Page 42 —
COLORADO REAL ESTATE JOURNAL
— June 1-June 14, 2016
We can predict the future.
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DENVER
•
DALLAS/ FORT WORTH
ENGINEERS
•
LAND SURVEYORS
everyone in the business, said
John Norris, principal of Norris
Design, who spoke on the prod-
uct design/land planning panel.
“Hundreds of thousands of peo-
ple are moving to Denver,” Norris
said.
“All of this new business com-
ing here is really exciting,” Norris
said.
“On the other hand, there is not
enough supply to handle all of
that demand. We see (that imbal-
ance) reflected in the cost of hous-
ing, the cost of infrastructure.”
Thomas Kopf, a principal of DTJ
Design, said one way to make
homes more affordable is to
design and build “tall, thin and
tiny” homes.
David Clinger, president of
David A. Clinger Associates, said
one way to deliver more afford-
able homes in the suburbs is
to “forget the grid” layout and
build homes in clusters. Homes in
clusters were something he was
designing almost 40 years ago
in the Denver area and in Boise,
Idaho, and the concept is resurfac-
ing, he said.
Majerik, who sat on the home-
builder panel, said she prefers the
term “attainable” to “affordable,”
because affordable connotes deed-
restricted, government-subsidized
housing for people meeting cer-
tain area median income require-
ments.
Given that land costs continue to
skyrocket, she said at Wonderland
they work more closely than ever
with trade partners to find cost-
efficient ways to build homes.
Osborn, who was disappoint-
ed that the state Legislature once
again did not reform construction
defect laws, said that local jurisdic-
tions alsomust “look at their codes
and accommodate higher density.
“Our most dense development
is six units to the acre and that is
not dense at all,” Osborn said.
Jeffrey D. Willis, president of
Berkeley Homes, said it might
be strange to hear a single-family
homebuilder such as himself talk
about the need for density.
More homes per acre, however,
wouldmake housingmore afford-
able, Willis said.
He said many cities, though,
have little desire for high-densi-
ty development and neither do
many builders, because of today’s
“litigious environment.”
Willis, alluding to the state Leg-
islature’s decision to not pursue
construction defect reform once
again, noted that litigious environ-
ment “is not improving as we sit
here right now.”
For example, he said the “high-
est and best use” for a commu-
nity Berkeley Homes is building
inWestminster, which “is between
Boulder and Denver, has access to
U.S. 36, RTD and a neighborhood
feel …should be attached product
or townhomes, to get more units
per acre.”
Instead, they are building single-
family, detached homes.
The homes, with 1,655 square
feet to 2,064 sf, are on 2,500- to
3,000-sf lots and have an “almost
townhome layout,” he said.
They are priced from the high
$300,000s to $400,000s, which can
be considered attainable in today’s
market, he said.
Douglas Elenowitz, principal of
Trailbreak Partners, said one chal-
lenge is that the “zoning does not
exist” for a high-density, walkable
communities in many areas.
But after some “vigorous”
debate, that didhappenat itsClear
Creek Transit Village at Federal
Boulevard and West 60th Avenue
along RTD’s Gold Line.
Clear Creek Transit Village in
Adams County is shaping up
to be “a look a little bit into the
future,” he said.
It represents a transit-oriented
development, or TOD, that is
denser than the nearby Midtown
community.
The tallest buildings will be
along Federal Boulevard. The vil-
lage, a mere seven minutes from
downtown and just north of some
of the trendiest neighborhoods, is
across the street from a light-rail
station; it demonstrates how an
industrial use can be transitioned
to a mixed-use community that
will include housing, restaurants
and retail.
It also will be near a private ski
lake.
“It’s a bit of an urban village in
an urban setting,” Elenowitz said.
“It’s a bit of an oasis, if you will.”
And because it is along Clear
Creek, residents there will have
access tohundredofmiles of trails.
It could have up to 1,120 units
and250,000 sf of commercial space
when built out, he said.
Meanwhile, some areas that
used to be “drive until you qual-
ify” markets increasingly are
attracting homebuyers.
“Erie is white-hot,” said Chad
White, an associate for Real Estate
Development at Hines.
Windsor and Lochbuie also
are hot markets, added White, a
speaker on the land banking and
private equity panel.
Kboudi said that the Denver
area is growing so fast that the
demand is outstripping the sup-
ply for both rental and for-sale
homes, driving up prices.
“Wedeliveredabout 8,000 apart-
ment units last year and we will
probably deliver another 8,000 this
year, and, as crazy as it sounds,
that may not be enough,” Kboudi
said.
Kboudi explained why Denver
is “kicking tail” this way.
“People are genuinely happy
here, want to be here, want to
make it a better place,” Kboudi
said.
s
Housing
From left are Mike Kboudi, Bill Jencks, Douglas A. Elonowitz and Jeffery
D. Willis.
and additional headaches
involved, many developers are
choosingnot toventure intoLEED
Core and Shell certification. But,
that decision could be shortsight-
ed because LEED-CS is proving
to be a sound business decision.
For Boulder-based W.W. Reyn-
olds Companies Inc., being green
is not only about being globally
responsible, but they also know it
pays off by making their proper-
ties more attractive to potential
tenants.
“We’ve been navigating the
complex energy compliance rules
in Boulder for 40 years,” said Jeff
Wingert, president and chief oper-
ating officer for W.W. Reynolds.
“So, while we understand the
demands of the city’s Green Point
program, at the same time we
want to create sustainable solu-
tions that meet the needs of our
clients and customers. They want
LEED certification for their build-
ing, and we know it will save on
operating costs over the life of the
building.”
A study by the CoStar Group
found that LEED-CS-certified
buildings actually outperform
their nongreen peers in key areas
such as occupancy, sales price and
rental rates, sometimes by large
margins. According to the study,
LEED-CS buildings enjoy rent pre-
miums of $11.33 per square foot
over non-LEED peers and have
a 4.1 percent higher occupancy.
So, while LEED-CS certification
may add upfront costs, the ben-
efits of achieving higher rents and
occupancy with lower operating
costs clearly outweigh the upfront
expenses.
According to Wingert, the deci-
sion to go for LEED Gold Certi-
fication on a recent project was
relatively easy since the city of
Boulder’s energy code is effective-
ly the same as LEED certification.
“On the Wencel Building, we
decided to go for LEED Gold cer-
tificationbecausewith city compli-
ance we were pretty much there,”
said Wingert. “And the Boulder
office market responds favorably
to that LEED certification.
“What we’re seeing is thatmany
of our tenants are using their
buildings to recruit and retain the
best people,” said Wingert. “So,
it’s very important for our tenants
to see that LEED plaque because
it’s proof that the building is green
and sustainable. For our tenants,
and for our business, building
green in Boulder just pays off.”
s
ence in the center city. In 2015,
public spaces were activated for a
collective total of 749 days. Events
like Meet in the Street, produced
by theDowntownDenver Partner-
ship and funded by the Down-
town Denver Business Improve-
mentDistrict, resulted in 30percent
more pedestrian traffic on the mall
and 60 percent of people spending
more time in the space.
Tourism and attractions
More than 15 million people,
including one million conference
attendees to the Colorado Conven-
tion Center, visit the city each year
and spend a total of $4.6 billion.
DowntownDenver’s 32 hotels also
experience high occupancy rates,
and four newhotels are planned.
For more information and to
view the complete 2016 State of
Downtown Denver report, visit
s
Infill
DDP
SM
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