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February 2017 — Multifamily Properties Quarterly — Page 31
the Metro Denver Economic Cham-
ber of Commerce, was doing one of
the things he does best in Denver in
January – talking about the Denver
economy and making predictions. In
a pie graph shared during multiple
presentations, Clark emphasized the
diverse nature of Denver’s present-
day economy.
It made me wonder if the press and
some investors are biased by Den-
ver’s history? Are the boom-and-bust
ways of Denver over; are things dif-
ferent now?
“You could argue the boom and
busts may be less impactful now,”
said Clark. “As Denver’s competitive-
ness and creativity has emerged over
the last 10 years, we are charting
a new path in the future. However,
there is an almost nonexistent sup-
ply of new affordable condos, all
housing, including rental housing,
is now more expensive, traffic has
worsened and the road to the moun-
tains on I-70 is more crowded than
ever.”
Clark was hopeful though. “Den-
ver’s central location with the moun-
tains, the sunshine and lifestyle
options will always be appealing,” he
said. “Plus, we have you millennials
now to help solve all of these prob-
lems.”
I told him he was right, like a typi-
cal millennial, I am hopeful about
solving those problems. However, it
wouldn’t be without the help and
guidance from his generation and
others. We are all in this together.
There are demographically divergent
paths that lay ahead for Colorado,
but Colorado is a pioneer state. We’ve
always had great leaders step up and
guide us into the unknown, up the
hill into a challenge.
Our optimism reminds me of some
of the stories Clark told me after one
of his presentations, about the Colo-
rado leadership who worked hard to
build out the rail system, expand the
convention center and make Denver
International Airport a destination
for millions.
During the recent Colorado Real
Estate Journal multifamily construc-
tion panel, Scott Johnson, division
president for Lennar Multifamily, said
the lack of condo defect litigation
reform has created an opportunity
for entrepreneurs.
An unbalanced condo market, high
housing prices and the challenges of
Interstate 70 are all issues that affect
Colorado’s appeal to millennials
and baby boomers. All three issues
require political pressure and ingenu-
ity to overcome.
Colorado, thankfully, has a long
history of leadership and political
cooperation that has proved success-
ful in the past. One of the smartest
investments we can make right now
is to take action and use the creativ-
ity and energy of our massive millen-
nial resource, while also tapping the
vast experience of our active baby
boomer pioneers to move our great
state forward. This is Colorado, after
all; we’ve got big mountains and
we have always enjoyed taking the
harder path. s
Blackshire
the area is a walkable, but
funky neighborhood char-
acterized by smaller cafés
and businesses, the design
of the leasing office should
reflect that aesthetic and
feel. The vibe of the leasing
office should reinforce the
emotions that brought the
prospect to the community
in the first place. Utilizing
reclaimed materials and
items from previous uses of
the property and capitalizing
on the history of the location
with photos and art are good
tools to enable the property
to fit within the neighbor-
hood.
With respect to amenities,
there often are overlooked
opportunities to achieve
authenticity and connec-
tion with a renter. With the
meteoric rise of e-commerce,
package rooms and mail-
rooms have become one of
the prime locations a renter
touches and visits every day.
Use the opportunity to take
this neglected space and
transform it into a chance to
reinforce the property’s iden-
tity. One idea is to use local
artists to decorate the space
or to incorporate a design
for the room that allows ten-
ants to connect with their
community before head-
ing to their apartments. It
doesn’t take much to elevate
what is usually a mundane
mail experience. Small and
inexpensive touches can
subconsciously go a long way
toward creating a positive
perception of the community.
Similarly, bike storage and
repair spaces are an increas-
ingly important amenity,
and creating a bike room
is a relatively inexpensive
capital expenditure project.
However, it also is an oppor-
tunity to add whimsy and
energy where it is unexpect-
ed through paint or super-
graphics – certainly more so
than the typical chain-link
fence and racks sequestered
in the corner of the garage.
If the property is edgy, artful,
granola – whatever it is – try
to reinforce that vision in an
affordable way. These ideas
can extend to numerous
amenity spaces to highlight
the identity of the property
and connect with the renter
in fun and meaningful ways.
In general, through lever-
aging thoughtful unit design,
leasing area aesthetics and
focusing on opportunities to
highlight the vision of the
property in amenity spaces,
it is possible to appeal to
and connect with the target
demographic in an authentic
and valuable manner. s
Mutz
costs by 13.6 percent for new con-
struction and 8.5 percent for existing
building projects, according to the
U.S. Green Building Council. Increas-
ingly, project owners are discovering
the benefits of recycled steel – the
most energy-efficient building mate-
rial to produce.
Advances in light-gauge and cold-
rolled steel systems are creating
a sustainability aspect previously
unwitnessed in multifamily projects.
Standardized and preassembled
framing components create a faster
and cleaner construction project
as on-site waste is greatly reduced
and disruption to the surrounding
environment and neighborhood is
minimized.
Preassembled framing components
are precision manufactured to meet
exact specifications and dimensions,
allowing for predictability unattain-
able in other structures that are cut
and built on site. Additionally, preas-
sembled components provide the
flexibility to build higher, adding sto-
ries without breaking the budget.
We recently completed a 12-story,
372-unit apartment building in Den-
ver’s Uptown neighborhood that fea-
tures more than 450,000 sf of total
building area. By utilizing the Pre-
scient framing system, the Alexan
Uptown project earned nine points
toward LEED certification. Without
the predictability, flexibility and sus-
tainability that advances in panel-
ized light-gauge and cold-rolled steel
systems create, a multifamily project
of this scale would not have been
possible.
• Senior living. The senior living
sector also is witnessing the numer-
ous benefits that advances in light-
gauge and cold-rolled steel systems
produce. Senior living projects that
use these advanced structural sys-
tems tend to be safer, more durable,
more dimensionally stable, mold
resistant, termite-proof, better for
the environment, longer lasting and
less expensive to complete than
alternative building materials like
wood or concrete.
Additionally, steel is much lighter
than concrete and, unlike wood, is
noncombustible, saving the devel-
oper and builder money on insur-
ance. Often, senior-living communi-
ties consist of multiple care facilities
within the same structure and, as
a result, these projects require a
unique design.
The five-story, 250,000-sf Morning-
Star Senior Living project in Lone
Tree is a prime example of how
building materials can deliver on
the specific needs of this building
category as the elements of various
care facilities are all located within a
single structure.
In the end, the AEC industry has
been slow to change, but technologi-
cal advances are quickly changing
that notion and reshaping the indus-
try. Safety risks, uncertainties, proj-
ect duration and on-site revisions
are reduced; installation reliabil-
ity and outcome predictability are
increased; and the project’s overall
quality improves as panelized light-
gauge and cold-rolled steel systems
advance.
Companies, owners and contrac-
tors that are ready to embrace
change and implement innova-
tion and technology will bring our
industry to an increased level of
productivity, while improving project
quality and mitigating risk and cost
for every stakeholder involved in the
design, development or construction
process. s
Patel
Thome
AMLI Residential
Found space can be turned into meaningful and inexpensive ameni-
ties, such as this maker room.
become legally obligated to pay, and
the insurance carrier has a duty to
defend against these suits. Defense
costs with most insurance carriers
do not reduce your limit of general
liability insurance.
This type of insurance is very com-
prehensive in scope but does come
with limitations and exclusions,
such as workers’ compensation,
business auto liability, employment
practices liability, errors and omis-
sions, privacy liability, technology
liability, directors and officers liabil-
ity, employee benefits liability and
pollution liability – all of which can
be bought back if needed or wanted.
One last item to consider would
be the addition of an umbrella or
excess liability insurance policy,
which goes above and beyond your
general liability insurance policy.
This umbrella does not increase
any limits of the property portion of
the policy – just the general liabil-
ity portion of the policy. How much
umbrella coverage is needed varies
based on the assets and net worth of
all individuals but, in order to pro-
tect your current assets and future
earnings as a result of a costly law-
suit, I always recommend additional
liability regardless of how many
assets are involved.
The details of an insurance con-
tract can be confusing and compli-
cated, but your policy is much more
manageable if you look at its various
parts and address those sections
applicable to your current needs. If
you can understand the basics of
policy composition and the informa-
tion each section provides, you will
have a fuller, more usable and com-
prehensive insurance policy. Here is
to a happy and healthy 2017. s