Emerging Trends in Real Estate Report
Chuck DiRocco’s Presentation
Handout 1 (Real Capital Solutions)
Handout 2 (Real Capital Solutions)
ULI’s Emerging Trends report praises
Denver, saying better days ahead
by John Rebchook
Denver did not quite make the Top 10 list in the closely watched Emerging Trends in Real Estate 2012 report, but it would be hard to imagine that the Mile High City would receive a more glowing analysis in the closely followed and influential report, published by the Urban Land Institute and PriceWaterHouseCoopers.
The report, released Jan. 12, at a breakfast attended by more than 350 real estate and business leaders, ranked Denver No. 11 in two categories: Investment Prospects for Commercial/Multifamily Properties and Development Prospects for Commercial/Multifamily Markets.
In what is probably a surprise to no one, Washington, D.C., was ranked No. 1 in both categories, as well as a third category: For-Sale Homebuilding Prospects.
But the report released at the event, the most popular sponsored by Urban Land Institute Colorado, described Denver as being in fine shape and said it will only get better.
“Downtown steadily remakes itself as an enticing, highly desirable
21st century city center,” according to the report.
“The acclaimed LoDo … entertainment district is being built out, surrounded by sustainable office development and boutique apartment projects: 4,000 units begin to come off the drawing boards,
promising “significant changes ahead.”
The report tracks the evolution of LoDo this way.
“First, new restaurants and a sports stadium attracted nightlife; now developers cater to echo boomer residents with social amenities like landscaped roof decks, gyms and community rooms.”
It quoted one person interviewed on Denver as saying: “We’re gradually becoming a 24-hour city.”
The report moves on to the redevelopment of the historic Denver Union Station, which it notes will be redeveloped into a “full-blown light-rail, bus, and train transportation complex, serving rising numbers of suburban
commuters who now have alternatives to driving on congested highways.”
The Regional Transportation District, of course, recently chose Union Stage Alliance – headed by Walter Isenberg of Sage Hospitality and long-time historic developer Dana Crawford – to redevelop Union Station into a project that will include a 130-room boutique hotel and a 24-hour diner in the station. The plan is estimated to pay RTD $65 million over the 60-year term of the lease and generate $130 million in tax revenue.
The Emerging Trends report doesn’t stop with Union Station, however, and notes that transit-oriented developments will continue to pop up along new suburban stops.
Here is how one person described the metro area:
“Denver feels good. We have the draw of good-paying clean-tech, energy industry jobs with a reasonable cost of living and improving
transportation.”
The Emerging Trends summed up Denver this way:
“Although the office market moves sideways, housing sidestepped
the boom/bust debacle. Better days definitely seem to be ahead.”
Ann Sperling, chief operating officer for the American region of Jones Lang LaSalle, moderated a local panel.
Panel members included:
Marcel Arsenault, principal of Real Capital Solutions, which has acquired, redeveloped, leased and sold more than $2 billion in commercial real estate.
Clark Atkinson, executive vice president and partner in Shaw Construction, who has led teams completing more than 3.5 million square feet of projects.
Andrew Hancock, a member of FirstBank’s Credit Policy Committee and chairman of its loan committee.
David Sternberg, senior vice president of Brookfield Properties, which owns Republic Plaza and recently acquired 1801 California.
Charles “Chetter” Latcham, president of the Colorado Division of Shea Homes, which has built more than 3,500 homes and 1.5 million square feet in the Denver area.
Letters from Listeners
Thanks for the share on this. Very good information. I am glad to see that Denver is high on the list of cities to watch this year.
Gieo Pensoneault
