CREJ - Multifamily Properties Quarterly - July 2015

Sustainably focused Factory Flats taking a chance on condo development

Colorado’s desperate need of for-sale condos, especially in the Denver metro area has become so great that some development teams have decided to push forward with plans for condo projects despite the state’s current construction defects law.

GreenSpot Real Estate and Urban Green Development have broken ground on Factory Flats at 3198 Blake Street in the River North neighborhood of Denver.

Factory Flats features 24 oversized residential units that range in size from 1,188 square feet to 1,456 sf.

The mixed-use project also has plans for office and retail space.

“Factory Flats is exactly the type of development that Denver needs right now,” said Tracye Herrington, co-owner, co-founder and employing broker of GreenSpot Real Estate. “The city has very few new construction for-sale condo options, and as millennials and baby boomers continue to come in droves to Denver, they want to live in beautiful, green, community-focused places in vibrant, walkable neighborhoods like RiNo.” Herrington said the risk of being sued for construction defect is something that she is definitely thinking about, but at the same time, is confident that diligent planning and expert construction will mitigate the thought of litigation.

“We are taking all necessary steps throughout the process,” said Herrington. “Through the use of forensic documentation we are set up better so that we don’t have the complexities that lead to defect. We will make sure that the homeowner association is funded and insured well and the developer also is building an insurance policy into the documentation.” Factory Flats is a sustainably focused condo development that will feature LEED certification and solar-powered units, something that Herrington said also aids in reducing the chance for defect lawsuits.

“Because this is a green project all the systems are high quality and are built to a higher building standard,” said Herrington. “Of course there is still risk, but it is a risk we are willing to take and because of the way we are building this complex we believe the chance of litigation will be much lower.”