich

I saw there was a construction permit filed for 3000 N Huron St. 13 story apartment building. Does anyone know what that’s supposed to look like?

Found this image from an article on an equity partner of the developer, CA Residential. The details in the article match with what's currently proposed:

[The Dirt]

Here are some concept renderings from the 38th & Fox area. Not sure how valid these are.







https://www.engine8designs.com/home-...9i5urklw9fuoz2

[Interzen]

Building permit issued for 625 Santa Fe Drive. Renderings are pretty blah.

Credit: First Stone Development





I bet the combed concrete and wood paneling will look dated from day 1 and age poorly. Maybe they will at least build out the sidewalk/streetscape to the new extents bound by the traffic bollards and kickstart that transformation.

I really wish the new mixed use on Santa Fe could at least match the street presence of the Villas de Barela development (northwest corner 10th and SF that used to house Interstate restaurant.) Two stories of contextually appropriate brick and glass and good corner treatment on that building totally distract from, and partially make up for, the ultra cheap finish on the top two floors.


Credit: Google Maps