Colorado Real Estate Journal - September 16, 2015
A 75,500-square-foot Class AA office building will be developed on the bustling East Belleview Avenue corridor in Denver Tech Center West. Kentwood Real Estate CEO Peter Niederman and Frank Hutto, a Denver energy industry executive, will develop One DTC West, an approximately $24 million project, at the northwest corner of East Belleview Avenue and South Niagara Street. Kentwood Real Estate, which is on track to do $2.3 billion in sales this year, will occupy the top floor of the four-story, multitenant building. “It’s a rare opportunity to be able to a c q u i r e such a w o n d e r - ful parcel where we’re seeing most of the growth happening in the Denver Tech Center,” said Niederman. “It’s not just a building for Kentwood. It’s a building that we feel will be a great investment to own long term.” Niederman and Hutto’s partnership, HN Partners, plans to break ground on One DTC West April 1 and deliver the LEED Gold building in summer 2017. The 2.4-acre development site is across the street from the Belleview Station transit-oriented development, near restaurants, luxury apartments and at the gateway to executive housing in Cherry Hills Village. Michael Barber of Barber Architecture is designing the building to take advantage of the prominent corner site to create a signature landmark. The exterior is glass curtain wall and custom-finished architectural concrete, said Barber, adding night lighting will enhance and further strengthen building identity. Extensive landscaping with a particular emphasis on the East Belleview Avenue frontage and a main entry court integrate One DTC West with the site, he said. Much of the southeast submarket’s office space is 25-plus years old, and tenants are seeking newer spaces that offer higher ceiling heights, efficient design and modern finishes, said Wulf. “What we’re seeing overall in the southeast market is a real demand for quality office space,” he said. Being on the west side of I-25 near Cherry Hills Village is a real plus for the building because it is close to where decision makers live. “They really like the quick, easy commute without having to cross over I-25,” he said. One DTC West will offer a great location and “fantastic” views. “The identity on Belleview will be really compelling,” Wulf said. “We have a great team,” said Niederman. He said the building is getting good traction from real estate settlement groups, investment companies, technology firms and others that easily could consume about 20,000 sf. There also is interest in a 5,000-sf space at the lobby level that is targeted for a local or national bank. Kentwood Real Estate will have its DTC sales office on the top floor of the building, which also will house its corporate operations, including finance, information technology, marketing and relocation, in another 4,000 sf. Kentwood’s DTC offices have been in the Park Plaza building for nearly 20 years. “What is important to us is constantly trying to upgrade our image, and this was a good time to really take who we are and what we do to the next level,” Niederman said. The building occupies the last development site west of I-25 on Belleview, he said. It is just west of the 320,000-sf One Belleview Station speculative office building that Prime West and Goldman Sachs are developing. While the two buildings have similar floor plate sizes and lease rates will be competitive, Wulf said the differentiator will be whether a tenant wants to be a small tenant in a large building or a large tenant in a small building. Niederman and Hutto partnered a few years ago to buy 32 luxury units at Centerra Plaza in the DTC. Two years ago, they and their spouses also donated 2.5 acres of land worth an estimated $1.5 million to Cherry Hills Village for an open space park in honor of Hutto’s young son, Alan, who died in 2006. Niederman said it’s exciting to partner with Hutto to develop a new building in the midst of activity in the tech center. “It’s about acquiring and developing great pieces of real estate,” he said. The building will include high-quality interior finishes, a 17-foot main-floor lobby with floor-to-ceiling glass, 9-foot, 6-inch ceilings in tenant spaces and 10-foot ceilings on the top floor. “All floors have continuous glass, taking advantage of the spectacular Western mountain views,” said Barber, whose company designed such notable projects as the Re/Max International Headquarters, Aurora Municipal Center, Crescent Town Center, Liberty Media Headquarters, among others. One DTC West will incorporate a three-level parking structure, providing a 3.5:1,000 parking ratio. “Michael Barber designed a great building,” said Doug Wulf of Cushman & Wakefield, who leads the leasing team.