St. Anne’s Episcopal School
Are Apartment Builders Heading For A Dunking?
Slowing Metro Economy May Pull Rug From Under City’s Building Binge, Real Estate Firm Warns
by Glen Richardson
Home sweet apartment home! To millennials and older lifestyle renters apartments are not only a place to hang their hat but the linchpin for Denver’s apartment building binge. As apartment projects currently under construction come onto the market, however, weakening in demand could be on the horizon by year-end warns Denver-based James Real Estate Services (JRES).
In an average year there are approximately 4,000 to 5,000 new apartment units built in Denver, but in 2014 alone almost 10,000 units were built with another 20,000 units anticipated for 2015. An additional 20,000 units are in the planning stage for 2016. Thus over three years, over a decade’s worth of apartment houses may be built. Of course Denver is experiencing an influx of millennials because of its booming economy, but any slowdown may leave a glut in the apartment market.
In its latest quarterly analysis of the metro market known as the Apartment Perspective, Eric Karnes — JRES Director of Market Research — writes, “we see a strong possibility for deteriorating market conditions during 2015 and 2016.”
Skewed Numbers?
It is generally considered that if the apartment vacancy rate is below 5% it is an indication of an extremely healthy market for developers. But JRES raises doubts about the claims that the vacancy rate in Denver is actually under 5%. In reality Apartment Perspective says, “We believe that the metro Denver vacancy rate is more accurately in the 6-7% range rather than the estimated 4.9%.”
Stinging Analysis
In Denver the influx of younger residents or “millennials” benefits apartment demand, as does the rising demand for apartments by 
older “lifestyle renters” who no longer desire the responsibilities of property ownership. To some extent the number of college and university students also affects the market. In terms of younger renters, however, JRES says it is important to recognize that many are burdened by student loan debts and may not be making adequate salaries to justify renting some of the apartment units popular among developers.
An article in The Wall Street Journal in May indicated that continued high rent in cities like Denver is a result of the type of apartments being built. The article points out: “ [I]n some places, including Denver, Tampa, Baltimore and Phoenix, virtually all new apartment construction has targeted to high-end renters.” As a practical mat-
ter that means the developers of the high-end apartment complexes may soon be in a bind. The higher rents are necessary to pay the loans taken out to build the units and a downturn in the economy may result in a significant amount of bank foreclosures similar to what happened in Denver when the office building boom crashed in the 1980s.
But studio apartments, also called “efficiencies” by some, are returning as a popular unit type, especially in new upper-rental rate apartment communities. Many of these projects are oriented to younger residents who are attracted to urban locations and amenities, but prefer to live alone and do not need large apartments. Smaller “micro” apartments are popular in expensive cities such as New York, San Francisco and Seattle and are coming to Denver. One such project is Turntable Studios, recently opened in a former hotel near Sports Authority Field. There will be apartments at Turntable under 350 square feet but will cost over $1,000 a month to rent.
Demand Is Key
Overall, since upcoming supply is known, it now all boils down to demand. JRES recommends that buyers, sellers and renters maintain a healthy skepticism and carefully track employment growth. Even if there is a downturn in the apartment market, however, it should not last more than several 
years as long as the economy remains healthy and excessive development is avoided, JRES suggests.
James Real Estate Services, Inc. is a commercial real estate appraisal-advisory firm based in Cherry Creek. The firm offers a wide range of real estate appraisal services and products that help clients effectively analyze commercial and residential real estate assets and markets — as well as manage asset risk to realize asset value in a changing real estate marketplace. Information: 303-388-1100.
A Dozen Denver Apartments Open In 2015’s Second Quarter; Another In Glendale
A dozen new apartment complexes opened in Denver County during the second quarter of 2015 alone. Furthermore, Solana Cherry Creek — a new 341-unit development — just opened in nearby Glendale.
Apartments opening in Denver in recent months are:
Avenue 8 — Offering 163 units at 5805 East 8th Ave. by Rosemark Development Group in the Denver East.
Peregrine Place — A 65 unit complex by Catamount Properties at 4400 East Mississippi Ave. in Denver South.
Platt Park North — This is a 60-unit town home rental complex at 110 East Mississippi Ave. by Pando Holdings.
Steele Creek — The 12-story building at 3222 East 1st Ave. in Cherry Creek East is by BMC Investment.
Studio LoHi — Simpson Housing Group has opened this 114-unit complex at 2559 17th St.
Happy Haynes Appointment To Head Parks Department Widely Panned
by Charles Bonniwell
Mayor Michael Hancock’s appointment of CRL Associates lobbyist and former councilwoman Allegra “Happy” Haynes as newest executive director of the Denver Department of Parks and Recreation has been met with widespread criticism from across the Denver political spectrum.
An expensive national search was undertaken by the city for the new parks executive director headed up by a 10 person search committee which included Haynes. Denver Mayor Michael Hancock brought the search to a sudden halt declaring that he was simply going to appoint his long-term political ally to the $139,500 position without further ado. He declared sua spointe to the surprise of the search committee that “she is going to make one dynamic, awesome director of the city parks and recreation.”
Others were less enthusiastic about her appointment. Park advocate Trish Abbott noted, “She comes in the great tradition of Wellington Webb’s first appointment to the position, Charles Roberts, who went to jail for stealing a grease trap from the parks department to put in an A&W he had an interest in over in Aurora. The appointment demonstrates how little this mayor cares what the citizens of the city think. I would like to think this is the lowest of the low but we have got many more years ahead of us with Mayor Hancock.”
Denver historian Phil Goodstein declared, “Hancock has clearly shown he has a thorough contempt for parks and quiet open space. On the contrary, Hancock demands parks become commercial ventures. Where possible, he has even been ready to sell them off.”
As for Haynes, Goodstein opined, “She has been part of the nefarious machine of CRL Associates, a lobbying firm which puts Brownstein Hyatt to shame in terms of directing city council and assuring the adoption of very bad policy . . . If anything, Haynes is the personification of old institutional Denver: smug self-centered, utterly linked to the Democrats, and having no conception that any alternatives are possible.”
Few individuals were willing to go on the record praising her appointment although City Councilman Albus Brooks, a political ally of Mayor Hancock and Haynes declared that Haynes is “a stateswoman of Denver” who is well equipped to deal with the “complexity and the politics” of the job.”
Upon assuming the job Haynes declared that the job was “an appointment of a lifetime” although at age 62 she is approaching the normal retirement age for Denver employees.
Haynes has quickly become mired in controversy as she does not wish to give up her position as president of the Board of Directors for Denver Public Schools. She is up for re-election this November.
Denver Attorney Joe Halpern indicated that “Happy Haynes was a prime mover in the destruction of the Hentzell Park Natural Area. She advocated for the land swap as a Denver Public Schools board member.”
Community activist Dave Felice was not pleased by the appointment and her desire to hold two positions noting, “How can we expect better from someone who was in favor of giving away 11.5 acres of Hampden Heights North (Hentzell) Park?”
While some individuals publicly raised the question of finding serious conflicts of interest in being both the executive director of Denver and president of the Denver School Board, Haynes does not. She said, “During
the day, I’ll devote my work time to my role in Parks and Recreation,” and her nights she would work on being the president of the School Board. She has requested an advisory opinion from the Denver Ethics Board. That Board has come under fire itself for failing to find conflicts of interest in various other cases involving members of the Hancock administration including Planning Board head Brad Buchanan and interim Parks head Scott Gilmore and his wife Councilwoman Stacy Gilmore.
Trish Abbott noted, “I don’t see a problem. Ms. Haynes is best known for doing what she is told although with no small degree of utter incompetency. I am sure she can do two jobs very badly as easy as she can one. She is after all an all purpose political hack. In either position she is simply doing whatever the mayor or the people that control him want done, so I don’t see any conflict of interest. Moreover the Denver Ethics Board has indicated by and large that conflicts of interest don’t really exist as a theoretical concept in Denver government these days under Mayor Hancock no matter how blatant.”
Some citizens in Denver have indicated that they believe the entire Parks Department is under the control of lobbyists for real estate developers. When the Parks Advisory Board opposed Mayor Hancock’s giveaway of undesignated parkland in Hentzell Park he began to replace its members with real estate lobbyists like Marcus Pachner and Happy Haynes’ sister Khadija Haynes.
Regarding the appointment of Happy Haynes as executive director of Denver Parks, Joe Halpern stated, “She is the proverbial fox in the henhouse.”
Increasingly some good government advocates in Denver see the only solution to the destruction of the Denver Parks and Recreation Department is to advocate for voter approved Charter changes to limit the powers of the mayor. Joe Felice suggested, “Perhaps it is time for an elected independent park commission to take these decisions away from the mayor’s office.”
Trish Abbott and some other park advocates indicate that they concur with Felice’s concept. Whether they can make a vote a reality is an open question according to political insiders.
Is It Time To Radically Revise Portions Of The Denver City Charter?
Michael Hancock’s appointment of CRL Associates lobbyist and former politician Allegra “Happy” Haynes as the head of Denver Parks and Recreation was the final straw for many Denver citizens regarding whether the municipal government of Denver can be reformed as it is presently constituted to respond to the wishes of its citizens. With the ethically challenged Brad Buchanan in charge of Denver Community Planning and Development and the citizen boards of both Planning and Parks stuffed with lobbyists and political shills, there is almost no effective citizen input anywhere in the process. At one time local neighborhood associations thought they had the ear of their duly elected city councilperson, but in many cases that is no longer true.
Citizens have fought back bringing lawsuits in the case of numerous ill-conceived projects, but lower Denver courts to date appear to believe their job is to prevent any of the cases from ever being heard by a jury of Denver citizens. Many residents increasingly believe the system most definitely does not work and the deck is stacked against the average citizen in favor of real estate developers and other politically connected groups.
Historian Phil Goodstein has queried why we even pretend that people like Happy Haynes and Brad Buchanan are anything but bought and paid for hacks of CRL Associates and Brownstein Hyatt. He has suggested, somewhat facetiously, that we monetize the process similar to Hancock’s efforts to monetize Denver parks. Under the Goodstein plan the positions of executive directors of parks and planning would be put out to bid to the likes of CRL Associates and Brownstein Hyatt “who would pay to name their puppets to office.” Would his suggestion actually be any worse than the present system?
At the spring municipal election three candidates — Wayne New, Rafael Espinoza and Paul Kashmann — upset candidates strongly supported and funded by Mayor Michael Hancock and his coterie of lobbyists and real estate developers. But as Rafael Espinoza has articulated the Denver City Charter invests enormous power in the Denver mayor. Maybe it’s finally time to take some of that power away and in turn empower average citizens of the City and County of Denver.
Concerned citizen Dave Felice has suggested that we alter the City Charter with a citizen initiative to provide for a separately elected independent parks commission that would appoint its own executive director. While we are at it, a separately elected Community Planning and Development commission would also be appropriate.
Of course Denver is not the only municipality in Colorado that has seen its planning process hijacked by real estate developers. In Aspen and Steamboat Springs the citizens got so tired of an endlessly corrupted process that they changed their city charters to require a public vote to approve certain real estate projects. You have the feeling that some truly destructive neighborhood projects now under construction in Denver would have never seen the light of day under such a system.
The City Council could hardly object to such charter changes. In 2010 they merrily gave away to the mayor any and all control of the parks in Denver. The suggested charter changes would simply in turn take it away from the mayor and give it back to the people not only for parks but also development and planning. As a practical matter what in the world do the citizens of Denver have to lose from such changes to the City Charter?
— Editorial Board
Riding The Storm Out
We’ve all been there in our dating lives — at the point where nothing seems to work and your self-esteem spirals like Alice down the rabbit hole. There are many variables of how and why this horrible mindset of doubt can creep in to your mind and body and start to consume you. This mojo draining phenomena will affect your ability to network in the dating world properly.
Maybe you’ve gained some weight or you’re working through health problems. Maybe you’re working through an injury or personal body image issues stemming from aging or myriad reasons. You might be getting out of a long-term relationship that took a toll on your mind and body leaving you “relationship fat,” or worse, lacking self-worth. Whatever the case is, if you’re not feeling confident about your mind and body, STOP dating!!
Better yet, I forbid you to date! Remember I always say, water seeks its own level and I believe people do too. If you are struggling with the types of things I just described now is no time to market yourself to other human beings. I am aware how difficult it is not to reach out to people when you are at your worst or struggling, but believe me when I tell you that you have to, at least in a romantic way, in order to soften the loneliness or feel better about yourself by being around someone who is as miserable as yourself. I understand misery loves company but you’re just wasting time that could be used to fix yourself, and worse yet, that miserable company may never go away.
Here’s what needs to be done. I call it dating lockdown. As painful as it may be you need to go into survival mode which is a lot like safe mode upon startup of your personal computer. Starting your computer in safe mode allows your computer to start Windows only to search for errors and prevent further damage. Dating lockdown is similar in a sense that you are allowing yourself to go into a mode of thinking that will force you to introspectively take emotional and physical inventory and disallow you from doing any further damage to an already dire situation. Let’s face it, no one is getting any younger around here. The more time you waste accumulating rings around your tree trunk being single, the less viable of a catch you become to the good ones out there.
Here are some things to keep in mind when you’re on dating lockdown…
- Dig deep and fight! There is a reason people get depressed and many time psych drugs are not the answer. The body has so many survival mechanisms in place it’s astonishing. There is probably a reason you get sad when you look down and can’t see your feet. The answer to the root of your sadness isn’t a pill; the answer is getting rid of your big fat gut so you can see your Nikes again. By no means am I asking you to be perfect, just be in the best physical shape you that you can be so you are confident about how you look and feel. Sometimes this can be a battle, but a fight worth having nonetheless. The rewards pay dividends in many aspects in your life. Not just romantically.
- Ask yourself this question… Are you a good person to be around? If you were looking to spend time with someone would you choose yourself? I’m guessing if a lot of us were being honest we’d say no. Do you have people’s best interests in mind or do you do things that only benefit you? Are people’s thoughts and feelings safe with you or do you use them to pass judgement or use them against someone at a later time?
- Do you have the ability to live for the future and learn from the past rather than having your past drive your future? This is important, I’ve spoken to countless people who are “unable” to do certain things because their past forbids whatever the present may hold, a challenge or otherwise. Just make sure you’re healed enough from your past so that when you are dating again you’re not stunting someone else’s growth because of your personally unaddressed limitations.
- Are you an overall happy person? I know it sounds cliché but no one will ever make you happy until you’re happy with yourself. How tragic would it be that by some dumb luck you did meet the love of your life but you had no idea what to do with them because you’re not happy with yourself. To me there is nothing more heart breaking than finding someone you have a mad connection with but you’re in two different times in your life.
Dating is like playing cards. It’s all in the odds. When you play cards don’t you want to make every move possible to ensure that hand you’re holding has the best odds or greatest chance of being the winning hand? Give your dating life the same odds for success and stack your deck by doing the hard things it takes to be a viable dater, or just human for that matter.
October date tip! Ask a lady to carve pumpkins with you. Women love doing fun crafty things that remind them of their childhood. Two pumpkins, one bottle of wine and a couple of candles.
Happy Halloween!
Your pal, Sheik
