Colorado Real Estate Journal - February 18, 2015
At long last, a key block in downtown is being developed. Atlanta-based developer Novare Group and partners, including Denver-based Simpson Housing, officially broke ground Feb. 17 on the 26-story, 354-unit SkyHouse Denver apartment tower at East 18th Avenue and Broadway. “SkyHouse Denver will eliminate a big chunk of nasty asphalt that has plagued downtown Denver’s urban landscape for decades,” urban planner Ken Schroeppel wrote on his DenverInfill blog. He further described it as a “parcel in dire need of development.” Simpson Housing also has been Novare’s joint venture partner on SkyHouse River Oaks, SkyHouse Houston and SkyHouse Dallas. “We benefit greatly from Simpson Housing’s involvement due to their knowledge and reputation in the multifamily industry and we are excited about this project in their home market of Denver,” said Novare President and CEO Jim Borders. In addition to Simpson Housing and Novare, the other development partner on SkyHouse is Batson-Cook Development Co. Records show SkyHouse received a $65.49 million construction loan from JPMorgan Chase. Borders said he found the site through the land seller, which Novare had done deals with in the past. SkyHouse will include about 6,900 square feet of retail. The retail will be along Broadway and Lincoln, according to plans submitted to the city. “We are excited to be working with Simpson Housing and Batson-Cook Development to add SkyHouse Denver to the fabric of downtown,” said Borders. “Denver has tremendous momentum, including a strong economy and burgeoning downtown residential market,” Borders said. “The Mile High City has been on our radar for several years and we are thrilled to have an excellent location that fits perfectly with what our residents want.” Most of the luxury apartment construction in the Denver area has been near Union Station, the Ballpark neighborhood and in adjoining neighborhoods, such as Jefferson Park and Lower Highland, as well the Golden Triangle. “We think this location in uptown serves as an untapped market due to its convenience to the office employment base,” said Borders. “We believe residents will enjoy the Denver Art Museum as well as Denver’s many green space offerings including City Park,” he continued. Novare also said the site provides direct access to MetroRide as well the 16th Street MallRide, all of which provide direct access to Union Station. “Light rail is also located nearby, which will allow our residents to access many of the major employment centers in the Denver region.” JP Morgan and U.S. Bank are providing construction financing and Simpson Housing, BatsonCook Development Co., and NGI Investments LLC, led by Borders, are providing equity. Batson-Cook Construction and Swinerton Builders are the general contractors. The building is designed by Smallwood, Reynolds, Stewart, Stewart and Associates. The apartment homes will all have 9-foot ceilings with floor-toceiling glass, quartz counter tops, hardwood floors, stainless steel appliances and porcelain tile. The average sized unit will be about 788 sf. It will include studios, one bedrooms and two bedrooms with dens. The rents will be competitive with other new luxury apartment communities in Denver. In addition to the SkyHouse amenity deck, the SkyHouse Denver will have vehicle charging stations, bike storage, an outdoor kitchen, a dog walk area and a dog washing station. The sustainable building is being built to Energy Star standards. “Environmental consciousness is an important consideration in the design, construction and operations of all of our buildings,” Borders said. The Energy Star certification addresses energy-efficient lighting systems, efficient mechanical systems and comprehensive testing throughout the project. “We also offer residents a multitude of environmental focused programs such as a comprehensive recycling, electric charging stations for vehicles as well bike storage and repair facilities,” Borders said. The development also will include a free-standing, 488-space parking garage on Lincoln with two levels below grade and five above, according to plans submitted to the city. Before it was a surface parking lots, the site was home to the “stately Cosmopolitan Hotel and the Hotel Metropole before they were demolished in 1984,” Schroeppel noted. The tower, he said, should contribute to the “ongoing restoration of downtown Denver’s urban fabric.”