Apartment Buildup Wave Ripples Through District Also Facing Surge In New Office Buildings
by Glen Richardson
Cherry Creek North — long notable for ritzy shops, fancy restaurants, and posh homes — is about to feel the impact of a tidal wave of new apartment construction. The tsunami of new construction apparently triggered by Broe Real Estate Group’s announcement it plans to replace a 10-story office building at 50 S. Steele St. with a 12-story, 416-unit apartment building, groundbreaking to begin in early 2024.
High Tide On 1st Ave.: Broe Real Estate Group plans to replace its 10-story office building at 50 S. Steele St. with this humongous 12-story high-rise with 416 apartments.
The district, of course, had its first ominous hint of a powerful forward apartment construction wave when East West Partners announced it would build 600 apartment units in the largely vacant west end of the Cherry Creek Shopping Center. Near the Cherry Creek waterway shore, work at that site is also set to begin in early next year.
Adding to the ground swell of new apartments is BMC Investments plan to build a 12-story, 250-unit apartment building on the southeast corner of East. 1st Ave. and Steele St. (High Rise Apartments Going Up at Sears Store Site, Chronicle June).
Splattering Effect
Set to splash into Cherry Creek before or following the new year and ride the wave of new apartment projects to historic high-rise highs, are these earth-movement projects:
Zocalo Development is planning to build a 12-story, 185-unit apartment complex on the northeast corner of 1st Ave. and Steele St., their first project in Cherry Creek.
Stillwater Capital, a private national real estate firm, is planning an 85-unit apartment project that will replace several buildings in Cherry Creek North, at 255 N. Detroit. The tallest part of the building will be eight-stories, with step-downs to seven and five stories.
Formally an office proposal, Blair Richardson — CEO of Denver-based Bow River Capital — is now planning a five-story, 22 apartment-condo building at the vacant lot on the southwest corner of 2nd Ave. & Adams St., adjacent to the Cherry Creek Grill.
Broe Group’s Geyser
Building Boxes Rising: East West Partners plans 600 apartment units in the largely vacant west end of the Cherry Creek Shopping Center, near the Cherry Creek waterway.
The 416 apartment Broe development will have a humongous 611 parking spaces, plus ground-floor retail, and rooftop amenities. In 2021 when the site was rezoned for a 12-story structure, Cherry Creek East groups raised concerns about parking, traffic, and how a new building would block views.
Councilman Chris Hinds, who represents the district, also expressed concerns about the rezoning, particularly the impact it might have on older residents living at Kavod Senior Life around the block. But, nonetheless, he voted for the rezoning.
Broe has owned the 1970s-era, 115,325- square-foot building at 50 S. Steele St. since 1989. Elsewhere in Cherry Creek, Broe has two office developments underway at 200 and 250 Clayton St. The 200 Clayton site is in the final stages of completion. Broe plans to break ground at the 250 Clayton late this year.
Deluge At 1st & Steele
Zocalo’s new apartment building will be located on the northeast corner of 1st Ave. and Steele St., across the street from the 88
Splash On Steele St.: Zocalo plans this 12-story, 185-unit apartment complex on the northeast corner of 1st Ave. and Steele St., across from the 88 Steele Creek development.
Steele Creek development. Currently the site is just a dirt lot with some torn up pavement.
The 12-story LEED-Gold building will include their “Velo” bike room, a rooftop deck, fitness room, and ground floor retail.
Rezoning in April created a slight uproar concerning over-development and traffic congestion issues. Zocalo countered by offering $80,000 for bike and car sharing programs plus congestion relief measures.
Trio Slip Into Creek
BMC’s 12-story, 250-unit Steele Creek complex replacing the deserted Sears store, will be split, half one-bedroom, the other half divided between studio and two-bedroom units. Amenities will include a fitness center, rooftop deck, and landscaped courtyards.
Stillwater Capital’s 85-unit project on North Detroit will be eight-stories, stepped-down to seven and five-stories. Directly north of the eight-story Financial House, it will replace numerous retail sites including women’s store Garbarini.
The empty lot at 2nd Ave. & Adams St., originally planned as an office building, is being nixed in favor of a five-story, 22-unit apartment-condo project. Purchased by Bow River Capital’s CEO in July 2019, the site was bulldozed and has sat vaca
The Road Ahead: Cherry Creek West is changing Cherry Creek North Drive to be all at grade. A wide pedestrian crossing will allow walkers and bikers to cross freely.
nt for three years.
Housing Turbulence
In the past, apartments in metro Denver were simply four walls and a roof overhead, with few amenities. Renters viewed them as temporary shelter while they saved and searched for a starter home. That, however, has never been the case in Cherry Creek. Renters want luxury features like gyms, pools, walking paths, plus, of course, convenience to shopping and work.
The surge in apartment developments here reflects the overall turbulence in the housing market. The high-rise building wave is tapping into an exploding need for more housing options for everyone from millennials to empty nesters. Nevertheless, the magnitude of the apartment buildup is far beyond the most optimistic forecasts.
Still, amidst labor shortages, record-breaking inflation and unparalleled consumer demand, Cherry Creek has embraced the district’s construction buildup with grace. “At a time when other communities have struggled, we have continued to be the metro region’s economic powerhouse, and have exceeded our own growth expectations with grace,” is how Cherry Creek North’s CEO Nick LeMasters explains it modestly.
Soaking In Money Sway
Stillwater Floods Detroit: Stillwater Capital is planning an 85-unit project on North Detroit. The project will replace several retail businesses along Detroit St.
It’s hard to quantify an exact rent impact of the fast-paced buildup. As of June 2023, the average rent for a 1-bedroom apartment in Cherry Creek was $3,000, a 15% jump from the previous year. Rent for a 2-bedroom apartment was $4,790, a 2% drop.
With a median home price of $3,488,577 and a median rent of $1,696, Cherry Creek is Denver’s most expensive neighborhood. Furthermore, based on growth in home prices in Cherry Creek over the last three years, it ranks No. 1 among all Denver neighborhoods.
Metro Denver is losing people, and so is Colorado as a whole, and that has to be of considerable concern. Between January and March of this year Denver lost 4,200 people, according to real estate brokerage firm Redfin. That places Denver among the top 10 cities people are leaving the most.
