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If your organization would like to take advantage of either of these
opportunities, please contact Bill James at bjames@jres.com or
303-316- 6768. This month one of our sponsors has provided some
commentary that you might find useful if you are planning any type of
real estate development.
Guest Commentary
Andy Kenney
Kenney Architects, P.C.
Merchants and small business owners have traditionally been the
backbone of neighborhood development. Today, the growth in these areas
can be attributed to retailers and developers both large and small.
Although the process can be tedious at times and the resources have
diminished throughout the years, the opportunity for incremental
development in these infill areas still exists today.
While many think of site selection as a natural starting point in the
development process, beginning with a plan and proforma is critical,
particularly for the smaller developer or retailer who may not have
intimate experience with the process. An increasing amount of money is
now spent early on in the development review process just to determine
if the City will consider a project. The developer's expenses may
include a variety of professional services fees, such as civil
engineering costs for drainage studies and conceptual designs by an
architect. Starting with a detailed proforma, in an effort to capture
some of the potentially "hidden" development costs, can help keep the
project a reality.
As you consider various sites, begin building your team. The group may
include an architect, contractor, engineers and a real estate
appraiser, as well additional consultants to advocate on your behalf
such as your attorney and accountant. Utilizing each team members'
knowledge, experience and relationships in the particular area where
you plan to build can greatly benefit the project's outcome.
Once you reach the site selection process, there are many
opportunities and challenges to take into account. The following are a
few of the important considerations that can ultimately influence your
decision making process:
Highest and best use
Your development should be driven by this philosophy in order to
maximize your capital and keep the development investment in
proportion to your land investment.
Lot size
Will the site allow for a suitable building footprint and does it
offer enough useable square footage for your first build and any
potential expansions?
Traffic/Parking
Carefully consider your parking requirements and the opportunity each
site offers. Is there adequate parking for the amount and type of
traffic you hope to drive? Will limited parking or traffic congestion
be a deterrent for customers? Consider other neighbors, including
places of worship with different/off-peak times, who may entertain a
shared parking arrangement.
Infrastructure
Investigate the existing utilities in the area. Will the existing
utilities work for you? Are there overhead or buried power lines?
Neighbors
Who owns or rents the space in the immediate vicinity? What are the
physical attributes and/or architectural styles of the neighboring
structures? Will your neighbors generate traffic to your development
or business? Are there complementary or competing businesses nearby?
Neighborhood/Merchant Association
Investigate the neighborhood or merchants association related to the
area. Will they provide support for your development or business and
see you as an attribute to the neighborhood?
City's plans for the neighborhood
Do some research to find our what the City has planned for growth and
development in the neighborhood. For example, will they be providing
incentives for developers due to the transit-oriented nature of the
area and proximity to the light rail station?
Code issues
Work with your architect to determine if there are any code issues
that may be applied to certain sites you are considering. Is the City
willing to look at a form base code that may allow for a more flexible
approach to massing requirements? Will you be required to adhere to
historical regulations in the area?
While in-fill lots and small neighborhood areas make charming settings
for retail and commercial development, there is an inherent challenge
in developing in these special areas. But, you can greatly increase
your chances for success if you can identify issues and costs early on
in the process and prepare your team for the often-lengthy, but
certainly educational process.
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As expected, the Tattered Cover Bookstore has announced that it will
be closing its Cherry Creek location in June upon the opening of its
new location at the Lowenstein Theater. The store had been a landmark
in the shopping area for 34 years and has occupied its current
location at East First Avenue and Milwaukee Street for nearly 20
years. A smaller location in the Cherry Creek area is currently being
pursued to serve as a satellite location.
Developers of the Pinnacle at City Park South condominium tower have
purchased the site for $7,000,000. With 103,000 SF or 2.4 acres and
238 units proposed, the sale is equivalent to $68/SF and $29,400/unit.
The developer has also decided to move up the beginning date of
construction for the second tower in the development following the
success of sales for the development. Located on the site of the
former Mercy Hospital at Fillmore Street and East 17th Avenue, the
tower is now to have 105 units instead of the original 122, and is to
have the majority of units priced from $415 to $430 per square foot.
Kick-off for pre-sales for the second tower are to begin in May.
The Denver city council on Monday awarded Kiewit Building Group a $126
million contract for redevelopment of the Gates Rubber plant. The
company will be responsible for removing contaminated materials from
the site as well as installing the necessary infrastructure for its
future development. The city council will meet on February 6th to
discuss a public financing plan for the project valued at $85 million.
The Denver City Council voted on Monday to approve a $126 million
financing plan for the 50-acre site of the Gates Rubber factory at
Broadway and I-25. The funding, $85 million provided by tax-increment
financing and $41 million through the creation of special taxing
districts established as part of the plan, will aid development of
roads, parks and other infrastructure necessary to the site, thus
facilitating the future development of 2,400 housing units and 1.8
million square feet of commercial space by Cherokee Denver.
The 29-unit Louisiana Lofts condo development is to be rebuilt by its
developer, Dallas-based Trammell Crow. The property, located at East
Louisiana Avenue and Buchtel Boulevard, was to be the first inner-city
housing project completed that would take advantage of the new
light-rail system when it was destroyed by fire last month. The new
estimated opening date for the project is December.
Paul Kashman, publisher of the Washington Park Profile has announced
the launch of the paper's new web site at www.washparkprofile.com.
"On-line readers will find much of the material included in our print
edition, as well as special features including: Links to elected
officials, government agencies, neighborhood groups, neighborhood
restaurants and other businesses and much more. The Washington Park
Profile on-line edition will also include additional photographic news
coverage and up-to-date news reports to supplement the regular monthly
print edition."
The conversion of the Foley's store at the Cherry Creek mall to Macy's
has begun with completion and a name changed likely by September. The
store will stay open as it is renovated along with the conversion of
11 other Foley's stores in Colorado and construction of the new store
at NorthField at Stapleton scheduled to open in October. The
NorthField center already has a BassPro store and an 18-screen Harkins
theatre complex will open in April. The Foley's changes result from
acquisition of May Co. by Federated Department Stores Inc. last year
after which May Company's Lord & Taylor store at Cherry Creek was
closed. That store is now slated for a late 2007 opening as a
Nordstrom store after likely expansion on to the parking lot along
East 1st Avenue. Taubman Company, owner of the center is negotiation
with the other anchor stores in the center and the City of Denver to
allow the Nordstrom expansion.
As expected, the Denver Urban Renewal Authority has selected Alliance
Development Partners to buy and redevelop the Dahlia Square shopping
center at East 33rd Avenue/Dahlia Street. Alliance is a partnership of
former Denver Mayor Wellington Webb and former head of the
SullivanHayes retail brokerage, Jim Sullivan who redeveloped the
former Catholic Archdiocese building in Cherry Creek North. The land
price is reported at $3.5 million or about $10.30/SF for the 340,000
SF site and the redevelopment plans include affordable, market rate
and senior rental housing. Oakwood Homes, best known for its Green
Valley Ranch development was selected by Alliance for much of the
residential development. Pat Hamill, head of Oakwood announced that he
plans to establish an inner-city infill development division with
Dahlia as its first project and that for sale townhomes at Dahlia
Square will hopefully be in the $150,000 to $160,000 range.
Peaberry Coffee has announced the closing of 11 of its stores in
Colorado but not the store in Cherry Creek North, nor the kiosks in
the Cherry Creek mall. The closed stores will be leased to Starbuck's
in a corporate restructuring that leaves 17 stores operated by
Peaberry. Among the stores to convert to Starbuck's are the ones on
Colorado Boulevard near Alameda and on University near Evans.
Lincoln Property Co. and ASB Capital Management paid $93 million, or
$165/SF, to TIAA-CREF for the Colorado Center, a mixed-use development
at the southeast corner of Colorado Boulevard/I-25. Comprised of
441,325 square feet of office space in two towers and a 121,133 square
foot retail component that features a Dave & Busters restaurant and a
United Artists Theatre, the project is located next to a T-REX
light-rail station that is scheduled to open this year.
Save the date! The Cherry Creek Rotary Club is planning a rare
Colorado performance by the Capitol Steps on Saturday, October 7 at
the Paramount Theatre. Capitol Steps is a troupe of current and former
Congressional staffers, who monitor events and personalities on
Capitol Hill, in the Oval Office and in other centers of power and
prestige around the world and then take a humorous look at serious
issues while providing a nationwide laugh for millions. It will be
timely entertainment for the upcoming mid term elections - a "don't
miss" event for all political persuasions. Proceeds will benefit the
Rotary Club and Project Pave at
www.projectpave .org. Project PAVE is a nonprofit organization
dedicated to empowering youth to end the cycle of relationship
violence. Information about sponsorships is available from Robin
Springer at respringer@gmail.com.
The Colorado Colfax Marathon is developing volunteers. Dubbed
"America's Main Street Marathon," the inaugural running of the event
will start at 6 a.m. on Sunday, May 21. The course begins on historic
Colfax Avenue in Aurora, passes the state Capitol in Denver and
finishes at the foot of the Rocky Mountains in Lakewood. To find out
more about volunteering, visit the marathon online at http://www.coloradocolfaxmarathon.com/volunteer.cf
m, or contact volunteer coordinator Lonnie Somers at Lonnie@coloradocolfaxmarathon.org.
The Colfax Marathon Partnership, Inc., is a Colorado nonprofit
corporation founded by the cities of Aurora, Denver and Lakewood. All
proceeds from the event go to Colorado Kids.
Redevelopment of Fillmore Plaza in Cherry Creek North continues to be
a topic of discussion among residential and commercial neighbors, the
adjacent property owners, the Cherry Creek North BID and the Cherry
Creek mall management with able coordination by Denver Council Member
Jeanne Robb. A Working Group and the Cherry Creek Steering Committee
continue to meet in an attempt to develop a design that will work best
for all. With some consultation with Denver Public Works officials,
the various parties appear to be approaching consensus that even a
narrow driveway is unlikely. One Board member from the Cherry Creek
North Neighborhood Association, Dan Dahlberg proposed an inexpensive
and flexible alternative of simply installing pavers with a consistent
pattern along Fillmore Street from the north edge of 2nd Avenue to the
south edge of 1st Avenue. The idea resonated some, but a clear final
plan has not been decided yet. The best idea this writer could come up
with is to reopen the Tattered Cover in a smaller store between
Wolfgang Puck's and Europtics on east side of the plaza. This might
require some rent concessions by the Sturm Group, but it would
certainly contribute to relocation of the pedestrian activity onto
Fillmore Plaza from Milwaukee Street to Fillmore Street, enliven the
Plaza and benefit the Tattered Cover building in the transition.
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