[shoowaa1]

Article in today's Post:

================


55-story condo tower joins skyline-transforming rush
By Margaret Jackson
Denver Post Staff Writer
Rendering depicts the planned 55-story condo tower. (Special)
A Toronto company on Thursday announced plans to build a 55-story, 200-condominium residential tower in downtown Denver, adding to a frenzy of development proposals that could dramatically alter the city's skyline.
Great Gulf Group said it plans to spend about $165 million on the building east of Larimer Square at 14th and Lawrence streets, near Lower Downtown.
It would be among the city's tallest buildings.
The company on Wednesday purchased the 25,000-square-foot site from Denver-based Westfield Development Co. The sale price was not disclosed.
"I think it's the best location in Denver," said Gary Switzer, Great Gulf's executive vice president. "We're on the border of the central business district where the zoning changes in LoDo. It's the last opportunity to do a tall building and a very dense building without being restricted by the height limits of LoDo."
Some real estate skeptics doubt whether all of the proposed buildings will be built. But one competing developer praised the recent moves.

"I think it's good that we're finally starting to pull the residential base into the downtown core," said Michael Geller, who hopes to build a 31-story condo tower near 14th and Speer Boulevard. "The lack of a residential base is something that's been holding this downtown back. The more people we have downtown, the better chance we have of bringing better-quality retail. I strongly applaud any of those kinds of project that will start to bring people into downtown."

John Huggins, Denver's director of economic development, said he thought there's demand for at least the 1,000 or so downtown residential units now on the drawing board.
"Perhaps some of those proposed projects may change as they move to fruition, but I believe they all will be built in one form or another," he said.
Founded in 1975, Great Gulf developed a 36-story tower in Toronto, as well as a number of single-family subdivisions in Texas and Florida. Its Ashton Woods Homes subsidiary developed The Pinery, a 771-home development in Parker.

The company's proposed Denver tower is a few blocks from the Denver Center for the Performing Arts, across the street from a proposed Four Seasons hotel and condominium complex, and adjacent to the Larimer Square Historic District.

However, the site is not part of the historic district. Its zoning is consistent with the rest of downtown, so the project's height should not be an issue, said Julius Zsako, communications director of community and planning development for Denver.
The Four Seasons, proposed by Hotel Teatro developers Michael Brenneman and Jeff Selby, is expected to be about 50 stories tall and include 140 condominiums atop 20 floors of hotel rooms.

Asked about the plans for a competing residential tower across Arapahoe Street, Brenneman cautioned that Great Gulf needs to be sensitive "when you're backing up to Larimer Square. That's truly one of our gems. It's a very old brick block, and it needs delicate handling."

Also in the works
Other downtown projects announced recently:

A 41-story tower near the Colorado Convention Center from Clayton Lane developer Randy Nichols.
An age-restricted condo tower near the convention center by developer Charlie Woolley.
Osborn Development's 31-story One Lincoln Park.
Geller's 31-story condo tower.
Geller's site was part of a land swap in which Mayor John Hickenlooper's administration gave up the land in exchange for property it needed for the justice complex.

Geller has been seeking a boundary change that would put his property out of the historic district and allow the tower.
Councilwoman Judy Montero has convened a group of stakeholders to work with Geller on plans for the site.
"The tower is still being talked about, but we're also talking about what it would look like if he developed it within the historic district," said Kim Kucera, a Montero aide.
Geller said he also is considering several 55- to 85-foot shorter buildings interspersed over the site.
Units in Great Gulf's tower, designed by Peter Clewes of Toronto-based architectsAlliance, are expected to range from 1,200 to 7,000 square feet, with prices starting around $550,000. The building's amenities will include a doorkeeper, concierge, valet parking and on-site recreational director. "I think there's a really strong market for those units from people who are living downtown in dated high-rises and on Cheesman Park," said Dee Chirafisi, broker/owner with Kentwood City Properties who is marketing the project for Great Gulf. "Fourteenth and Lawrence has the advantage of location. People who are looking for the high-rise lifestyle generally want to be right in the middle of everything."

"Working on a hunch"
The Denver project is somewhat of a gamble for Great Gulf, which is betting on people selling large houses to relocate downtown.
"We're working on a hunch because of what we've seen in other cities," Switzer said. "They really want to be downtown and close to shopping and have walkability. They don't want to get in their cars."
Whether all the projects will be built is a great debate in real-estate circles.
When plans for another of the proposed towers came to light in December, an official from the Downtown Denver Partnership said then that the flurry of proposed high rises was a testament to the demand for housing but warned not all could be built. "The feasibility of all of them coming to fruition depends on the assemblage of land, financing options and all the different pieces that have to come together for development. That will probably weed some of them out," said Kate Peterson, housing program manager for the Downtown Denver Partnership. Staff writer Margaret Jackson can be reached at 303-820-1473 or mjackson@denverpost.com.

http://denverinfill.com/sspuploads/14thLawrence.jpg

Scott (Shoowaa)

[volguus zildrohar]

Ooh, sunblocky. Denver's in on the rush too.

[canucklehead2]

Sweet design. Good news for the Denver skyline..

[Stephenapolis]

I like the height. But it is too much of a box. That is the last thing Denver needs dt. I still hope it gets built though, box or not. Denver could use more residential dt.

[soleri]

It's great downtown Denver is attracting so much interest in high-rise condo development, but there's been so many proposals lately that it begins to feel a little unreal. Certainly pre-sales and such will tell the story. This late in the real-estate cycle, to even have two of this proposals built wouldn't be shabby.

[TOBoy]

Great Gulf really took the time to design the 18 Yorkville they did here in Toronto to stand out. They used quality materials and did great landscaping. Instead of putting up a building, they worked it to make it integrate with the neighbourhood. With Great Gulf you can be sure you are going to get a quality building.

[FrancoRey]

It looks like this forum has been dead for eons, so I'm gonna add a new site which may liven this damn link again:

www.greatgulfdenver.com

This is the sales webiste for the tower. It's ony been up for about two weeks, but this is a true sign that Great Gulf is serious about getting this project started before year's end (groundbreaking in Dec?) Let's all register as priority on the sales site; then we can get this project moving. Profiles: we all make 300,000+ a year, are arrogant a-holes, and want a customized aparment. Got it? JK.

http://www.denverinfill.com/images/blog/2006-10/2006-10-02_greatgulfdenver.jpg

[BANKofMANHATTAN]

I don't care for it - it kinda looks like a big cardboard insert standing on end. Anyways, good for Denver regardless of my opinion.

[Coldrsx]

i like it...

[samoen313]

i like it too. it's very simple, but still elegant.

[JACKinBeantown]

It's a little better than a plain box. It's a textured corrugated box. Still, I like it's skinniness and height.

[WHISTLERINMUSKOKA]

Sexy tower.

[craeg]

jenga

[volguus zildrohar]

Jenga, ha.

What exactly is Denver's condo market like?

[FrancoRey]

Check out the "Denver Projects and Construction" Forum on the Cities links. It'll show you like the rest of most big metropolises, it is exploding. To be brief, three 50+ story condo projects, a 41 story "Spire" project, couple 30's, and several 20's followed by zounds of smaller projects. Just take a look at the last 5 pages or so. Prepare to be amazed!!!:jester:

On another site: www.Denverinfill.com will show you EVERYTHING you need to know about Denver projects. I find the blogger tab has the most up-to-date info.

[FrancoRey]

Okay, so everyone is going ape today for the big boys in the world: Burj Dubai hit its 85th floor AND 1000-foot mark today, making it an official "supertall" structure. 400 Lake Shore Drive in Chi-town announced its building teams today, making it look like that 2000-foot behemoth is gonna start to rise by June. Well, we in Denver have hardly anything so glorious. But we're trying!

Here's the new rendering for the condos at 14th and Lawrence, the Great Gulf Tower. Although sales are promising, the developers at Great Gulf have shaved off the upper four floors b/c of lack for the desire of all the previous units :( . Regardless, this baby will still have 51 floors, be over 500 feet tall, and will compete for the tallest ALL-residential tower outside of Chicago and New York if groundbreaking occurs on time in April and is finished before the competing projects in Miami and Sac-town. Corner decks have been replaced with frontal overhangs, and the glass has been given a more "blue hue" than it previously had. Overall, I think it looks much better. Look for updates in the following weeks for when this tower will finally be in the clear enough to set an official groundbreaking! :banana:

http://i117.photobucket.com/albums/o76/FrancoRey/greatgulf.jpg

Courtesy of www.greatgulfdenver.com website.

[WonderlandPark]

Well, it will be the tallest between the West Coast and Chicago, One Rincon 641' is well on its way up. But GO DENVER, your skyline needs an update or three!

[Dale]

I really like the revision! Go, Denver!

[omp835]

Is it me or is the building massed all wrong for its urban context? The building should be low and wide. And although the tower would be great on it's own, it looks completely misplaced on top of that garage podium.

[FrancoRey]

LOL....never really thought about the rations of height to width on this thing. True though, it is a skinny sucker for 51 stories. The real issue for this tower for awhile was the fact that it's going up in a district called LoDo, which is predominately an area with traditional architecture like bricks and such, with much lower buildings (50-200 feet). Everyone thought that the glass and steel would clash with the district's feel, but in the end it never became an overly concerning issue. Also there were height limit concerns. But in the end, this thing is going up...last check-up suggests it may challege for Denver's 5th tallest slot. Currently the thing is FINALLY supposed to break ground come May/June. The sales office just started construction.

[Dream'n]

Maybe your building in Denver and our tallest residential in Minneapolis, "The Nicollet", will break ground at the same time? Endlessly waiting............

[StevenW]

I like it. Tall and relatively thin. :)
How tall exactly is it?

[FrancoRey]

Unfortunately they (Great Gulf Developers) have yet to give an exact foot-hieght for the building. But there are 51 residential floors, as well as a five-ish story parking garage/lobby at its base. So...with normally 10-11 foot floors in most residential highrises, you can bet this thing will prolly be in the neighborhood of 500-600 feet tall. That's my guess anyway...:D

[FrancoRey]

So earlier today, my good friends over at Denverinfill.com post this little jewel on their website. Yes, it's true, a sign has been put on the lot for where the Great Gulf Tower (now 1401 Lawrence) will be constructed. If this isn't clear evidence of an imminent project, I don't know what is. Keep those fingers crossed for a summer groundbreaking of this 51-story, 550-foot beauty! :fingerscrossed:

http://www.denverinfill.com/images/blog/2007-02/2007-02-20_1401law_sign2.jpg

[westsider]

Those guys look pretty proud of themselves.

[FrancoRey]

So in the last few days the lot was fenced off where the 1401 Lawrence tower is set to rise. Up to this point, all inquiries and reservations for condo units were taken online. Now the sales office will be built as the lot is cleared for a potential groundbreaking! Start reserving those units now, ladies 'n gents! When the sales office is done, go check out the miniature they'll have too. :banana:

Article on 1401 Lawrence: http://www.denverinfill.com/images/blog/2007-05/2007-05-22_construction_of_sales_center_scheduled.pdf

http://www.denverinfill.com/images/blog/2007-05/2007-05-22_1401_lawrence.jpg

Courtesy Denverinfill.com

[djvandrake]

Cool! Great news for Denver. Any word on the height of this one? The design is a little MEH but with 55 floors it'll be a significant presence.

[beanhead4529]

IMO downtown denver is way to boxy. they should put some decoration on top, either in the form of a spire or decorative crown. putting another glass box would just add to the monotony.

[FrancoRey]

Here it is again: To answer the previous question, the building will be 550-560 feet tall.

http://i117.photobucket.com/albums/o76/FrancoRey/greatgulf.jpg

Also, I agree with the need for a more decorative top. BUT, I do believe this tower calls for some sort of lighting scheme on the roof. As for a spire, that can be left to this guy being built next door:

The small lot just to the right of this Four Seasons (across the street) is where 1401 Lawrence is slated to be built. Personally, I think these two towers will set-off each other very nicely!

http://www.denverinfill.com/images/blog/2007-04/2007-04-24_fourseasons2.jpg

Courtesy of www.greatgulfdenver.com/denverinfill.com websites.

[StatenIslander237]

I haven't heard of that guy next door. What's that project's name, any other info on it you can give me?

[SacTownAndy]

I haven't heard of that guy next door. What's that project's name, any other info on it you can give me?

Here you go:

http://forum.skyscraperpage.com/showthread.php?t=126208

[FrancoRey]

Thread bump! :deadthread:

If anyone has photos of the sales center, please post them! I may try to get my own pics in the next week or two. Most recent chatter says this project is still a go, despite its slow progress.

[sbarn]

http://www.denverinfill.com/images/blog/2006-10/2006-10-02_greatgulfdenver.jpg

I think I like the original design better... it'd look great in Manhattan.

But nevertheless, its a nice tower and a great addition to Denver's skyline.

[FrancoRey]

Sorry I forgot to say in my previous post: The NEW and OFFICIAL height for the Great Gulf Tower has been released:

Number of Floors: 51

Number of Parking Floors: 6 (2 below ground, 4 above ground)

Additionally: 2 'utility floors' above the top penthouse

Overall height: 587 feet and 3 inches (don't ask me how they got the inches; I bet it'll be off when it's done :haha:).

Therefore, it will be the tallest all res. tower between Sacramento and Dallas if it is built.

[GoldenBoot]

...it will be the tallest all res. tower between Sacramento and Dallas if it is built.


Actually, Austin's "The Austonian (http://www.theaustonian.com)" will be almost 100' taller (683') - and it's all-residential (save a small amount of ground level retail). Groundbreaking is planned for this Friday.

In any case, I really like this tower!!! I hope it's built!

[Pistola916]

Therefore, it will be the tallest all res. tower between Sacramento and Dallas if it is built.

Actually it will be the tallest between SF and Dallas. Sacramento's "Towers" were cancelled because the developer ran out of money.

[FrancoRey]

Actually it will be the tallest between SF and Dallas. Sacramento's "Towers" were cancelled because the developer ran out of money.

Ooooo I like this assesment better...and Austin doesn't count Golden Boot b/c it's further from Denver than Dallas is by distance in miles...HAHA!! :notacrook:

[FrancoRey]

The Great Gulf Developers have completely re-done their site...it looks like they are really pushing for the start of this tower badly. Last assessment in the grapevine from project leaders said groundbreaking next June...almost 18 months late, but better late than never :D

www.greatgulfdenver.com

Furthermore, here is a photo of the sales center on-site for where the tower is to be built. The photo on the left shows the site about 3 months ago. It's almost done! Thanks for the pic KidKonza.

1401 Lawrence (Poor resolution.)
https://webfiles.colorado.edu/rasmusse/www/denverstreetcars/9.21/28.jpg

[denveraztec]

A lot of surface work still going on, but any word on an official 'gound breaking' ceremony yet?

[FrancoRey]

Well, currently the sales center will dictate when or even IF this project gets off the ground. As the sales center is built on the site of the future tower, they will need a substantial amount of presales before the building is a go. They can't really build the sales center only to tear it down in a month or two, as this would be unprofitable (even though it is essentially a jazzed up trailer with roots :haha:).

Last assessments at PESSIMISTIC guesses put this tower's official groundbreaking at may-June '08 at last revision. Keep in mind, Denver's Four Seasons 45-story tower across the street took 2 years, and 10 months to finally go from proposal to built. If Great gulf holds the same pace (I hope not), then that means it should break ground exactly one YEAR from now in Oct/Nov '08. I like next summer much better, or SPRING if sales keep up in DT Denver as they have been, even through the mortgage crisis.

Keep tuning in for more! :D

[FrancoRey]

So here is an update posted on our local thread in Denver by my fellow forumer Blm3034. These pictures are courtesy of a 1401 salesman who gave them to Blm. I most CERTAINLY would be more interested in a unit after seeing these nice pics of the sales center and the model. The amount of time AND money they put into the pre-construction stages are impressive. Now, if I only had about $600,000 dollars for a unit in this 55 story beauty. :(

Sales Center looking pretty darn good!

http://aycu11.webshots.com/image/33970/2001701679327511828_rs.jpg (http://allyoucanupload.webshots.com/v/2001701679327511828)


Model of 1401 Tower in Sales Center Looking REALLY GOOD!

http://aycu29.webshots.com/image/30028/2001792111232102261_rs.jpg


Let's keep hoping for a groundbreaking by next summer! :banana:

[StevenW]

Awesome project!

[FrancoRey]

A new rendering for this tall beaut (the possible NEW highest res. tower in Denver and between SF and Dallas)!

http://media.rockymountainnews.com/drmn/content/img/photos/2007/11/14/435723601_t600.jpg

Rockymountainnews.com

AND...an article by the Rocky Mountain news, which claims a construction start by December 2008 at the latest. Hopefully, it will begin sooner, but a go on this project now seems inevitable. I can't wait to move this baby to the construction thread! (600+ feet of glassy goodness!)

Keep looking for updates!!! :tup:

Courtesy of RMN:

The new sales center for what will be the tallest residential tower in Denver cost $1.2 million just to build and furnish.

That's also the most popular price for a unit in the planned 51-story building.

The sales center, which will be disassembled when construction starts in December 2008 on the $165 million, 145-unit project at 1401 Lawrence, features an exact replica of a 2,500-square-foot unit. Those units are expected to sell for about $1.2 million. Units start at about $800,000.

The media was given a tour of the center by the developer, Toronto-based Great Gulf, on Wednesday, but prospective buyers who have reserved units have been given private showings over the past few weeks.

The center, designed by Cecconi-Simone Interior Design of Toronto, will be open only for private showings and events.

What has drawn potential buyers?

"I think it has been the incredible attention to detail and the design," said Sandra Frasson, marketing director for Great Gulf Homes.

For example, some of the sinks, instead of having rounded or flat bowls, drain at a fairly steep angle. Art by Dale Chihuly, famed for his glasswork, will be displayed throughout the building.

The center also has a computerized screen that shows the views from each floor.

"If you're buying in a 51-story building, the reason you are buying is for the views," Frasson said.

"We thought a lot of people would want the mountain views, but we're also finding a great deal of interest in the downtown views."

Contracts are being accepted for condos in the building. So far, interested buyers have ranged from professionals in their 20s to 80-year-olds, Frasson said. At least 30 percent to 40 percent of the units must be presold before Great Gulf starts the 21/2-year construction process, she said.

The building will be constructed across from the Four Seasons Hotel and Private Residences Denver. Dan Fead, a broker with Fuller Towne and Country, said he isn't sure if that is good or bad.

"That is a puzzler to me," Fead said. "You look at restaurants, and they do well when they are right next to each other. But if that carries over to new high-rise condo projects, I just don't know."

He said units in both buildings that look at each other might be tough to sell, because they won't have the commanding views people expect in that price range.

Fead said units in 1401 Lawrence are priced below the Four Seasons and the Ritz-Carlton under construction, although they will be more expensive than Randy Nichols' Spire a few blocks away on 14th Street. Nichols has temporarily halted construction of the Spire while he lines up new financing.

[alphawolf]

This is by far my favorite project going on in Denver.

[SnyderBock]

I like the 635' Four Seasons under construction in Denver even better but this project [1401 Lawrence] right across the street is a close second in my book. There's a lot going on in Denver right now...

-Four Seasons - 45-stories, 635' with spire, $350 million (Under-construction)
-1401 Lawrence - 51-stories, 587' to top, $165 million (pre-sales)
-Spire - 42-stories, 525' to top, $175 million (under-construction)
-Two Tabor Center - 42-stories, ~550' to top (proposed/design phase)
-One Lincoln Park - 32-stories, ~385' to top (under-construction)

There is even a rumor that the proposed 1100 15th Street is back on the drawing board. It is a lot owned by the developer, Hines. Hines had once planned to build a 42-story, 500'+ office building there. This lot shares the other half of the same block as the Four Season tower under construction and is across the street (catty-cornered) from 1401 Lawrence.

For a complete rundown, CLICK HERE!! It's well worth it! =) (http://forum.skyscraperpage.com/showthread.php?t=132788)

[SnyderBock]

Is it me or is the building massed all wrong for its urban context? The building should be low and wide. And although the tower would be great on it's own, it looks completely misplaced on top of that garage podium.

The design for 1401 Lawrence, was in it's early stages back then when you said this. Here is a newer rendering of the urban, street-level scene. How do you think they have done here? It certainly looks better than just a podium (as it once looked like it would be). I kind of like the street-level rendering.

http://i207.photobucket.com/albums/bb84/SnyderBock/14thlawrence4.jpg

[FrancoRey]

Who changed the forum title for this tower (even though it really wasn't a title)?

To the Admin:

Name- 1401 Lawrence
Height- 587'3"
Floors- 55 (51 residential, 4 garage/retail)

[FrancoRey]

That was fast! (less than an hour) :D

[BANKofMANHATTAN]

I like this a little better now seeing the model...

[FrancoRey]

It indeed will be a great res. tower to further Denver's push into such a market. Dare I say, we are finally going to reach the ranks of New York, Chicago, Miami, and San Fran in this regard. Not bad for a city that's not on ANY type of coast! :banana:

BTW, check out this shot from the sales lobby of the building's model: Imagine it when it's done for real...:slob:

http://www.denverinfill.com/images/blog/2007-11/2007-11-25_1401lawrence2.jpg

Courtesy Denverinfill.com

[rds70]

Who changed the forum title for this tower (even though it really wasn't a title)?

To the Admin:

Name- 1401 Lawrence
Height- 587'3"
Floors- 55 (51 residential, 4 garage/retail)

Nope. Its only 51 floors total. Count the floors on the model - 46, plus the podium.

[SnyderBock]

51-stories above street level, plus a double-height mechanical level above those. It will be 587'-3" tall from street level to the roof over the mechanical level.

[FrancoRey]

Thread Bump!!! :deadthread:

So I was just browsing the 1401 Lawrence site anticipating my future residency there :rolleyes:, when I noticed that they have added actual floorplans to the website. They have also added more interior photos and views of the residences. This is new to me, previously they did not have such a tab.

I'll take the 'Ivory' residence on floor 50, thank you :cool:

1401lawrence.com --pick the 'residences' tab.

[pablosan]

Ahh, no. That floor is all mine.

[denveraztec]

Can I at least come by to water your plants Pablosan?
:hyper:

[FrancoRey]

So, there haven't been many updates for this project as of late! :deadthread:

However, that doesn't mean there isn't more to share about this building. Part of Great Gulf's sales center in Denver is a model of a mock-up suite. Although most images for the model suite are archived in the 1401 Lawrence site itself (and are cgi), there are additional photos. One of the most prominent features are the future balconies that will cover the entire 51-story tower, complete with gas hookups for grills, as well as water and electric utilities. Here is a real-life image of a potential finished balcony from the Great Gulf Sales Center:

Courtesy of 1401lawrence.com/wordpress

http://i117.photobucket.com/albums/o76/FrancoRey/img_8712.jpg

Here are also some additional photos from inside the mock-up, showing a very well finished bedroom and kitchen.

http://i117.photobucket.com/albums/o76/FrancoRey/img_8729.jpg

http://i117.photobucket.com/albums/o76/FrancoRey/march-13-broker-party-003.jpg

Great Gulf still says that sales are steady and strong, and that they still expect to break ground on this project before year's end.

[CHAPINM1]

This will happen, even though the overall real estate market is in the tank doesn't mean that there is a demand for this project, especially it being in downtown Denver! If I considered moving to Denver knowing I was going to be staying there, I'd definetly check this project out. Denver is a city that is growing fast and do have the demand. Keep us updated on this one... Thank in advance!

[Matt]

And the dream is over...

Plans to build a high-rise condo building at 14th and Lawrence streets have been canceled.

Buyers were notified late Thursday that Toronto-based Great Gulf Group is not moving forward with the project and that their deposits will be refunded.

Great Gulf had recently raised prices for the 200 residences in its planned 51-story tower at 1401 Lawrence St. by up to 5 percent in an effort to get potential buyers off the fence. The move resulted in several sales but not enough to move the project forward.

"As you are aware, the downturn in the U.S. real-estate market continues, and, unfortunately, Denver is no exception," the company said in a statement. "Due to these conditions, Great Gulf Colorado LLC has not achieved the requisite pre-sales to go forward with the 1401 Lawrence project and, regrettably, is canceling the project."

http://www.denverpost.com/business/ci_9428871

[WonderlandPark]

oh man, I really loved this tower. damn.

[FrancoRey]

See what happens when I try to 'make' news about a floundering tower? GOD DAMN IT this sucks! :hell: To be honest, I am somewhat surprised, especially considering it wasn't the financing that killed the project, or the location, or the planning to get it off the ground. There simply weren't enough units sold or demand for this tower's price range (I always thought 600k and up would be a tough sell). Still, surprising. Great Gulf seemed to be confident about their chances of continuing to get contracts for units to attain a substantial number by December for groundbreaking. I guess they forcasted there wouldn't be enough sold in the next 6 months. ChapinM1, don't read this. You won't like what you see.

Hopefully the project is only cancelled temporarily, but sadly I feel this wonderful project will never be resurrected unless some good things happen economically in the next few months.

RIP, 1401. :(

[FrancoRey]

A little more on the death of this great project and its possible implcations on the overall market

Condo tower's demise rattles market

Experts divided on what it means for luxury sales
By John Rebchook, Rocky Mountain News

Monday, June 2, 2008


Experts in the real estate community are divided over whether a Canadian developer's decision to pull the plug on its $165 million, 51-story luxury condominium project at 1401 Lawrence is a harbinger of things to come or an isolated incident.

When the project was announced in January 2006, it was heralded as the tallest residential development in Denver's history. It promised to change Denver's skyline.

But that all came to a halt on Friday, when Great Gulf closed its $1.5 million sales center and released this statement: "As you are aware, the downturn in the U.S. real estate market continues, and unfortunately Denver is no exception. Due to these conditions, Great Gulf Colorado, LLC has not achieved the requisite pre-sales to go forward with the 1401 Lawrence project and, regrettably, is canceling the project."

Tracy Aiello, Denver spokeswoman for the project, said Gulf will not comment beyond their press release.

The company paid $500 per square foot, or $12.5 million, for the land at 14th and Lawrence streets, records indicate.

"There aren't any future plans to sell it or not to sell it," Aiello said. "They have not announced any future plans at all. They're really watching the market."

'An isolated issue'

She said the 145 suites in the tower were being sold from $650 to $700 per square foot. The company needed to presell 30 percent to 40 percent of the units before it began construction. Aiello didn't know how many pre-sales there were.

There are currently 1,787 condos and 1,339 rental units under construction in the Denver area, so the loss of 1401 Lawrence accounts for less than 5 percent of the 3,126 total units going forward, said John Desmond, of the Downtown Denver Partnerhip.

"I think this was an isolated issue," said Desmond, who heads urban planning for the partnership. "Downtown is extremely attractive for people, especially with rising gas prices, so I do not think we are in danger of overbuilding."

Rick Pederson, president of Foundation Properties, wondered why Gulf backed away from the project.

"Was it a macro issue? A problem specific to Denver? A problem with financing? I think people were a little surprised, because there was a presumption that Gulf was a very strong Toronto-based company," Pederson said. "But I don't think anyone was stunned. There are so many reasons for real estate not to work today, we just have to presume it was one of them."

Pederson does not think this will be a return to the 1980s, when many developers - a number of them Canadian - cancelled their Denver projects as the energy boom crashed.

"But certainly, we will have some more pullbacks this year," Pederson said. "I think we're only about halfway through the downturn in the housing market, nationally."

Lydia Lin, principal of One Realty, said a "perfect storm" of factors likely led to the demise of 1401 Lawrence.

Subprime crisis

"There was a negative perception about the state of the economy, especially the real estate market, and the psychology of it is was probably more damaging than the actual state of the market," Lin said. "Moreover, the subprime crisis caused credit issues. Also, in a market that was flat or falling, the developer went against the tide and started with an aggressive price point and even raised it."

Gulf unsuccessfully tried to persuade people to buy now, before prices rose more, by raising the asking prices by 5 percent.

Jeff Selby, co-developer of the Four Seasons under construction across from 1401, said he is not surprised the tower isn't going forward, because Gulf had not yet lined up its financing, which is extremely difficult since the subprime collapse last August. For example, developer Randy Nichols lost his initial financing for the Spire condo project, a couple of blocks from 1401 Lawrence, before he found a new lender.

"I do not think this is a sign of things to come, but a sign of things that already have happened" in the financial markets, Selby said.

Despite what some people think, 1401 Lawrence would not block views at the Four Seasons, he said.

And a number of people who planned to buy at 1401 already have contacted Four Seasons, he said, where about 50 percent of the units have been pre-sold.

Disappointed

"Obviously, I am disappointed," Selby said.

"The more high-quality projects we have downtown, the better it is."

Charlie Woolley, principal of the St. Charles Town Co., learned about Gulf pulling the plug on Monday and was shocked.

"My perception, in times like this, when there is paralysis in the market, most developers who have been through this before, if they think their vision is really strong, press on regardless," Woolley said.

Woolley said smaller projects that are easier to finance may be better than mega-towers.

"For future projects coming out of the ground, I think this is an opportunity for real estate developers to look at the little infill deals that can be financed locally," Woolley said.

[Dylan Leblanc]

Wow, reminds me of Spire in Toronto.

[NDPhilly]

i like the glass on this tower. it makes it look very thin and sleek

[SnyderBock]

One thing remains certain... They remain owners of this lot and this lot remains to be a very prime location in Denver. Something will get built here when the economy becomes more stable and this tower may be what gets built - if this project is brought back to life within the next 5 years. Perhaps a revised version of this tower, who knows? Time will tell!

[The Dirt]

You don't mean they as in Great Gulf. They sold it pretty quick to some unheard-of company pretty quickly. I'm positive that something will go up on this lot within the next 5 years and it probably will be residential. However, I don't think it may be quite as tall. Hopefully, we'll get a good looking design that doesn't look like any of the following toys:
legos
blocks
jenga

I think that it's about time Denver gets something a little more organic looking. Less right angles, and more round shapes. Look at all the architecture going up in Dubai. They don't have a single building going up that looks like a box.

[SnyderBock]

wow, I didn't know they sold it. I'm sure it will get a great development one day. It may not be as nice, but it might be nicer --who knows?

[The Dirt]

Here's a copy from Ken's blog:

The Colorado Real Estate Journal report that Great Gulf Colorado LLC sold their parcel on Block 070 at the corner of 14th and Lawrence for $8,425,000 to Renshan LP. The deal closed on May 29, 2008 and was recorded May 30, 2008. It was Friday, May 30 when Great Gulf publicly announced they were cancelling their proposed 51-story 1401 Lawrence project.

http://www.denverinfill.com/blog/2008/06/great-gulf-sells-14th-lawrence-parcel.html