General News
| November 28, 2008 - Denver LoDo Development, Denver CO | |
| Developers of buildings under construction in Denver’s LoDo neighborhood are in a great position for two main reasons — they have financing during the global credit crunch and they’re building in one of the city’s most desirable areas. |  |
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Denver Four Seasons Above |
Developers of buildings under construction and nearly finished in downtown Denver’s LoDo neighborhood are in that position for two main reasons — they have financing during the global credit crunch and they’re building in one of the city’s most desirable areas. They also have locked in most materials costs — steel, concrete, etc. — in an erratic commodities market, and are enjoying lower fuel costs, knowing they could increase at any time. “The challenge today, if you’re a developer, is starting a project with the capital markets the way they are,” said Jeff Selby, partner at 1111 Tower LLC, developer of downtown’s Four Seasons Hotel & Private Residences. “But in this economy, Denver has avoided what happened in the worst of the S&L period here. We’re pretty balanced.” Both residential and commercial developers with projects in the LoDo vicinity are able to proceed because of market demand that continues despite today’s economic downturn. Because that demand also calls for environmentally friendly buildings, many of the projects plan to be LEED-certified. “Every crane in downtown represents a project that’s fully financed,” said Brian Phetteplace, manager of residential and retail development at the Downtown Denver Partnership Inc. “When it comes to specific locations, development in LoDo is attributable to existing space being at such a premium.” One of the first new LoDo-area projects to finish is the recently completed 1400 Wewatta building, developed by Opus Northwest LLC with Crestone Partners LLC of Denver and GE Asset Management. In September, the building welcomed one of its anchor tenants, Chipotle Mexican Grill Inc., which relocated its corporate headquarters from 1543 Wazee St. Among residential projects, the Four Seasons reached its 21st floor as of Thanksgiving week and the nearby Spire condo project started work on its 38th floor. Four Seasons condo purchasers will be able to start choosing a design theme for their units in December, according to marketing/sales director Kelly Carbajal. Spire developer The Nichols Partnership Inc. of Denver plans to start formal marketing of its units in the first quarter of 2009, with the opening of an 8,000-square-foot sales center at the nearby Colorado Convention Center, said Chris Crosby, Nichols Partnership executive vice president. Updates of specific projects, as of the week of Nov. 24, include:
This contemporary mixed-use, beige and red brick building, with 200,000 square feet of office space and 10,000 square feet of ground floor retail space, has completed exterior construction and now is doing tenant finish, according to Opus. A companion building — the 10-story 1401 Wynkoop, with 100,000 square feet of office space and three levels of residences — is planned. Both buildings are to be LEED-certified.
A blend of old and new, this office building features the red brick exterior popular in many surrounding old buildings and is pre-certifed LEED Silver. Exterior exterior construction started in April 2007 and is well along, having reached maximum height, but isn’t finished. Completion initially was targeted for fall 2008, but in August, Hines adjusted the date to February 2009, with occupancy expected soon after. Signed tenants include Van Gilder Insurance Corp. of Denver, with 57,000 square feet of office space, and the Fogo de Chão Churrascaria Brazilian restaurant, with 12,610 square feet. The Samuel Gary Jr. & Associates Inc. energy company of Denver also has leased space in the building.
This $100 million glass and precast concrete office building with retail space, located near light rail and Gates Corp.’s world headquarters, has nearly reached its full height, with the last few floors under construction. Most floors plus an adjacent parking garage are fully enclosed, and the entire building is expected to be enclosed by the end of January 2009, according to leasing broker Chris Phenicie, senior vice president at CB Richard Ellis Inc. Interest in the building is strong among prospective tenants trying to “reinvigorate their images,” Phenicie said. “They want to be where the entertainment is, where the mass transit is; they want to be where it’s hip.” The project, which broke ground in 2007, is expected to be largely finished around June 2009 and ready for tenants next fall. Asking office rents are $27 to $28 triple net, or without expenses such as insurance and taxes. Project is pre-certified LEED Gold. Infrastructure for a second, shorter office building already is in place, so it can start construction quickly.
1900 Sixteenth
Exterior construction is nearly finished on this contemporary, beige-brick and glass mixed-use building, and tenants are expected to start moving in in December and early 2009. The developer initially hoped the building would be ready for occupancy in mid-2008. Building is 75 percent leased by tenants such as local H+L Architecture Ltd. (39,000 square feet), Cambridge, Mass.-based EF Educational Tours (34,659 square feet) and an undisclosed bank (4,000 square feet).
This $350 million luxury hotel and condo project is starting work on one floor per week. Project broke ground in September 2007, and is scheduled to be completed in 2010. Half the condos, which start on the 18th floor, have been presold, and Four Seasons local operations staff is expected to be in place in May or June 2009, Carbajal said.
The developer expects to start marketing units at the $175 million condo project in the first quarter of 2009, and for the building to be finished late next year. Asking prices start in the low $200,000s, with 60 percent of units priced at less than $400,000. Marketing for first-floor retail space is under way. The developer already is making use of bottom floors, with huge banner advertisements for companies such as local Hyde Park Jewelers, Visa credit card and Budweiser American Ale. Proceeds from the ads go to the Denver Theater District, Crosby said.
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