Multiple Sites Finishing Up But Only A Couple Commencing; Stunning Newly Built Structures Opening In The District For Fall
by Glen Richardson
The pandemic and a weakening economy find Cherry Creek’s construction sites still turning shovels and swinging hammers, but the pace has slowed and few new projects are expected to sprout up. Following eight straight years of new construction, owners, developers, contractors, subcontractors and the supply chain are feeling the shock.
Normally it’s rare for district developers-builders to slow down construction activity. But these aren’t normal times, and the pandemic economy has given rise to a noticeable work cutback. The structure of demand is changing: Fewer hotels are being proposed due to less business-leisure travel. Online shopping is shrinking the demand for retail space and the need for offices is slowing because of remote working.
Multiple projects are finishing up in Cherry Creek plus a couple have commenced construction. Residents and district shoppers can expect those projects to be completed. It is new projects that have been proposed in the district that are likely to see terminations of parties or entire projects. Given the hotel outlook, the AC Marriott in Cherry Creek is likely to be delayed or the site could go up for resale. The Sunridge Hotel Group project is proposed for seven-stories, 150-rooms.
Westside Wait
Redevelopment of Cherry Creek’s west end has been the slowest to take off. Completion of the 260 North office-retail project at Josephine St. and East 3rd Ave. and makeover of the former Inn at Cherry Creek opening as The Clayton at 233 Clayton St. in March of 2021 are notable exceptions.
Broe Real Estate Group which owns the bulk of the east side of Clayton St. announced a year ago it would demolish several structures to make way for two new office buildings. Existing two-story structures at 200 and 210 Clayton are to be replaced with an eight-story office building with ground-floor retail. The adjacent four-story building it owns at 216 Clayton would remain but the two-story parking garage to the north would be replaced with a seven-story office building and ground-floor retail. Broe’s headquarters is at 252 Clayton and the firm has deep pockets. Thus the massive project will likely come to fruition but demolition isn’t expected to begin until next year with completion two-five years away.
The promised Clayton Lane Investors redevelopment of the west end of Cherry Creek between 1st and 2nd Ave. from Josephine to Detroit St. is in limbo again. The Invesco Real Estate-Broomfield partnership project isn’t likely to break ground in the next 12-14 month. Completion that would include demolishing the former Sears store that has been vacant since 2015 isn’t likely in the next several years. Should the venture be terminated look for the Nichols Partnership — Clayton Lane’s original developer — who just bought back a portion of the Whole Foods Garage for $6 million — to take over the project.
New For Fall
Newly completed projects scattered through the fashionable neighborhood are beginning to open for fall. The project known as 260 North has finally opened, creating the west end’s first high-end, mixed-use space. Situated adjacent to the BMC built MOXY and Halcyon Hotels — the only other new westside structures — it is a compelling building with a stepped-up design. Located on the corner of 3rd and Josephine streets, it adds office, retail and parking space while allowing daylight into the streetscape.
On the east end, the just completed modernistic 88,000-sq.-ft. UC Health Cherry Creek has opened. With an all-glass façade, it stands out alone on East 1st Ave. as most of the surrounding buildings are heavy with earth tones and masonry. The health center offers primary care, state of the art imaging, a surgery center and comprehensive oncology treatment.
Over in the Cherry Creek Triangle, two major multi-family projects are also open. Between the step down, brickwork and landscaping, Gables Cherry Creek II helps reduce the harshness of East Alameda Ave. Gables Vista, rising 12-stories, is one of the tallest in the triangle. All together the three Gables projects have added 579 homes in the district.
On The Rise
Two projects, both BMC developments, are currently under construction in the district. Newest is the 240 Saint Paul project to be anchored across the first three floors by the Equinox Fitness Club. Most of the office space is pre-leased and at last report half of the 12,000-sq.-ft. of retail space had been rented. Construction is anticipated to take at least 14 months, with completion in summer-early fall of next year.
Renamed The Clayton, Matt Joblon signed a 99-year ground lease on the 233 Clayton St. property in the fall of 2017. Since renovation started a year ago, BMC is spending $30 million to add onto the property that’s expected to open next March.
What will make the project unique in Cherry Creek is Joblon’s goal to create a “real culture center.” In addition to 37 hotel rooms, the six-story building will feature 12,000-sq.-ft. of “hip retail” on the ground-floor plus scores of music, culinary and art venues for entertainment, exploration and enjoyment.
Projects On Horizon
Despite the district’s construction slowdown, there are several new projects on the horizon in Cherry Creek. They range from office buildings to apartment complexes, two potential hotels plus an independent living community for seniors.
Most likely to begin construction is the 2nd Ave. & Adams project where a two-story office building and a single-family home have already been cleared. Purchased by Blair Richardson, the 0.29-acre site would feature an all-glass building with ground floor retail plus four levels of office space. When it is developed it will extend the existing stretch of retail on East 2nd Ave. further east.
Due to the project’s nature, a proposed seven-story, 136-unit senior living project could also break ground next year. Named Solterra Senior Living, the site is near the intersection of Alameda Ave. and Colorado Blvd. A self-service car wash was recently demolished at the site to make way for the project. The infill site at 235 Fillmore that has set vacant for several years has been purchased by BMC, making development more likely. An office building with ground-floor retail is proposed.
