DENVER | Main Development Thread #7

[Denver Dweller]

http://www.denverpost.com/2017/08/08...nment-complex/

[jbssfelix]

Originally Posted by Denver Dweller

http://www.denverpost.com/2017/08/08...nment-complex/

Exciting to hear. I just hope Lincoln is able to stick with the designs that Gensler (architect) put forth in the original plans. I've always been impressed with Gensler's projects (Westin DIA, Alexander Indy, Third+Shoal Austin, etc) and would love to see more of their work here.

[Alchemist]

[QUOTE=yaklof;7887135]According to the buyers website they received approval in 2017 from the US citizenship and immigration service for the foreign capital that is being used for this project. The "roughly 156 million" number on the site seems a bit off though for such a tower. So don't know how realistic this thing really is...

How is your Korean?



Taken from here.
http://www.gohana.co.kr/product/inde...=12&p_uid=5831

This must be fairly recent since it lists Tryba Architects' involvement with the Crawford Hotel.

[semiurban]

Glass going up on 16 Chestnut. They call that color palate: "Death Star"

https://app.oxblue.com/open/saunders/16

[Mountain man]

Originally Posted by semiurban

Glass going up on 16 Chestnut. They call that color palate: "Death Star"

https://app.oxblue.com/open/saunders/16

Watching that time lapse I really enjoyed watching 1144 15th rise in the video! But how did all of that huge building rise so quickly while 16 chestnut barely made a dent in the same amount of time?

[jbssfelix]

[QUOTE=Alchemist;7888461]

Originally Posted by yaklof

According to the buyers website they received approval in 2017 from the US citizenship and immigration service for the foreign capital that is being used for this project. The "roughly 156 million" number on the site seems a bit off though for such a tower. So don't know how realistic this thing really is...

How is your Korean?



Taken from here.
http://www.gohana.co.kr/product/inde...=12&p_uid=5831

This must be fairly recent since it lists Tryba Architects' involvement with the Crawford Hotel.

Top-left: View after completion of MP Tower
Center: 58 Generations (*not translating well)

From various parts of site:
50-story apartment building
1st floor retail
Floors 2-7 = Parking
Construction period: early 2016-EOY 2017

[TakeFive]

Originally Posted by semiurban

Glass going up on 16 Chestnut. They call that color palate: "Death Star"

https://app.oxblue.com/open/saunders/16

Ewww, I assume Davita didn't solicit that?
Head Quarters for one of the largest kidney care companies; just look for the Death Star building

Originally Posted by jbssfelix

Construction period: early 2016-EOY 2017

Dang, I totally missed that one.

[comoneymaker]

Originally Posted by Denver Dweller

http://www.denverpost.com/2017/08/08...nment-complex/

Noooopppeee. Not going to happen. They don't own the land and it will cost them nearly their entire budget to buy that land. They are so F'ing stupid. The land where the hotel is will nearly cost them $50 million alone. The city council members of Glendale are some of the stupidest people you will ever meet.

[Robert.hampton]

[QUOTE=jbssfelix;7888516]

Originally Posted by Alchemist

Top-left: View after completion of MP Tower
Center: 58 Generations (*not translating well)

From various parts of site:
50-story apartment building
1st floor retail
Floors 2-7 = Parking
Construction period: early 2016-EOY 2017

Interesting that they say they will be using a lot of low income/affordable housing grants to finance the construction.

[TakeFive]

Credit Kurt Sevits/7News Denver

http://www.thedenverchannel.com/news...-redevelopment

DENVER – The Denver Housing Authority on Friday celebrated the completion of a $197 million residential redevelopment project in the Lincoln Park neighborhood. The Mariposa District, a new mixed-use, mixed-income development at 10th and Osage streets, replaced the aging South Lincoln Homes, which were built in the 1950s.

Construction of the development took place in eight phases and created nearly 600 new residential units, with a mix of market-rate and affordable homes

Nexp up is redeveloping Sun Valley

Props to Aurora - Highest rating ever achieved by a Colorado hospital. Moving up five spots from last year, now rated 15th best in the country, UC Health now comes in 5 spots ahead of Mayo Clinic in Phoenix.

[wong21fr]

Originally Posted by TakeFive

Props to Aurora - Highest rating ever achieved by a Colorado hospital. Moving up five spots from last year, now rated 15th best in the country, UC Health now comes in 5 spots ahead of Mayo Clinic in Phoenix.

I'd say this is despite being in Aurora. It's a monumental hurdle to have had to overcome.

[DenverInfill]

Originally Posted by TakeFive

Props to Aurora

Instead of "props to Aurora" how about "props to the University of Colorado"!!?

[Octavian]

Originally Posted by wong21fr

I'd say this is despite being in Aurora. It's a monumental hurdle to have had to overcome.

They needed space to expand. This wouldn't have happened if they stayed on Colorado blvd. Aurora basically gave them the land for free.

[DenverInfill]

Originally Posted by Octavian

They needed space to expand. This wouldn't have happened if they stayed on Colorado blvd. Aurora basically gave them the land for free.

Not Aurora, but the feds. CU received their Fitzsimons campus acreage for free from the federal government through a Public Benefit Conveyance as part of the Base Realignment and Closure (BRAC) process. The fact that it was in Aurora was irrelevant. The same process would have occurred if Fitzsimons had been in Denver, which is less than a mile away.

[Denver Dweller]

http://www.denverpost.com/2017/08/09...ry-units-down/

[TakeFive]

Originally Posted by DenverInfill

Not Aurora, but the feds. CU received their Fitzsimons campus acreage for free from the federal government through a Public Benefit Conveyance as part of the Base Realignment and Closure (BRAC) process. The fact that it was in Aurora was irrelevant. The same process would have occurred if Fitzsimons had been in Denver, which is less than a mile away.

Man, you'e stingy tonight.

True about how the land was acquired but Fitz had long deep roots in Aurora and brought significant economic benefits. Additionally Aurora has been very cooperative and supportive.

Originally Posted by Denver Dweller

http://www.denverpost.com/2017/08/09...ry-units-down/

Interesting but let's take a closer look.

Ken recently posted his bi-annual residential analysis within a 1.5 mile radius of the D&F tower which means a lot of units are missed which fall outside of that boundary. Never-the-less the numbers are fascinating.

Downtown Residential June 2017
There were 10,195 units completed since January of 2010 in 67 projects. That would be... hold on a minute... OK, my mechanical calculator says that's seven and a half years. Ofc things started out modestly and have picked up steam ever since. Right here, right now, there are 7,896 units in 37 projects under construction. No doubt that's a lot.

When the Denver Post refers to lenders they're (presumably) speaking about traditional/bank sources. But as we've seen with the many national or institutional developers in downtown they often use non-traditional non-bank sources of construction funding.

[TakeFive]

Originally Posted by Denver Dweller

http://www.denverpost.com/2017/08/09...ry-units-down/

Part Two
Table of Experts: Commercial Real Estate
Jul 14, 2017 - Denver Business Journal panel of experts

With respect to condos:

Jay Philp: We’re seeing that start, condo-development beginning well below that luxury level, which is nice. It’s being introduced in smaller doses and low-basis areas. We’re definitely seeing people test the waters. My suspicion is that before we see a lot more of that, we’re going to have to see insurance rates start to drop.

Is the multifamily sector in danger of being overdeveloped in Denver?

Allison: This has been a continued topic of discussion for the past four years. Properties are still being delivered and the product continues to be absorbed. That being said, concessions are being seen in the market and vacancies have been creeping up, especially downtown.

I do think that while things will soften, there won’t be any significant harm to the multifamily market. There’s so much in-migration and strong foundations in that regard, the units continue to be absorbed.

If you like your demographic stats:

Pete: We’re trying to look at what kind of city Denver is going to be, and one of the stats CBRE looks at is number of jobs per apartment built. Over the past 16 years, we’ve seen that ratio drop. Denver was up to about 16.4 jobs per apartment downtown if you go back 15, 16 years ago. We’re now down to about 5.7 jobs per apartment. We feel like a good, healthy number is going to be around five jobs per apartment.

...If the job market stays as healthy as it is, and you continue to see relocations of companies with very high-paying jobs coming to Denver, we’ll be fine.

What about interest from equity investors?

Pete: Additional foreign capital sources is what’s been most exciting, as it sort of legitimizes you as a city when you start to get the rest of the world investing. We had Bahrain and Sweden last year, which we hadn’t seen before. Germany is hot. South Koreans are buyers. It’s a very diversified pool. It really brings us not quite to the coastal levels yet, but darn close. They don’t maybe have as high an allocation for a city like Denver, but they like the diversified nature, the in-migration, the millennials, the workforce, low unemployment. The fundamentals look great for us.

There's discussion about other commercial segments as well.

[TakeFive]

Originally Posted by Denver Dweller

http://www.denverpost.com/2017/08/09...ry-units-down/

Part Three
I don't doubt that Denver is riding the crest and the article suggests slowing starting a year from now. In new construction starts this ofc is logical. But they hyper-focus on affordability or lack thereof for all the high-end apartment downtown. What they're missing is that earlier projects have likely already recouped most of their investment and don't need the high rents they're still getting. There's plenty of room for more affordability to creep into the market without damage.

While there has been an uptick in suburban projects it's so scattered it's hard to see any over-supply there either.

Cost of construction is the biggest thorn so some slow-down could be beneficial.

Notice: There will be No Part Four.

[trubador]

Originally Posted by TakeFive

Props to Aurora - Highest rating ever achieved by a Colorado hospital. Moving up five spots from last year, now rated 15th best in the country, UC Health now comes in 5 spots ahead of Mayo Clinic in Phoenix.

Children's is frequently ranked in the top 10 nationally. They split pediatric hospital from general hospitals in national rankings. Now when you get into specialties and sub specialties National Jewish is the best pulmonology hospital in the united states and has achieved a #1 or #2 ranking for nearly two decades. Craig hospital is the #7 rehab hospital and has ranked in the top ten for nearly three decades. No matter what way you look at it, health care in Colorado is improving and when the new VA hospital goes online, it will only improve the perception.

[mhays]

Originally Posted by Denver Dweller

http://www.denverpost.com/2017/08/09...ry-units-down/

Denver seems like Seattle in this regard. I went to an apartment forecast breakfast in 2011 where the consensus was that projects should start in 2011, but if they started in 2012 they might miss the market. Since then, people have continued to project the end of the boom (some people) while others continue to be optimistic. The optimists keep building, aided by offshore money in many cases. This sounds like Denver too.

There's a lot of talk about paradigm shifts where it's not just jobs/housing, but also a societal shift where more people of any demographic want to live in the core than previously, so demand is more constant.