James Real Estate Services - Cherry Creek Perspective

University of Denver - Daniels College of Business

2010 Rocky mountain Commercial Real Estate Expo

September 2010

The historic 110,000 SF Hangar 2 building along East Academy Boulevard has been purchased by Hangar 2 Partners LLC from Wings Over the Rockies Air & Space Museum for $3 million or $27/SF. Part of the former Lowry Air Force Base, the 1930s property is to be resurrected as a solar-powered mixed-use development. Phase I will open in the spring of 2011 and will include a 500 unit self-storage, a 4,600 SF dog day care facility, with retail and office space. Phase II will be 12 restaurants to be named the Lowry Dining District.

The Cherry Creek North Neighborhood Association and the Cherry Creek North Business Improvement District appear to be closer to agreement about the design for the renovation of Fillmore Plaza. The CCNNA Board reported to its members that if a street was going to be approved through Fillmore Plaza by City Council, then preserving as much of the Plaza for the neighborhood and all pedestrians would be the appropriate course of action. On August 26th the BID presented a new FP design to, CCNNA Board members, Council Member Jeanne Robb and others with:

a uniform flat surface at the north end without any curbs or parking
a comprehensive colored paver / brick surface décor throughout the entire plaza
an enhanced pedestrian orientation with expanded sidewalk areas and seating
removable bollards or posts that separate the street from pedestrian space
different size planters for trees and other landscaping

The only CCNNA request on which the BID reportedly did not agree was the number of parking spaces on the south end of the plaza - 8 vs 10 spaces near 1^st Avenue.

Another important undecided issue is whether a street vacation or an Inter-Governmental Agreement (IGA) would be used to open the street through Fillmore Plaza. A street vacation transfers title of a street from the city to adjacent property owners at no cost. In this case the apparent intention is for the private property owners to then transfer title of the plaza to the BID at no cost. The plaza would then become the public property of the BID. An IGA would keep the street as a city right-of-way with an agreement between the BID and the City for the maintenance, management, and fees associated with the street and plaza events. More at:

http://ccnneighbors.com/issues.htm

http://cherrycreeknorth.com/about/fillmore-plaza-hybrid-design/

The CCNNA will hold its next meeting this Tuesday September 28^th 7:00 PM at the Daniels Fund Building, 101 Monroe Street. A discussion of Fillmore Plaza is on the agenda. Park in the lot on the west side of the building. The gate will open for you.

The Denver Business Journal reports that Koelbel and Co. and Mile High Development LLC plan to start construction on the 50-unit Apartments at Yale Station on Sept. 30. The senior-housing property is located at 5307 East Yale Avenue in Denver, near the Yale Station light rail stop, and will include 3,000 square feet of ground-level retail space. Last year, the project was one of five planned metro-area developments to receive a total of $4.43 million in low-income housing tax credits from the Colorado Housing and Finance Authority (CHFA). Other funding is coming from private and public sources. Mile High Development is headed by veteran Denver-area developer George Thorn, and Koelbel and Co. is led by the father-and-son team of Walter and Buzz Koelbel.

The DBJ also reports that the 100-unit, $24.8 million South Lincoln Apartments at 1099 Osage Street in Denver are also slated to break ground on Sept. 27. The property is being developed by the Denver Housing Authority, as part of its $250 million redevelopment of the South Lincoln Park Homes. Partial funding for the new apartments comes from a $10 million grant from the federal stimulus program (the American Recovery and Reinvestment Act).

The sustainable project will include geothermal and solar energy systems, and aim for achieving LEED Platinum status, according to the DHA. LEED stands for Leadership in Energy and Environmental Design, and is the U.S. Green Building Council's rating for energy-efficient building design. More at:

Article Link

Denver City Council Member Jeanne Robb reports that the resurfacing project on Colorado Boulevard between Alameda Avenue and Martin Luther King Jr. Boulevard is well underway with crews now conducting median repairs and replacement. As a result of this work, northbound and southbound Colorado Boulevard has been placed in a temporary alignment with each lane reduced to 10 feet.

"To complete the median work, we needed to reduce the lanes to provide a three-foot buffer on each side of the median," said CDOT Project Engineer Kurt Kionka. "This will provide a safe work zone for our workers as well as the traveling public. This is only a temporary configuration until the median work is complete."

The median work is expected to be complete in September and will be followed by rotomilling and asphalt paving. In all, the project will rotomill and pave 3.5 miles of Colorado Boulevard in asphalt; reconstruct the median and curb ramps; upgrade three traffic signals at 17^th Avenue, Colfax Avenue and Montview Boulevard and improve turn lanes at those intersections.

Robb also reports that the former Safeway building on the future recreation center site at 16^th and Josephine has been demolished. The City purchased the site last year with Better Denver Bond fund. The bond issue included $11 million for site purchase and planning but did not include dollars for future construction. The city has been continuing to discuss future site plans to make the most of this opportunity for partnership with Denver Public Schools and development interests.

In the meantime and since the site should be fenced, the Department of Parks and Recreation with the input of community stakeholders has created an interim site plan which will include a interim dog park (approximately 1 acre) and a community garden. The interim dog park will be open to the public in mid-October. East High has expressed interest in students helping with the community garden and they hope to have raised beds built by next spring.

Life on Capitol Hill reports that Shea Properties is renegotiating its purchase agreement with the University of Colorado for acquisition of the former University of Colorado Health Sciences Center at East 8^th Avenue/Colorado Boulevard. The developer wants to purchase smaller segments of the property as tenants materialize for the end-product. While development is slow in East Denver, near the Capitol much construction is underway. The History Colorado Center is under construction on East 12^th Avenue between Broadway and Lincoln with 198,000 SF and projected to cost $11 million. And the Ralph L. Carr Justice Complex is under construction by the State of Colorado on the north end of that block. With 150,000 SF of Supreme Court and Appeals Court space, and 450,000 SF of offices the complex will cost $259 million. The City of Denver Justice Center complex was recently finished replacing the Rocky Mountain News building in the 400-600 blocks of West Colfax Avenue. Since 2007 construction has included a 637 space parking structure/post office/retail building, the 599-bed Van Cise-Simonet Detention Center and the 35-courtroom 315,000 SF Lindsey-Flanagan Courthouse. And the Clyfford Still Museum at the southeast corner of West 13^th Avenue/Bannock Street has started construction. The 28,500 SF building will cost $29 million. Further east the McDonalds restaurant at Colfax/Pennsylvania is being replaced with a new 46,000 SF building with pedestrian friendly design compelled by Denver's new Main Street Zoning. And the 7-Eleven at Colfax/Josephine is being replaced by one across the street at the NWC Colfax/Josephine.

The City of Denver plans to build a pedestrian and bicycle bridge across I-25 just east of Colorado Boulevard. The $8 million cost of the bridge will come from Denver City Capital Improvement funds ($4 million) and the balance from Federal Transportation Improvement Program funds. Completion is planned for early 2012. The bridge will connect the Colorado Center office/movie/retail transportation oriented development with office buildings and residences on the north side of -25. Habitat for Humanity's Bails Townhome Community is nearing completion nearby at East Bails Place/South Bellaire Street. The design of the bridge is in process. More at:

Article Link

Denver Council Members Peggy Lehman and Jeanne Robb announced that the Mile High Million has teamed up with Veterans Green Jobs to plant trees in neighborhoods across Denver. Trees planted on the west side of a home can reduce summer energy bills by as much as 24% by shading the home. Several southeast Denver neighborhoods are scheduled to be planted this autumn. If your home faces west, you may be eligible for a free tree. More at:

million.trees@denvergov.org

http://www.milehighmillion.org/pages/section/programs/trees-for-energy-savings

The Cherry Creek North Neighborhood Association reports that a study group of interested Cherry Creek area residential and business representatives, Denver City Council, and local theater leaders convened to discuss the development of live theater as a way to bring added life and vitality to the Cherry Creek area. With community support, the Cherry Creek Theatre Company was established. The Theatre's mission is to enhance and enrich the vitality of Cherry Creek through theater and the arts by producing theatrical and artistic productions.

The short term goal is to bring live theater to Cherry Creek and the surrounding neighborhoods. The long term goal is to partner with the Cherry Creek Arts Festival or a similar neighborhood arts-oriented organization to establish a permanent Cherry Creek area theatre presence. In February, Love Letters will be presented in the Shaver-Ramsey Gallery in Cherry Creek North. Watch for the cherrycreektheatre.org website which will be available soon.

According to the Denver Post, The National Trust for Historic Preservation is planning a $2.3 million renovation of the former Emerson School, where it plans to relocate next year. Now known as the Frank B. McGlone Center, the building at 1420 Ogden Street was donated to the preservation group by Capitol Hill Senior Resources Inc., which purchased the building in the 1980s to house several nonprofit groups. Built in 1885, Emerson is the oldest remaining elementary school building in Denver. The two-story red brick building was designed by Robert Roeschlaub, who is widely recognized as Colorado's first master architect. Emerson was the first Denver school to incorporate space for an in-house library and had the first PTA in the Denver district, as well as the first student council. Historic Denver and Colorado Preservation Inc. also will occupy the building. The National Trust has received a $500,000 grant from the State Historical Fund to help with renovations. More at:

http://www.denverpost.com/search/ci_16001128

The Denver Post also reports development of a 95,000-square- foot medical office building on the southern edge of the Uptown hospital district on the block bounded by Park Avenue, East 17^th Avenue and Lafayette Street. A major Denver medical practice has agreed to lease 25 percent of the building, said Glen Sibley, president of Denver-based Fleisher Smyth Brokaw, which is developing the project. He declined to disclose the practice because employees had not been notified. Designed by Denver architects Mulhern Group, the building will have floor plates of up to 25,000 SF on floors 5 through 8 and will be able to accommodate an ambulatory surgery center, imaging services and a variety of other medical services. Retail and restaurant space is planned for the ground floor. Structured parking for more than 300 cars is planned for the project. Groundbreaking for the project is slated for the middle of next year. It is expected to take a year to complete. More at:

http://www.denverpost.com/search/ci_15944574

The new HealthOne Rocky Mountain Hospital for Children has opened at East 19^th Avenue/Franklin Street with 160,000 SF in the hospital and 70,000 SF in an adjacent medical office building.

The Cherry Creek Steering Committee reports that Cherry Creek Arts Festival had another successful year with some $2.4 million in artist sales. 104 out of 230 total artists were new to the festival this year. The CC Arts Festival is consistently listed as one of the top 3 arts festivals in the U.S. Over 350,000 patrons come to CCAF each year to see the Visual Artists, 22 Culinary Artists, 17 Demonstration Chefs, 26 Performing Artists, 13 Cultural Pavilion Presenters and 7 Fitness Instructors. More at:

http://www.cherryarts.org/

In the Cherry Creek Area Plan Cherry Creek North has been reclassified by Denver Planning and Community Development from an "area of change" to an "area of stability." The Alameda triangle is still classified as an "area of change."

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90 Madison Street, Suite 300

Denver, CO 80206

Direct/Cell: 303-316-6768

Email: bjames@jres.com

Sponsorship of Real Estate Perspective and Cherry Creek Perspective by the Colorado Chapter of the Appraisal Institute does not constitute endorsement of James Real Estate Services, Inc. by the Chapter.