Creek’s Apartment Construction Isn’t Just Booming, It’s Exploding

by Valley Gadfly | Jun 23, 2023 | Main Articles

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.

High-Rise Apartments Going Up At Cherry Creek’s Sears Store Site

by Valley Gadfly | May 22, 2023 | Main Articles

The Eight Story $400 To $500 Million ­Project To Build 430 Apartments, ­Restaurants And Retail

by Glen Richardson

Curtain Call: The empty Sears building along 1st Ave. in Cherry Creek North is set for demolition. Construction is expected to begin in mid-2024, with completion in two years.

The unoccupied Cherry Creek North Sears building that has eluded devel­opment and sat empty since 2015, is finally going to hear the sound of trucks and construction equipment at work. ­After years of false starts, announcement that BMC Investments will improve and enhance the abandoned store site is electrifying news in the booming district.

Plans proposed by BMC’s Matt Joblon, found­ing partner & CEO, to create a “flagship centerpiece” on the 4.28-acre site intrigues and fascinates virtually everyone. Job­lon — his firm has completed ­multiple apart­ment, hotel, and office projects in Cher­ry Creek North since 2013 — plans an eight-story multifamily complex. The site will also include 100,000-sq.-ft. of retail and restaurant space plus an “outdoor paseo” for entertainment. Initial site development plans have been submitted to the City & County of Denver by BMC.

Located along East 1st and 2nd Ave. between Clayton Lane and Josephine St. — one of the last developable sites in the district — demoli­tion and new construction work at the site is ex­pected to begin by mid-2024, with completion in two years. The Cherry Creek West project planned directly across First Ave. at the Cherry Creek Shopping Center, also expects to begin construction in mid-2024.

Development Firms

At the end of last year Atlanta-based Invesco Ltd. — now the sole owner of Cherry Creek’s Clayton Lane — selected BMC In­vest­ments and Los Angeles-based Prism Places to develop the property. Denver’s Tryba Architects — the same firm that designed the initial 9.5-acre Clayton Lane for Nichols Partnership 20-years ago — has been tabbed as the project’s architect. Employee-owned, Denver-based PCL Construction is the general contractor.

The development site includes the Crate & Barrel store on the corner of 1st Ave. and Clayton Ln. BMC and store officials are work­­ing through options for the site, in­clud­­ing leaving the building untouched. If the decision is to demolish the building, architectural plans call for it to be replaced by a five-story mixed-use residential building, but the below-grade parking garage would be preserved.

To keep businesses, residents, and shoppers cognizant of changes ahead, here’s the Chronicle’s community guide for what to anticipate:

What’s Changing

Betwixt & Between: Crate & Barrel at 1st and Clayton Ln. is a slice of the makeover site. BMC and store execs are reviewing op­tions. Architect’s draft shows a five-story res­idential building.

The old Sears store is being replaced by an eight-story apartment building with 430 studio, one-bedroom, and two-bedroom units.

In addition, 100,000-sq.-ft. of retail and res­taurant spaces will be added. The units will range from 1,200 to 2,000-sq.-ft. Two of the spaces will be reserved for minority-owned art-retail units at more affordable rental rates.

The site will also include an outdoor court­yard-paseo designed for ­entertainment. From 100 to 200 events are planned per year. Live band concerts are expected to be included in the site schedule.

What Won’t Change

The Whole Foods Market at E. 1st Ave. & University Blvd. has a long-term lease and won’t be relocated or demolished. The store will stay in its long-established spot.

In addition, the five-story Clayton Lane Parking Garage next to Whole Foods won’t be taken down. Independent of Whole Foods customers use, the Clayton Lane con­do owners will continue to have access. Furthermore, parking for nearby offices will endure.

Sears Saga: The Cherry Creek Sears store opened in 1954, part of what was once the largest U.S. retailer. Richard Sears and Alvah Roebuck issued their first catalog in 1891.

Development strategy is to follow current zoning, with no plans to request zoning variances. Moreover, structures east of Clayton Lane will not be changed or altered.

People safety remains the top priority for Clayton Lane and the Cherry Creek North community. People continue to feel safe in the district day or night — it’s a shopping sanctuary and safe neighborhood. Keeping it safeguarded is crucial, declares BMC’s Matt Joblon.

Street Enhancements

Clayton Lane Climax: BMC Investments to complete Cherry Creek’s Clayton Lane proj­ect launched 20 years ago. Swap of emp­ty Sears store for high-rise, retail is plan­ned on 4.28-acre site.

Restructuring of existing storefronts on Clay­ton Lane and 2nd Ave. are being de­sign­ed to engage customers and create a charm­ing, eye-catching street.

Store layouts will be updated into small- format floor plans preferred by boutique shops and restaurants. They are adjustments that impact performance and make spaces competitive. Interiors of ground floor retail spaces will be revamped and modernized; effective designs intended to dramatize the space and stimulate sales.

There is some unease that Cherry Creek North’s increasing density could create com­munity character concerns. District den­sity, however, will be somewhat offset by the planned outdoor courtyard. There’s also nervousness that building height limits — all buildings 8-12 stories in height — are causing the district to become monotonous.

Story Of Sears

The Sears store in Cherry Creek opened in 1954 after Sears closed its store in downtown Denver. The. Cherry Creek store on 1st Ave occupied 133,493-sq.-ft. and the ad­jacent Auto Center took up another 18,769-sq.-ft. The combined store and auto center at one time had 66 employees.

Sears declared bankruptcy in October 2018, resulting in the closing of Denver’s last two stores. They were located in the South­glenn Mall on S. University Ave. and in Lakewood’s Westland Center.

Richard Sears and Alvah Roebuck issued their first catalog containing 322 pages in 1891. The first Sears retail store opened in Chicago in 1925. At its peak, Sears was the largest U.S. retailer with 3,500 Sears and Kmart stores.

Is Denver Drying Up?

by Valley Gadfly | Apr 21, 2023 | Main Articles

With Colorado River Sapped By Drought, Denver, Suburbs Are Scrambling For Water

by Glen Richardson

Lake Mead In Need: With the Colorado River at historic lows, Lake Mead Reservoir may not have enough water to generate hydropower, which would have a devastating impact on Denver.

Denver has a water crisis! The city and surrounding suburbs are running out of H2O. Why? Drought and climate change are draining the Colorado River dry. The river and watershed declined 20% this century. In 2021 the first-ever federal emergency water shortage declaration was declared. The lines of supply and demand for the Colorado River were crossed in 2000. Colorado and other western states were taking more water than the river had to give resulting in drainage of the two biggest reservoirs in the country, Lake Mead and Lake Powell.

It’s doubtful that all 1,450 miles of the Colorado River will turn to dust. But Lake Mead and Lake Powell are at historic lows. If water levels dip much lower, Colorado’s northernmost reservoir won’t have enough in the tank to both fill Lake Mead downstream and generate any hydropower, which would have devastating effects on the electricity grid to our city-state, plus a half-dozen other western states.

So far Colorado has been able to meet the water needs of Denver’s 5.8 million Front Range residents. But as the population surges while climate change escalates, Denver Water and suburban cities are suddenly scrambling to secure and shore up supplies. Denver Water gets about half of its supply from the Colorado River system. Water for more than one million homes on the Front Range could be lost and thousands of acres of farmland on the Western Slope and Eastern Plains may go dry. Remember, Colorado is also legally required to supply water to downstream states.

Water For Denver Water

Creek Flow Improved: A stretch of Cherry Creek that flows through Denver was restored at the end of 2021. Stormwater runoff and water quality was reestablished after eight-years of work.

Denver Water — the city’s chief water utility — collects rain and snow across a 4,000-square-mile area — capturing about 94 billion gallons in an average year. Since half of Denver’s drinking water comes from tributaries of the Colorado River on the west side of the Rocky Mountains — and the river basin has experienced a megadrought from the last two decades — the utility and the city are preparing for a future of increasing scarcity by diversifying water sources and ramping up conservation and efficiency efforts.

Summit County’s Lake Dillon Reservoir — Denver Water’s man-made and owned reservoir — is one of the largest sources of drinking water for Denver. With surging population growth in metro Denver, it may soon leave Dillon high and dry during most summers. Experts predict between 19 and 24 dry years during the next 26-year period. By late summer the utility begins piping water out of Dillon Reservoir via the Roberts Tunnel — a 23-mile pipe that runs under the Continental Divide and into the North Fork of the South Platte River — delivering it to Denver Water.

In June of last year, the city and county of Denver and the U.S. Army Corps of Engineers started moving forward on a $550.3 million project to improve the South Platte River and its tributaries. The work aims to restore a highly degraded river and boost habitat while reducing flood risks along the river. Also, a stretch of Cherry Creek that flows through Denver — between E. 6th Ave. on the North and Colorado Blvd. on the east — was restored at the end of 2021 after eight-years of work. The finished work improves stormwater runoff and water quality. Further, wildlife habitat and recreation were enhanced. In addition, Chatfield Dam — originally built for flood protection — is now also being used for water storage. Denver Water maintains a storage pool of more than 27,000 acre-feet. Water storage at Chatfield is also helping Centennial, Castle Rock, and Castle Pines supply their growing populations.

Serious Suburb Steps

Turf Tradeoff: Denver and suburban cities are focusing on turf replacement plans as the next reservoir of water. Adoption is just beginning but it’s seen as the cheapest, fastest, most reliable new supply.

Denver’s suburbs — the center of housing sprawl — continue to boom, creating a scramble for sustainable water supplies as they realize that they’re running out of water. Communities such as Aurora, Arvada, and Castle Rock are taking serious steps to meet current demands, recognizing that water supplies are likely to worsen. They face higher water prices, dwindling supply, plus older collection and treatment systems.

Aurora no longer allows grass in medians or decorative spots at offices, plus no home lawns front or back. Aurora has also banned new golf courses. Aurora Water will buy existing turf plus design a low-water garden for free, and pay material costs up to $3,000 for 500-sq.-ft. Arvada has yet to ban turf but has doubled connection fees. Fast-growing Castle Rock, however, has banned turf in front yards of new homes and is offering developers steep fee discounts for water-saving. Without a turf ban, Denver Water is working with the city on updated building codes that may result in stronger turf limits. Denver is also considering a cap on irrigation at 7.5 gallons of potable water per square foot.

Lastly, a new turf replacement program is set to roll out statewide this year. It will pay homeowners to convert some of the grass in urban and residential yards into more water-efficient landscaping. It is the first time the State of Colorado had dedicated funds expressly to turf replacement. The bottom line: Denver and Colorado are focusing on turf replacement programs as the city-state’s next reservoir of water. For the foreseeable future it is likely to be the cheapest, fastest, and most reliable form of new supply.

The Heat Is On

Chatfield Storage Space: Built as a flood shield, Chatfield Dam is now used for water storage. Denver Water keeps 27,000 acre-feet. Centennial, Castle Rock, and Castle Pines also save water.

Average temperatures in Denver and statewide have increased by 2.0°F over the past 30 years, according to the Colorado Water Conservation Board. However, heat waves are becoming more common, snow is melting earlier in spring, and less water flows through the Colorado River.

Furthermore, the frequency and intensity of heat waves are increasing even in places with cooler average temperatures. Warmer temperatures will affect evaporation rates in our rivers, streams and reservoirs, possible making less water available for beneficial use.

Recent wet weather hasn’t ended the drought, and won’t cure the driest period in the past 1,200 years. Moreover, researchers say the state is likely to see 50% to 60% less snow as the next century approaches. Less stream flow in Colorado probably also means the Centennial State will increasingly look more like Arizona and New Mexico.

Trio Of Neighboring Cities Face Dire River Reckoning

As Valley communities scramble to meet the needs of residents as water withers in the Colorado River, a proposal by the Biden Administration would almost entirely cut off river deliveries to Phoenix, Tucson, and Las Vegas. That’s the option unless California agrees to proposed equal cuts for all three Colorado River basin states. The proposals give Secretary of Interior Deb Haaland authority to cut water use on the river.