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AUGUST 3-AUGUST 16, 2016 Simpson buys LoDo/Ballpark apartments Inside by John Rebchook Denver-based Simpson Housing recently purchased two prized apartment communities in the LoDo/Ball- park area of downtown Den- ver. Simpson Housing beat out numerous other potential ‘Sea’ change buyers and paid $81.9 million, or $362,389 per door, for 6 Seagate continues its Colorado the 226-unit TwentyOne|01 buying spree with the $46.6 million apartment community at purchase of One Belmar Place 2010 Market St. As part of the same transaction, Simpson also paid $62 million, or $378,048.78 Stabilized per unit, for the 164-unit Bat- tery on Blake Street build- 14 A medical office building in ing, which incorporates the Louisville trades for $5.8 million former Piggly Wiggly warehouse at 22nd and Market streets into the rental community. The seller was the Phoenix- Shown is the TwentyOne|01, one of the two properties recently purchased by Simpson Housing. based Alliance Residential Group. our excellence in customer es within walking distance,” sale, expects that Simpson It bought and developed service to our residents,” said O’Connell said. will spend about $10,000 per TwentyOne|01 in 2008 and Sharon O’Connell, a senior “We look forward to con- unit on the building, basically developed what it had called regional vice president at the tributing to and being part of a block from Coors Field. the Broadstone on Blake Simpson Property Group. the Ballpark neighborhood,” “What is interesting is that Street in 2015. “At TwentyOne|01 and she added. the Piggly Wiggly site is a That building includes a The Battery on Blake Street, Simpson already has started true value-add property and bowling alley. residents can experience upgrading TwentyOne|01. the other one is a brand-new, Second course “We are excited about our extraordinary living, while Terrance Hunt, part of the turnkey development,” Hunt 15 expansion in the Denver mar- having an array of conve- ARA Newmark team that The new owner of the only turnkey ket and are eager to extend niences and urban experienc- represented Alliance in the Please see Simpson, Page 12 restaurant building on Fort Collins’ Harmony Road corridor knows the property well Swiss investment manager acquires site Fastened up by Jill Jamieson-Nichols 2015, almost half of its investment, Partners Group as the high quality of life the A global investment man- ments on behalf of interna- employed approximately 150 state offers to our employ- 20 HFF secures $39.45 million ager that announced earlier tional clients were made in people in the Americas and ees,” David Layton, partner in construction and preferred equity this year it would build a North America. said, given the pace of growth and co-head of private equity, of its North American busi- who will relocate from New financing for an apartment North American headquar- In March, it said it would ness, it expected to broaden York to lead the Americas community in Brighton ters in Denver acquired 25.12 build a headquarters in the its U.S. team, with the Colo- headquarters, said back in acres in Interlocken Advanced Denver area to support con- rado campus serving as its March. Technology Environment, tinued growth of its Ameri- main base for that expansion. “Denver is one of the according to public records. cas operations. The “purpose-built” campus, Partners Partners Group will main- fastest-growing cities in the The buyer, Partners Group tain significant offices in New U.S., with a highly educated CONTENTS Colorado Propco LLC, lists Group said, will be capable of accommodating several hun- York, Houston and Sao Paulo, workforce, and it is becoming Metro Denver 4 Colorado Springs 17 the same address as the Den- but said once the Colorado a magnet for talented pro- Multifamily 6 Law & Accounting 18 ver office of Partners Group, a dred employees over time, with the first phase to be com- campus is complete, it will fessionals who are seeking Retail 8 Finance 20 Switzerland-based company pleted in 2018. gradually relocate its San dynamic careers outside of Industrial 10 CDE 22 with locations around the Francisco operations here. the typical financial centers. world. It paid $7.11 million “Our intention is to build a Office 13 EDC 31 hub for our Americas activi- “With clients and invest- In Colorado, we will create Boulder County 14 Profile 32 for the land at 1200 Eldorado ments located across the U.S., a unique campus culture at Blvd., according to Broom- ties in the same way that our Larimer & Weld Counties 15 Who’s News 32 headquarters in Zug, Switzer- we chose Colorado because the heart of our Americas field County records. of its central location, as well business.”s A Partners Group spokes- land, and our Singapore office woman said the company serve as hubs for Partners In this issue… wasn’t commenting on the Group in Europe and Asia,” acquisition. The seller was Dr. Charles Dallara, partner CC Interlocken Inc., an affili- and chairman of the Ameri- ate of Miami-based Courte- cas, said in a March 15 press lis Co., which didn’t return a release. “We will invest a sig- phone call. Newmark Grubb nificant amount of time and Knight Frank Executive Man- resources into building our aging Director David Hart, Colorado campus, which is a who handled the transaction, reflection of our commitment declined comment. to the Americas. We believe Site secured Partners Group has more Colorado is a great fit for Part- than $50 billion in investment ners Group and are excited to Edgemark Development LLC recently acquired a high-profile programs under management be able to offer our employees site in Glendale to develop its second self-storage project and in private equity, real estate, the option of working there.” a retail pad. (See story on Page 4) infrastructure and debt. In At the time of the announce- Page 2 — COLORADO REAL ESTATE JOURNAL — August 3-August 16, 2016 August 3-August 16, 2016 — COLORADO REAL ESTATE JOURNAL — Page 3 Page 4 — COLORADO REAL ESTATE JOURNAL — August 3-August 16, 2016 Metro Denver Edgemark plans self-storage, retail for busy Glendale corner by Jill Jamieson-Nichols mendous improvement” for part of how we live. We believe provide that amenity in a conve- first, which is located at East A long-vacant restaurant the highly trafficked corner the residents of Glendale and nient location,” said McNealy. Hampden Avenue and South building on a prominent corner of South Leetsdale Drive and Cherry Creek need more stor- The building will be Edge- Yosemite Street in Denver. The in Glendale will be demolished South Birch Street, said Brad age options and feel this loca- mark’s second self-storage facil- to make way for new develop- McNealy, Edgemark Devel- tion presents an opportunity to ity and will be similar to its Please see Edgemark, Page 12 ment. opment managing principal. Edgemark Development LLC Edgemark Self Storage will will develop a 4-story, climate- comprise just over 700 units. controlled self-storage facil- “We feel self-storage is an ity and 32,000-square-foot retail amenity that every commu- pad on 2.5 acres at 320 S. Birch nity should make available St. The development also will to its residents. As lifestyles house a 29-space parking lot. change, self-storage has The project will be a “tre- become more of an integral Highlights

HomeAdvisor to move thrilled to be laying roots to ‘Hub’ in River North in the up-and-coming RiNo district,” said Chris Terrill, HomeAdvisor will relocate HomeAdvisor CEO. “Not its headquarters to the Hub only does the area embody at 3601 Walnut St. in Den- the enterprising spirit long ver’s River North area. celebrated within HomeAd- The Golden-based compa- visor, but it’s also undergoing ny will move approximate- a revitalization that offers an ly 300 employees to 58,000 active cultural scene along square feet of office space in with convenient public tran- the building in early 2018. sit and walkability.” HUB Development LLC is The Colorado Economic developing the mixed-use Development Commission building, which also will approved job growth incen- include retail space and a tive tax credits for the com- hotel. pany of up to $14 million The Hub will be located over the next eight years across from the 38th and based on employee growth Blake commuter rail station. in Colorado. HomeAdvisor “As the largest digital currently employs more than company in Colorado, we’re 1,200 people in the state.s The 320 S. Birch St. mixed-use development will include a self-storage facility, retail pad and parking.

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CREJ CONFERENCE SERIES: Jon Stern x101 [email protected] In the construction industry, it’s par for the course to move mountains – sometimes literally. Whether PRINT & ONLINE ADVERTISING: Lori Golightly x102 [email protected] your challenge is construction financing, permitting, engineering procurement contracts, or solving CUSTOMER SERVICE: Jolene Wollett x100 [email protected] disputes through litigation, mediation, or arbitration, our construction attorneys can support your Periodicals Postage Paid at Denver, CO project needs from simple to highly complex – and everything in between. POSTMASTER: Send address changes to Colorado Real Estate Journal, 1600 Stout Street, Suite 1330, Denver, CO 80202. All rights reserved. No part of this publication may be stored, reproduced, or transmitted in any form or by any means without the publisher’s prior written permission. Contact: Liz Sharrer, Chair All contributed articles published in the Colorado Real Estate Journal represent solely the individual 303.295.8000 [email protected] opinions of the writers, and not those of the Colorado Real Estate Journal. 555 17th Street, Suite 3200, Denver, CO 80202 www.hollandhart.com REPORT AN ERROR IMMEDIATELY (ISSN 1060-4383) Vol. 25 No. 15 August 3-August 16, 2016 — COLORADO REAL ESTATE JOURNAL — Page 5 Page 6 — COLORADO REAL ESTATE JOURNAL — August 3-August 16, 2016 Multifamily Seagate pays $47 million for One Belmar Place community by John Rebchook Seagate’s buying spree in the Denver area continues. Seagate Colorado Partners LLC recently paid $46.6 million, or $224,039 per unit, for the 208- unit One Belmar Place apartment community in Lakewood. With this purchase, Seagate now owns more than 1,500 apartment units in the metro area, according to Apartment Insights, the multifamily data- base owned by Cary Bruteig, the principal of Apartment Apprais- ers & Consultants. Seagate, which is based in Northern California, but has a Denver office, has an even bigger presence in Colorado Springs. Seagate recently bought One Belmar Place. Seagate owns eight apartment communities in Colorado Springs with a total of 1,925 units, according to the website of the privately held company. As part of the purchase, Seagate executed a $35.7 million note with CBRE Capital Mar- kets, according to public records. The seller, Cornerstone Real Estate Advisors, based in Santa Monica, California, paid $34.8 million, or $167,308 per unit, for the community at 770 S. Vance St. in October 2012, according to public records Cornerstone also had invested $1.9 million into improving most of the units in the property before selling it. Upgrades included new granite countertops, cabinets, stainless steel appliances, vinyl wood-plank flooring, ceiling fans in some of the units, full- size washers and dryers, and walk-in closets. Because most of the units recently had been renovated, it wasn’t a true value-add community, said Pam Koster, who marketed and sold the property on behalf of Cornerstone with her partner at Moran and Co., David Martin. Value-add properties tend to be the most sought after, as investors typically can get a much higher return from the money invested in the upgrades than in the overall purchase of the property. “There still are some value- add components to One Belmar Place,” Koster said. “While most of the bedrooms and kitchens have been upgrad- ed, they can probably do some selected improvements to the clubhouse and I think the façade could be made to feel a little more modern,” she said. With its latest purchase, Seagate has invested more than $91 million in Lakewood. In 2013, it paid $40.55 million for the 318-unit Belmar Village at 700 S. Reed St., minutes from One Belmar Place. “They understood this submarket really well,” Koster said. “They really aggressively pursued this deal, along with a handful of others. In a lot of ways, they were the perfect buyer for One Belmar Place.” There was a lot of interest from prospective buyers, according to Koster. “What is really appealing about this is its location,” she said. While not officially in Belmar,

Please see Multifamily, Page 12 August 3-August 16, 2016 — COLORADO REAL ESTATE JOURNAL — Page 7

Page 8 — COLORADO REAL ESTATE JOURNAL — August 3-August 16, 2016 Retail Paid parking coming soon to Cherry Creek Shopping Center by John Rebchook With 16 million annual visitors, the Cherry Creek Shopping Center is one of the most popular attractions in the Denver area. Starting in January, though, the shoppers will be paying for something, which until now has been free: parking. The first hour of parking will be free and the second hour will cost $3. Customers will pay a maximum of $16 per day at the mall at 3000 E. First Ave. In late July, officials announced they will be installing a state-of- the-art “Smart Parking” system to ensure shoppers and diners Cherry Creek Shopping Center will begin charging for parking in have easy, accessible parking at January. all times. As part of the program, all numerous conveniences to shop- tion technology, customers can parking decks and surface lots pers. quickly locate their parked vehi- will be transitioned to a paid At each parking entry point, cle by accessing kiosks stationed parking system next year. customers instantly will know at various mall pedestrian exits. The majority of the work is space availability within the Nick LeMasters, general man- expected to be completed by decks and surface lots through ager for Cherry Creek Shopping year-end, with the new parking digital signage, and they will be Center, said available parking at rates going into effect in January. directed to the most convenient the center has become a concern The innovative, high-tech spots. parking system will provide In addition to the space loca- Please see Cherry Creek, Page 10

The first Eddie Merlot’s in the Denver area recently sold. Baceline sells Eddie Merlot’s 10,749-square-foot restaurant by John Rebchook Baceline’s managing partner. familiar with the site and the Universal Protection Service provides the best security Eddie Merlot’s Prime Aged “During the 24-month period area,” Hashimoto said. that Baceline owned and man- The restaurant is close to a solutions, personalized customer service and unmatched Beef and Seafood restaurant, as aged the property, it generated light-rail station, Interstate 25, its name indicates, is known for value available. We now also offer our clients Safety Act positive income, and 16.2 per- the Shops at Vallagio, and the its beef and seafood, as well as protection from the Department of Homeland Security. cent annual net return for our Inverness Hotel and Conference Universal offers an expansive range of security solutions, its fine wines. investors upon sale,” Puchi said. Center, he noted. consultations and investigations for properties of The 10,749-square-foot restau- There was a lot of interest in The trust beat out a number of every type, including: rant on a 1.26-acre site at 10110 E. the property, which is the first other prospective buyers. Dry Creek Road in Englewood Airports Eddie Merlot’s in Colorado, “It was primarily private equi- also turned out to be an excellent Hashimoto said. ty investors interested in it, but Corporate Campuses investment for Denver-based “It was national in scope,” as we also received interest from a Distribution/Manufacturing Baceline Investments LLC. far as prospective buyers inter- few large, private REITs,” Hashi- Facilities Baceline, with the help of the ested in buying the property, he moto said. Government Facilities brokerage team of Riki Hashi- said. As one would expect for a Healthcare Facilities moto and Dan Grooters of the Most of the would-be buyers property that only recently Office Buildings Denver office of Newmark were in 1031 exchanges, includ- opened, it was not a value-add Grubb Knight Frank, recently ing the buyer. Records show that deal. Petrochemical Facilities sold the property for $5.7 mil- Residential Communities it was purchased by the Unrich “All of the operating expenses lion. Family Trust in Castle Rock. are included in the lease,” Hashi- Retail Centers The sales price equates to “We had a lot of interest from moto said. Educational Facilities $530.26 per sf. buyers all across the country, “This was really a coupon-clip- Baceline acquired the dirt for but it ended up being a local per type of a deal,” Hashimoto For more information call $1.04 million in July 2014. buyer that ended up acquiring said Lorie Libby at 303-901-9037 Baceline then developed the it,” Hashimoto said. He said Eddie Merlot’s is a building with the tenant in place. “The buyer really understood new concept in the metro area. www.universalpro.com “This property added sig- the south suburban metro mar- It also has restaurants in Illinois, nificant value to our Debt Free ket,” he said. Indiana, Kentucky, Michigan, Income Fund,” said David Puchi, “Being local, they were really Ohio and Pennsylvania.s August 3-August 16, 2016 — COLORADO REAL ESTATE JOURNAL — Page 9 Page 10 — COLORADO REAL ESTATE JOURNAL — August 3-August 16, 2016 Industrial Metal recycler picks up site where O’Mearas sold trucks by Jill Jamieson-Nichols landlord, The Realty Associ- ates Fund X LP. The O’Meara family, which has been in the automotive • A 19,320-sf lease at 11440 E. sales business in Denver for 56th Ave., Unit 125, in Denver. NAI Shames Makovsky’s Paul more than a century, sold an Kahn Drew Hill industrial property where it and represented the tenant, American once operated a Ford truck Retail Supply Corp. Collliers dealership. International The family sold the represented the 24,170-square-foot truck main- landlord. tenance facility at 5025 Vasquez n JCPenney’s Blvd. to Denver Metal Recy- former auto cling for $3.3 million. The service center at 14100 E. Alam- property previously was leased eda Ave., in the Town Center at to Rush Enterprises, which Aurora, sold for $600,000. The property at 5025 Vasquez Blvd. at one time housed an O’Meara Ford truck dealership. Aurora Federal Credit Union bought the O’Mearas’ truck dealerships a decade ago. Rush purchased the 17,908-sf build- relocated to a new facility ear- fulfillment center, recently $1.4 million for a multiten- sented the seller. ing and will transform it into a lier this year. purchased the manufacturing ant industrial building at 1900 • RMIP Western Fund LLC’s credit union. Located on 5.6 acres with building it occupies at 4825 S. Quince St. in Denver. The acquisition of 1011 S. Huron Paul Kluck and Monica fenced outside storage, the Nome St. in Denver for $3.38 16,800-sf property consists of St. in Denver for $1.85 million. Wiley of CBRE represented the property was a rare find for million. eight units, one of which is The building totals 15,163 sf. credit union. Chris Cook of Denver Metal Recycling. Indus- The Realty Associates vacant. Todd Snyder of NAI Shames SullivanHayes Brokerage rep- trial properties of that size with Fund X LP planned to list the H.W. Hammond Co. was the Makovsky represented the resented JCPenney. outside storage are very scarce, 50,835-square-foot building for seller. seller, GSP Holdings LLC. n particularly in Denver’s central sale, but decided to negotiate Paul Kluck of CBRE repre- • Adams Rental Inc.’s pur- Ellsworth Adhesives, a industrial submarket. with the tenant prior to doing sented the buyer. Michael chase of 4500 S. Federal Blvd. chemical distributor, signed But Paul Kluck of CBRE Inc., so, according to Paul Kluck of Bloom of Michael Bloom Real- in Sheridan. The 8,846-sf build- a long-term lease for 9,970 sf who represented the O’Mearas CBRE, who represented West- ty represented the seller. ing sold for $675,000. Sandy of industrial space at 7367 S. with CBRE’s Mike Camp, said ern Innovations in the deal. Feld, Paul Kahn and Drew Revere Parkway in Centennial. it was also a rare treat to be able The building is located in n NAI Shames Makovsky Hill represented the buyer. Win The relocation will give the to work with a legacy Denver Montbello Industrial Park. recently reported the following King of King Commercial Real company about twice the space family to sell what represented Tom Stahl of Colliers Inter- industrial transactions, which Estate represented the sellers, it currently occupies in two the last of its Ford truck sales national represented the seller. closed earlier this year: Robert and Betty Kerbs. nearby buildings, according to business. The family continues Rick McMann of U.S. Bank • Albrook Partners’ $3.25 • Dalcart & Associates Ron Webert of Lee & Associ- to operate the O’Meara Ford arranged a U.S. Small Busi- million acquisition of a 53,399- Inc.’s 22,140-sf lease at 4850- ates, who represented the ten- auto dealership in Northglenn. ness Administration loan for sf building at 4653 Table Moun- 4860 Nome St. in Denver. ant in the transaction. the buyer. tain Drive in Golden. BRE West Pete Wycoff of NAI Shames Cody Sheesley of Colliers Other News Mixed Asset Owner LLC sold Makovsky represented the International represented the n Emerald Isle Properties, the property. Matt Emmons of tenant. Alex Brand of Colliers landlord, First Industrial Real- n Western Innovations, a led by a local investor, paid NAI Shames Makovsky repre- International represented the ty Trust.s Trammell Crow clears way for SPI window company by Jill Jamieson-Nichols third-largest private timberland comb. Colorado Business Bank Trammell Crow Co. has owner and lumber producer in provided financing for the proj- added Sierra Pacific Industries the United States. Its window ect. to the growing list of companies company, Sierra Pacific Win- Newmark Grubb Knight at Crossroads Commerce Park. dows, will occupy about 20,000 Frank brokers Mike Wafer, Tim The company will own a sf in the building and offer the D’Angelo and Mike Wafer Jr. 52,800-square-foot build-to-suit remainder of the space for lease. represented Trammell Crow in building at the northwest cor- The deal represents a reloca- the transaction and will handle ner of 52nd Avenue and Wash- tion and expansion for Sierra leasing of Sierra Pacific’s excess ington Street in Adams County. Pacific Windows, which has space to tenants in the 10,000- to The building is scheduled for operated in Denver since 1998. 15,000-sf size range. delivery early next year. “Sierra Pacific brings a best- “We think there is a market “SPI is excited to relocate in-class operation with a prov- for new, modern product in the our Denver area operations to en track record to Crossroads,” smaller sizes that no one else said Ann Sperling, senior direc- can offer right now,” said Wafer. Crossroads Commerce Park Sierra Pacific Industries will own a new building at Crossroads Commerce tor with Trammell Crow’s Den- The front-park, rear-load as we believe this will be a Park. first-class development that ver Business Unit. “They will building will offer office/ware- will enhance our Colorado be a phenomenal addition to house space with 24-foot ceiling operations,” Mark Pawlicki, our park and a great building clearance. Additional space remains avail- Among other companies in SPI director of corporate affairs, owner.” Crossroads Commerce Park able for lease, and up to five the park are American Tire Dis- said in an announcement. Murray & Stafford is the con- has approximately 788,000 sf additional build-to-suit build- tributors, Lennox Industries, Northern California-based tractor for the building, which in five buildings either com- ings can be constructed for sale gloProfessional and Empire Sierra Pacific Industries is the was designed by Ware Mal- pleted or under construction. or lease. Staple.s Cherry Creek Continued from Page 8 According to the Internation- will be enhanced, he said. spend considerable time in the Cherry Creek Shopping Cen- al Parking Institute, innovative Cherry Creek also will benefit mall, he noted. ter is also exploring opportuni- for customers. technologies to improve parking internally. Speaking of the movie theater, ties to help reduce traffic conges- “The Cherry Creek neighbor- access control is an emerging For example, LeMasters said he said that it will validate park- tion around the center through hood continues to experience trend in the U.S. they have no idea of the historic ing tickets for those catching a the use of alternative transporta- dynamic growth to the point LeMasters said he would occupancy and turnover rate in flick. tion choices. where parking spots are cov- expect there may be some initial the garages. Other retailers can contact Cherry Creek Shopping Cen- eted,” LeMasters said. “push-back” from some custom- “We have had no way of mea- LeMasters’ office to learn how to ter’s parking rates will be among “The result is that the center’s ers who are accustomed to free suring those types of things,” validate parking for customers. the lowest in the surrounding lots are heavily used by custom- parking. LeMasters said. “Now, we will.” Charging for parking is a area. ers, but also by those not shop- The mall was opened in 1990 They also can’t track how long growing trend of urban and Parking will be complimentary ping at the center,” he said. by Bloomfield Hills, Michigan- a typical shopper spends in the urban-style shopping centers, he and fees will be waived during “Our top priority is to make based Taubman. mall. said. community events, including sure our customers have the best However, he said he thinks LeMasters thinks it is all over Suburban shopping centers, the Cherry Creek Fresh Markets, possible experience when they most people will soon appreci- the map. typically with more land avail- Cherry Creek Arts Festival and visit,” LeMasters continued. ate that parking and exiting the Some people are shopping for able, almost always still provide Cherry Creek Sneak. “This includes having easy garages will be less of a hassle, a specific item and want to get in free parking. All Cherry Creek Shopping access to parking and entrance with all of the features of the and out very quickly. Some of the nation’s largest Center employees will park for to the mall, so the implemen- new system. Others are coming to the Cher- cities, including Denver, have free. About 3,000 people work tation of this parking program In addition, with many more ry Creek Shopping Center for implemented strategies to help in the 140-plus stores in the became essential,” he said. cameras in the garages, security dinner and a movie and will optimize parking inventory. center.s August 3-August 16, 2016 — COLORADO REAL ESTATE JOURNAL — Page 11 Page 12 — COLORADO REAL ESTATE JOURNAL — August 3-August 16, 2016 Senior Housing Confluent, MorningStar team up on Arvada senior housing by Jill Jamieson-Nichols well as the surrounding natural A senior living community beauty and views.” with 141 “suites” is underway MorningStar of Arvada will include studio, one-bedroom in the city of Arvada. and two-bedroom suites rang- MorningStar Senior Living ing from 340 to more than 1,200 and Confluent Development sf, on 2 stories for assisted living have broken ground on Morn- and 3 stories for independent ingStar Senior Living of Arvada, living. There will be a variety of which will be located at West common areas and courtyards. 64th Avenue and Easley Road. Amenities will include execu- Expected to be completed in tive chef-prepared meals in res- fall 2017, the 160,000-square- taurant-style dining, a pool and foot development will include spa, 24-hour bistro, fitness cen- 71 independent living and 41 ter, theater/chapel, salon, house- assisted living suites, along with keeping and linen service, con- 29 suites devoted to individual- cierge and scheduled transpor- ized care for persons with mem- tation. Personalized assistance ory impairments. with daily living activities will MorningStar of Arvada will include independent living, assisted living and memory care suites. It will be located on 4.5 acres be offered to assisted living resi- surrounded by six parks and dents through 24-hour staffing a senior living developer and president and CEO. MorningStar Senior Living to Arvada Reservoir. and full-time licensed nurses. operator, and Confluent Devel- “We’re excited to bring an our community, and we are “Confluent Development “Our homes are acclaimed opment, a development and offering to Arvada seniors and excited to have this state-of-the- and MorningStar Senior Living for their graciously appointed investment firm. The Denver- their families unlike anything art facility available for our citi- selected Arvada based on our spaces that foster community, based firms have developed else in the area,” added Matt zens,” he said. “It is important team’s desire to build a senior where residents can thrive spiri- Turner, managing partner for that residents have a full range housing development in an area senior living communities in tually, physically, intellectu- Wheat Ridge, Colorado Springs, MorningStar. “MorningStar of housing options, and our City that allows its residents to con- ally and socially,” said Ken Jae- of Arvada will be an artfully Fort Collins and Albuquerque, Council recognized that Morn- tinue to be a part of the com- ger, MorningStar founder and designed community incorpo- munity where they have lived, CEO. “With this new Morning- New Mexico. rating the latest technology and ingStar Senior Living provides worked and raised families,” Star community, residents can “With Arvada’s continued boasting beautiful grounds and an important option for our said John Reinsma, vice presi- remain in their familiar Arvada growth, developing a senior liv- amenities, all in a convenient seniors..” dent of real estate for Confluent neighborhood, close to family ing center with first-class ameni- location on 64th Avenue.” Denver-based Rosemann & Development. “The specific site and friends.” ties and resort-style living was a Arvada Mayor Marc Williams Associates is the architect for the was selected based on its acces- The project is the sixth joint natural next step for our teams’ said the city is looking forward development, and Thoma-Holec sibility and proximity for the venture between affiliates of partnership,” said Marshall Bur- to the facility’s grand opening. Design of Phoenix is the interior residents and their families, as MorningStar Senior Living, ton, Confluent Development “Arvada is pleased to welcome designer.s Simpson Continued from Page 1 • An executive conference communities are in the Ballpark cost. TwentyOne|01 and The Bat- room with full audiovisual neighborhood, given their prox- But that is a moving target. tery on Blake Street are the 12th said. capabilities; imity to Coors Field, Hunt said “Construction costs keep esca- and 13th apartment communi- A number of potential buyers • Sports lounge with billiards he thinks they are really in the lating,” Hunt said. ties Simpson owns in the metro wanted to buy each of them, but and multiple TVs; heart of LoDo. “And when you look at the area. Alliance wanted to sell them as • Dry cleaner on site; “If you look between 22nd price of ground on Blake Street, Other local properties include a package. • Bowling alley with the clas- and Speer, other than something that (value) is something which Carriage Place, The Sanctuary at “That made it a little more sic 10-pin game; and like the mixed-use Sugar Build- is really hard to quantify” given Tallyn’s Reach, Coyote Ranch, challenging,” Hunt said, as • A rooftop deck with lounge ing and the 16M building, there there is so little supply, he said. Highland Crossing and High- there are some potential buy- seating with premium views of is not a lot of rental housing The Battery on Blake Street is land Square, Jefferson Square, ers who only acquire value-add Coors Field. available,” he said. a 6-story building at 2120 Blake The Meadows at Meridian, properties and others that only Value-add properties are the “There really is no other con- St. Madison Park, Hartley Flats, buy brand-new buildings. most sought after in the market, centration of multifamily on the Amenities at The Battery on Studio LoHi and The Boulevard. “Alliance operated both because the rate of return from major streets of Blake, Market Blake include: This fall, Simpson Housing buildings independently of each the improvements typically and Larimer.” • A strength and cardio fitness will open the SkyHouse Denver other,” Hunt said. greatly exceeds the return from The TwentyOne|01 building center; high-rise at the upper end of Simpson, however, can the purchase price. provides exposed brick walls • Wi-Fi internet lounge and downtown Denver. achieve economies of scale by Despite the challenges, given and wood floors, he noted. business center; TwentyOne|01 monthly rents operating together, creating a the communities are so differ- “It really is true loft living,” • Two interior courtyards; start at $1,250 for a studio; $1,450 critical mass of 390 units. ent, Simpson faced a lot of com- Hunt said. “You really can’t find • Resort-style pool, grilling for a one-bedroom and $2,500 If you look it at that way, then petitors. these kinds of loft rental units, station and outdoor seating; and for a two-bedroom. The Battery 58 percent of them are value- “We probably gave 30 tours” unless you are renting a loft unit • Controlled access parking on Blake Street prices start at add units, he noted. during the sales process, Hunt from a private owner.” garage. $1,425 for a studio, $1,725 for a Residents at both communi- said. He said Simpson probably The neighborhood has a walk one-bedroom and $2,300 for a ties, for example, can share: While many will say these paid slightly above replacement score of 91. two-bedroom.s Multifamily Edgemark Continued from Page 6 One Belmar Place. Other News Continued from Page 4 early May. “They love the West side,” n An unidentified buyer The company also is mar- residents get all the advantages she said. “It’s close to down- product is meant to blend keting the retail site, which of its retailers, the movie theater town, but has easy access to the paid $1.93 million for a 15-unit in with its surroundings, could house about 2,000 sf and restaurants, she said. mountains. And renters don’t apartment built in 1962 at 1415 using earth tones, and will with a drive-thru or 3,000 sf “They don’t pay HOA fees to pay downtown prices. There Cook St. near City Park. Jeff Johnson Matt Rit- include high-quality interior without. Edgemark would Belmar, but it is literally across also are barriers to entry, so and ter, lighting, advanced security, entertain a ground lease, the street,” Koster said. “It’s a they don’t have to worry about with the Johnson Ritter Wi-Fi and a conference room build-to-suit or pad sale, very walkable area. Walkabil- competing with a lot of new Team at Pinnacle Real Estate where people can work on but has developed numer- ity is very important for both product.” Advisors, assisted both the investors and people who live documents they keep stored ous retail projects and could Following the purchase, buyer and the seller in the in the facility, for instance. in the communities.” develop a retail building Seagate hired Griffis/Blessing transaction. “We’re all about the cus- Koster said the Denver area itself. to manage One Belmar Place. “The seller … had accrued tomer experience and mak- market remains extremely pop- “We are thrilled to manage The site is suitable for mul- a significant amount of equity ing it as convenient for our ular with investors, despite the an eighth community along the tiple uses, including a bank throughout his years of owner- customers as we possibly rapidly rising prices of institu- Front Range for Seagate Colo- or credit union, quick-serve can,” said McNealy. tional-quality apartment com- rado Partners,” according to Pat ship,” Johnson said. restaurant or any number of Edgemark Development munities. Stanforth, a senior vice presi- “By trading into a larger others, said McNealy. recently broke ground for But buyers won’t buy just dent of Multifamily Services for property, our client was able the development and is Edgemark Development anything. Griffis/Blessing. to dramatically increase his demolishing the existing acquired the site for $3.7 “They all want their invest- “This assignment allows us return on equity, increase his building. It expects to open million, according to public s ments to have good story,” to continue to demonstrate our monthly cash flow, and avoid Edgemark Self Storage by records. Koster said. management experience and looming capital improvement That was certainly true with effectiveness,” Stanforth said. expenses,” Johnson said.s August 3-August 16, 2016 — COLORADO REAL ESTATE JOURNAL — Page 13 Office URG, Stars buy 2301 Blake & parking lots with possibilities by Jill Jamieson-Nichols plete our second investment in A historic building located Denver, in a location we believe where Lower Downtown Den- has room to further consolidate in the future,” said Oscar Boet- ver meets River North sold tiger, head of real estate invest- for $21.2 million, according to ments at Stars. “Denver is a Denver County records. relevant market in our invest- Urban Renaissance Group ment strategy as its real estate and Stars Investments bought market continues to strengthen 2301 Blake St., a 52,859-square- into a vibrant and amenity rich foot office/retail building, city.” along with two parking lots With “two strong tenants and with potential for develop- the potential for some devel- ment. opment down the road,” 2301 “We’re thrilled to add this Blake drew interest from in- beautiful historic building and out-of-state investors, pri- to our growing local portfo- vate and institutional, accord- lio,” URG founder and Chief ing to R.C. Myles of Cushman Executive Officer Patrick Calla- & Wakefield, who represented han said in an announcement. seller Oakwood Real Estate “RiNo has experienced an Partners with Cushman & incredible recent transforma- Wakefield’s James Brady. tion, and we look forward to “It was a very broad range of continuing work in this thriv- interest. I think that’s an indi- ing city as an owner and devel- cator of the location, by Coors oper.” Field and proximate to RiNo. The popular Blake Street Tav- It’s just in the middle of every- ern occupies 17,902 sf in the thing,” Myles said. 3-story building, which has Spaces, a co-working brand founded in Amsterdam, will open its first Denver location at 2301 Blake St., occu- Listed on the National Reg- pying all of the building’s office space. 34,957 sf of office space that ister of Historic Places, 2301 recently was leased to Spac- Blake originally was a an es. Spaces, Regus’ co-work- office/warehouse for McPhee Portland, Oregon. The com- feet of office space at 1660 Lin- Hasson and Casey Grosscope ing brand, will move into the & McGinnity Co., one of the pany owns and/or operates a coln St., Suite 2800, in Denver. of Newmark Grubb Knight building in October. West’s leading building mate- 10 million-sf office investment Sandy Feld and Trent Rice of Frank represented the land- URG and Stars are exploring rials suppliers, according to and management portfolio. NAI Shames Makovsky rep- lord, Lincoln Station Phase options for the parking lots, History Colorado’s website. Stars Investments is an asset resented the tenant. UPI 1660 One LLC. which could accommodate The brick-faced building was management company that Lincoln LLC is the landlord. commercial and/or residential built in 1913; the existing office manages the financial, private n G27 LLC paid $705,000 for a uses, Callahan said. and retail improvements date equity and real estate invest- n Newfields Mining Design 9,699-sf office property at 25107 The acquisition is the second to 1943 and 1972, respectively. ments of Chilean entrepreneur Technical Services LLC leased Genesee Trail Road in Jefferson in the Denver market for URG The building sold for $10.05 Felipe Ibañez Scott. 10,200 sf of office space at 9400 County. and Stars Investments. They million in March 2015. Station St., Suite 300, in Lone Bill Maher of NAI Shames bought the 121,000-sf Market Urban Renaissance Group Other News Tree. Makovsky represented the Center in LoDo for $29 million acquires, develops and manag- NAI Shames Makovsky bro- buyer. Frank Griffin of New- last September. es properties in Seattle; Bellev- n U.S. Meat Export Federa- ker Bill Maher represented the mark Grubb Knight Frank rep- “We are delighted to com- ue, Washington; Denver; and tion Inc. leased 10,223 square tenant. Jamie Gard, Courtney resented the seller, WAG Inc.s Page 14 — COLORADO REAL ESTATE JOURNAL — August 3-August 16, 2016 Boulder County & U.S. 36 Corridor Louisville medical office building transacts in $5.8M deal by Jill Jamieson-Nichols LLC, accord- “The seller was able to take A multitenant medical office ing to Boul- advantage of excellent market building in Louisville changed der County conditions with the sale while ownership in a $5.8 million records. the buyer purchased a pre- transaction. Brian C. mier stabilized asset in Boulder McCaslin Healthcare Plaza Smith, a County,” said Smith. is a 32,488-square-foot, Class B senior associ- A 2-story building, McCaslin medical office building locat- ate in Marcus Healthcare Plaza consists of 19 ed at 400 S. McCaslin Blvd. It & Millichap’s suites leased to both medical is 91 percent leased to tenants Denver office, and professional tenants. including Boulder Dermatol- Brian C. Smith and associ- Phillip Gause, senior director ogy, Centennial Valley Pediat- ate director with Marcus & Millichap Capi- rics, Colorado Spine & Sport, of the Healthcare Real Estate tal Corp. in Denver, arranged Allergy & Asthma Center of Group and National Office and debt financing for the buyer. Colorado and others. Industrial Properties Group, “This transaction is further McCaslin Healthcare Plaza represented the seller and pro- evidence of the strong lender LLC bought the property from cured the buyer. Both are pri- Louisville Healthcare Plaza consists of 19 suites. Centennial Office Partners vate investors. Please see Louisville, Page 16 Bedford Lodging to bring first dual-brand hotel to Broomfield by Jill Jamieson-Nichols “This dual- Dallas-based Bedford Lodg- branded ing will deliver Broomfield’s property rep- first dual-branded hotel to the resents a new market in summer 2017. trend in hotel The company recently broke development ground on a 4.6-acre site at 455 by the major Zang St., which will house a brands, 212-room Residence Inn and including Fairfield Inn & Suites. The Jeff Blackman Marriott and hotel is Bedford Lodging’s first Hilton,” said property outside of Texas and Blackman. “A dual-brand- the first hotel in Colorado to ed property helps a hotel to combine the two brands. expand the guest profile in Bedford Lodging selected attracting both transient and the site because of the growth extended-stay travelers while occurring along the U.S. High- at the same time capitalize on way 36 corridor and the over- efficiencies with shared com- all health of the Denver area’s mon areas and staff.” lodging market, said Jeff Black- man, founder and president. Please see Broomfield, Page 16 Residence Inn and Fairfield Inn & Suites will come together in a 212-room development in Broomfield. August 3-August 16, 2016 — COLORADO REAL ESTATE JOURNAL — Page 15 Larimer & Weld Counties Developer goes for second course at Sanford’s building by Jill Jamieson-Nichols nity for either a microbrewery or What was a good restaurant one of the distilleries to go into location in Fort Collins more than that location,” he said. a decade ago has only gotten bet- Since HighPoint Services ter, so Rayno Seaser is going for a doesn’t need evening parking, second round. and the cross easement provides Seaser just bought the recent- for a total of 61 spaces, “We think ly vacated Sanford’s Grub & that’s a plus for us,” Seaser said. Pub restaurant building at 1526 “We’ve had some interest from Oakridge Drive in Fort Collins for a few national tenants that want $1.53 million. Seaser, who devel- to come into the market,” he oped the property with partner added, noting Foothills Mall has Rhys Christensen and later sold attracted new-to-market restau- it, now is looking for another res- rants including Bar Louis and taurant, microbrewery or distill- Grimaldi’s, “but their rents are a ery, while also seeking to broaden little bit higher and their CAM the building’s appeal. charges are considerably higher “It’s near and dear to me since I than what we have to offer.” was the original developer,” Sea- “I think there’s a lot of oppor- ser said. The 6,425-square-foot tunity for them to come into this market and be successful on the The new owner said the building at 1526 Oakridge, as depicted in a new rendering, holds lots of possibilities. building sits on the busy Har- It is the only turnkey restaurant building available on the Harmony Road corridor. mony Road corridor. Harmony corridor.” Seaser and Christensen devel- The building has a fully oped the property in 2002. Chris- equipped kitchen and “fabulous” tensen built the Sanford’s build- enclosed patio. “I think we’re ing, originally a Boston Pizza, below the market for the Harmo- and Seaser developed a Mulli- ny corridor, and we’re the only McWhinney signs first tenant gans Food & Ale (now HighPoint turnkey restaurant space on the Services) just to the east. They Harmony corridor,” Seaser com- included a cross easement so the mented. at Hahns Peak Two building Nevertheless, Seaser also plans restaurants could share parking. four to 25 employees in three Centerra and the first specula- Seaser and his wife, Patty, who to seek approval for a drive-thru by Jill Jamieson-Nichols years, expects to move into the tive office building to be built co-founded the Egg & I, looked a so the building could be leased to An engineering and design building this fall. year ago at moving their restau- a bank or dry cleaner, for instance. firm will triple its space in in Northern Colorado since rant on Oakridge Drive into the Christensen’s son, Chase Chris- Loveland, becoming the first “Our growth is indicative the recession. Core and shell Sanford’s building, but decided tensen, a broker with Cushman tenant in the new Hahns Peak of Olsson’s commitment to construction recently was not to relocate. “When the REIT & Wakefield, is marketing the Two office building. Colorado,” Kris Pickett, the completed, and tenant finish that owned Sanford’s realized building with Aki Palmer, also of Olsson Associates, cur- company’s Northern Colora- is underway. they were struggling, they called Cushman & Wakefield. rently in approximately 3,000 do office leader, said in a state- The building offers one of us, and we saw some opportu- Palmer, along with Cushman square feet at Centerra, will ment. “Given the range of ser- the most walkable locations nity there,” Seaser said. With & Wakefield brokers Jim Palmer occupy 8,976 sf on the second vices we provide, we expect in Northern Colorado, with Northern Colorado becoming and Jared Goodman, represented floor of the building at 1880 the growth to continue.” more than 15 restaurants and an epicenter of microbreweries the seller, Spirit Master Funding Fall River Drive. The com- Hahns Peak Two is a 56,000- and distilleries, “We thought that III LLC, in the sale of the building pany, which has grown from sf Class A office building in Please see McWhinney, Page 16 would be a wonderful opportu- to Seaser.s Page 16 — COLORADO REAL ESTATE JOURNAL — August 3-August 16, 2016 Louisville Continued from Page 14 occupancy close to 80 percent. ing space we’re delivering to “With easy access to bike people who want to live and appetite for well-leased, high- trails, transportation systems work here.” quality medical office assets and a station for the popular In addition to sustainability along the Front Range,” Gause B-cycle program on site, Apex features including low-flow said. “We were very pleased to 5510 provides a great place toilets and eco-sensitive land- be able to assist with this oppor- to live in an environmentally scaping, Apex 5510 offers a tunity and are confident it will friendly and thoughtful com- 1,600-square-foot fitness cen- prove to be a strong addition to munity,” said Brad Blash, co- ter; a lounge with billiards, our client’s real estate invest- founder and managing part- high-definition smart televi- ment portfolio.” ner of Crossbeam Concierge, which partnered with Tram- sions, a bar for entertaining, Other News mell Crow Residential on the outdoor grilling and indoor/ development. The apartments outdoor fireplace; a resort-style n Apex 5510, the first apart- are located in Gunbarrel. pool featuring a sundeck with ment community in the Boul- “We’re proud of our commit- mountain views; a community der area to achieve LEED Sil- ment to Gunbarrel and to Boul- garden; electric vehicle charg- ver certification, recently cel- der, and that pride is reflected ing stations; dedicated bike ebrated its grand opening with in the type of lifestyle and liv- parking stations; and more.s

Broomfield Continued from Page 14 Other News

The Residence Inn side will ‘A dual-branded n Marty Farms LLLP bought offer full kitchens, generous property helps a two industrial condominiums workspaces and upscale bath- at 7110 W. 117th Ave., Units rooms, while the two brands hotel to expand A4 and A5, in Broomfield for will come together with a $420,000. centralized lobby bar, library the guest profile Joseph Balint, who formerly lounge, state-of-the-art theater ran a machine shop on the room, fitness center and swim- in attracting both ming pool. transient and property, sold the 3,000-square- The interior will feature a foot condos, which are leased mountain lodge theme with extended-stay to Accountable Auto Care. natural wood, chiseled lime- Accountable Auto has oper- stone and copper accents. Art travelers while at the ated an auto maintenance and walls will bring the outside in same time capitalize repair shop at the property through abstract portrayals of for more than 10 years and is the surrounding landscape. on efficiencies with expected to continue as a ten- Aimbridge Hospitality will ant, according to Doug Kaste manage the hotel. shared common of Pinnacle Real Estate Advi- Blackman founded Bedford sors LLC, Lodging in 2013. He has more areas and staff.’ who represented the than 20 years of expertise in seller. the hotel business, having been – Jeff Blackman, Larry Cornell and Pete affiliated with more than 150 Bedford Lodging Gunderson of Phill Foster and properties. Co. represented the buyer.s

Core and shell construction of Hahns Peak Two recently was completed. McWhinney Continued from Page 15 of open space. Two is the only building that “Olsson Associates is an can accommodate users up 500,000 sf of retail space across exceptional group. We are to approximately 50,000 sf. A the street, said Ron Kuehl of pleased to see them expand number of companies have Realtec-Loveland, who part- their footprint at Centerra,” looked at the building, and, nered with Centerra devel- said Ashley Stiles, McWhinney “What we’re finding is that oper McWhinney to market vice president of development. they are companies needing to the building. It also has access According to Kuehl, office expand in Northern Colorado, to Centerra’s trail system, the vacancy rates in Northern Col- and there are very few options High Plains Environmental orado are under 5 percent, a in the marketplace, especially Center and more than 275 acres historic low, and Hahns Peak for large users,” said Kuehl.s August 3-August 16, 2016 — COLORADO REAL ESTATE JOURNAL — Page 17 Colorado Springs/So. Front Range Centre apartment community sells for $15 million by Jennifer Hayes percent – a record low for the 10 increasing, according to Colora- years of surveying the market. do Springs Commercial, a Cush- One of Colorado Springs’ oldest man & Wakefield Alliance’s apartment communities of more In seven of the nine submarkets than 50 units sold in a record- included in the report, vacancy MarketView report. setting deal. decreased or was flat. The largest The second-quarter report also The 168-unit Centre apartment decrease was in the south-cen- noted that the Springs market will community sold for $15 million tral submarket, where vacancy end the year with significant posi- – a price more than double what dropped by 142 bps to 4.65 per- tive absorption, reduced vacancy it traded for in 2014, according to cent – yet the submarket still has rates and a healthy increase in public records – a record price. the highest vacancy in the city. lease rates. “For properties built prior to The report also noted that five The overall vacancy rate for the 1965, it was a record sale price submarkets have vacancy below Class A market ended the second on a price-per-unit and price-per- 4 percent. quarter with an overall vacancy square-foot-basis,” Craig Stack, During the second quarter, rate of 20.08 percent. Colorado The Centre is one of the oldest apartment communities of more than 50 absorption jumped to 247 units Springs Commercial said that senior vice president of Colliers units in all of Colorado Springs. International, said of the deal that – well above the 15 units experi- while there is “plenty of space to enced in the first quarter. lease up” before the market tight- sold at $89,286 per door and $112 market because it’s right in the Brent Hubbell Pinnacle Real of The average rent for the Colo- ens and the prospect of new con- per sf. center of Colorado Springs but Estate Advisors LLC represented rado Springs metro area also rose struction is imminent, the amount Stack and Colliers International also a lot of tenants really like the the seller. Jeff Johnson of the Vice President Bill Morkes han- 1950s-style architecture. It’s got a by $18 to a new record-high rate of of quality office space available Johnson Ritter Team at Pinnacle $911 per unit, or $1.11 per square is quickly diminishing and lease dled the sale of the 1952 commu- boutique, cool feel to it, which is represented the buyer. nity, located at 1921 E. Van Buren proving out in the rents on the foot. The 12-month increase in rates in the higher-quality build- “The buyer expressed a need rent was $2 less than last quar- ings and more desirable areas are St. Centre Colorado Springs LLC renovated units,” he added. for a four-unit deal in Colorado was the buyer. ter’s record annual gain of $64, increasing. At the time of the sale, the Centre Springs. Pinnacle was able to “The seller invested a significant resulting in an annual growth Additionally, the report stated was around 96 percent occupied. identify an off-market opportu- amount of capital in the prop- rate of 7.3 percent, according to that landlords are holding the line Community amenities include nity that benefited both buyer erty,” Stack said of seller Fowler the report, authored by Doug on improvement allowances, no a swimming pool, fitness center, and seller,” stated Hubbell. Carter SVN/Doug Carter LLC Property Acquisitions, which paid barbecue social area, playground, of longer offering an open check- Cary Bruteig Apartment $6.84 million in 2014 for the then- laundry facilities and a location and of book to turnkey improvements. n The stabilized vacancy rate Appraisers & Consultants. Audubon Gardens community. near parks and trails. Apartments Lease rates ended the quarter for the Colorado Springs apart- “They did a full exterior renova- feature a mix of one-, two- and The co-authors noted that this is at $13.48 per sf while there was a ment market decreased a “size- tion, including all new windows, three-bedroom floorplans, some the second-fastest growth rate in negative net absorption of 20,656 and started an interior unit reno- with hardwood floors and updat- able” 56 basis points during the the 10 years they have surveyed sf. vation program that the buyer will second quarter, according to the Springs market, exceeded The firm also noted that Colora- ed appliances. Apartment Insights’ continue. The seller put a lot of recently only by last quarter’s annual do Springs’ medical office market work into the property. Other News released Statistics/Trends Sum- growth of 7.7 percent. posted its sixth consecutive quar- “There were multiple parties mary. Three communities totaling 702 ter of positive leasing absorption, interested in buying the property,” n An unidentified buyer paid The second quarter ended units – all 1970s-vintage construc- bringing the overall vacancy rate continued Stack. “It really is an $290,000, or $72,500 per unit, for with a vacancy rate of 3.97 per- tion – sold during the quarter. to 9.56 percent. The firm antici- unusual property; it’s very low a four-unit apartment property cent, 135 basis points below the pates that rates will gradually density as it sits on over 10 acres. at 1075 Magnolia St. in Colorado year-ago rate of 5.32 percent and n Despite the statistics, which increase, vacancy will decrease Developers today typically try to Springs. below the metro areas to the show a slight increase in the total and leasing velocity will continue maximize density, so it’s nice to Constructed in 1972, the build- north, which exceed 5 percent. market vacancy from the begin- for the foreseeable future. Aver- get a property like that that has a ing is located less than a mile The summary noted that the trail- ning of 2016, Colorado Springs’ age lease rates within the medical nice, parklike feel. south of the University of Colo- ing four-quarter average vacancy office market is experiencing sector ended the quarter at $16.21 “It leases really well in the rado Colorado Springs’ campus. rate decreased by 34 bps to 4.36 robust activity and lease rates are per sf. s Page 18 — COLORADO REAL ESTATE JOURNAL — August 3-August 16, 2016 Law & Accounting experience momentum CRE Commission-approved contracts: Tips & traps – the deed his is the 16th in a series ing survives general warranty deed conveys of 18 articles that come the same.” the property and after-acquired BKD National Construction & Real Estate Group from years of experi- Divining title with the four customary enceT using the Colorado Real what “is warranties of title and the cov- Estate Commission-approved intended” enant to defend title as against prOfessiOnaLs contracts for purchase and sale can be dif- all persons. 160 of real estate for commercial ficult, so General warranty deeds are real estate transactions. the contract most commonly used in resi- Business ebbs and flows.Regulations are constantly evolving, and Previous articles addressed should clear- dential transactions, and farm you can’t afford to just tread water. BKD National Construction & the buyer’s name, the seller, ly state what and ranch transactions, while Real Estate Group’s 160 professionals are at ease in your world, the property, water rights, rights and special warranty deeds are Beat U. Steiner and our advisors can assist with a wide variety of accounting, tax and ordering the title commitment, Partner, Holland & obligations most common in Front Range owner’s extended coverage, are to apply commercial transactions. Bar- consulting issues. We invite you to experience how our expertise Hart LLP, Boulder making title objections, off- after the clos- gain and sale deeds and quit- can help your organization get ahead of the curve. record matters, special taxing ing. claim deeds are used when the districts, ordering and review- As to deed warranties, a quit- seller is not willing to war- Colorado Springs // 719.471.4290 ing the new improvement loca- claim deed conveys the seller’s rant title. Deeds from personal Denver // 303.861.4545 tion certificate or new survey, property without any warran- representatives or trustees, for bkd.com owners’ associations, rights of ties of title. A quitclaim deed example, are generally bargain first refusal, contract approval does not, however, convey and sale deeds. As discussed in and the §13 trap. This article “after-acquired property,” that the sixth article in this series, relates to the transfer of title to is, an interest in real property bargain and sale deeds and the property and, in particular, to which the seller acquires quitclaim deeds also are com- the form of the deed. title after delivering the deed. monly used to convey water Section 13 of the contract Thus, a quitclaim deed is better rights. gives the buyer the oppor- for confirming that the grantor What if the buyer, after tunity to identify what kind has no interest in the property conducting its title and sur- Our national real estate practice of deed it wants the seller to than it is for conveying real vey review, concludes that it is focused on the evolving use to convey the property. property. A bargain and sale should obtain a different type In Colorado, there are essen- deed is the better alternative, of deed than is provided in §13 needs of clients. tially four choices: a quitclaim especially for the grantee, for of the contract? Trap: It is hard deed, a bargain and sale deed, conveying all the interests in to see how requiring a change in We advise on current positions, a special warranty deed and a the property the grantor may the type of deed is, in and of itself, general warranty deed. All of or may not have. A bargain an appropriate title objection. The opportunities, and complex them are sufficient to convey and sale deed also conveys buyer should think carefully transactions in: the property. They differ, how- the property without any war- about what deed it selects in ever, in the kind, of warranties ranties of title, it is generally §13 of the contract. That said, about title that the seller makes believed, but it also conveys a buyer might lodge an objec- • Acquisition to the buyer. any after-acquired property to tion to a title matter that could Before getting into the deed the buyer. Because a quitclaim be cured by the seller’s agree- • Development warranties, however, it is deed and a bargain and sale ment to provide a different • Financing important to remember some- deed contain no warranties of form of deed. And, of course, thing about the relationship of title, they are not favored by if the buyer does not want to • Leasing the contract to the deed. Under buyers in the typical commer- close without a different type Colorado law, everything in cial purchase and sale trans- of deed than the contract speci- the contract “merges” into the action. Special and general fies, and the buyer has a right For more information, please call deed. Thus, after the closing, warranty deeds are the deeds to terminate the contract, the Beverly Quail at 303.292.2400 the seller no longer has any of choice. A special warran- seller might be persuaded to obligations to the buyer under ty deed conveys the property amend the contract to provide the contract. The contract can, with after-acquired property, for the type of deed the buyer however, provide that certain with the four customary war- wants. of its provisions “survive the ranties of title – 1) seisen (i.e., Section 13 presumes that the closing.” As to those provi- possession of the property); 2) seller will convey the prop- sions, the seller’s obligations the right and power to convey; erty “free and clear of all taxes continue. Tip: If the buyer expects 3) freedom from encumbranc- except the general taxes for the Atlanta | Baltimore | Bethesda | Denver | Las Vegas | Los Angeles | New Jersey | Philadelphia the seller to bear any responsibil- es; and 4) quiet and peaceable year of closing.” The title insur- Phoenix | Salt Lake City | San Diego | Washington, DC | Wilmington | www.ballardspahr.com ity under the contract after the possession – and with a cov- ance policy will most likely take closing, the buyer must make sure enant to defend title (see C.R.S. an exception for “real property the contract provides that the obli- § 38 30 113(2)). In the special taxes and assessments for the gation survives the closing or the warranty deed, the warran- year of closing and subsequent obligation is included in the deed ties are limited, however, to years, a lien not yet due or pay- or in another document executed matters arising “by, through or able.” If the buyer is to acquire and delivered at the closing. Sec- under” the seller. If the seller title to the property subject to tion 26 of the contract pro- did not create the title defect, any taxes, the contract must be vides that “Any right or obli- the seller is not liable on the changed to achieve that result. gation in this contract that, by warranty. The most complete Section 13 also presumes that its terms, exists or is intended title protection is given by the Please see Next Page Real to be performed after … clos- general warranty deed. The Estate Attorneys with Real Experience

James L. Kurtz-Phelan - Real Estate Practice Chair 370 17th Street, Suite 4800 | Denver, Colorado 80202 303.825.0800 | bw-legal.com August 3-August 16, 2016 — COLORADO REAL ESTATE JOURNAL — Page 19 Law & Accounting

Continued from Previous Page batim, as exclusions from the seller’s warranties in the deed title to the property will be What makes §13 of conveyance. I am told that conveyed “free and clear of some title insurance companies all liens, including any gov- most insidious prefer this approach over actu- ernmental liens for special is that some ally listing the title exceptions improvements, installed as of contained in the title commit- the date of buyer’s signature title insurance ment in the deed because some hereon, whether assessed or upstart title insurance compa- not.” Thus, if the seller intends companies nies started using the recited to convey the property to the exceptions in recorded deeds buyer subject to any liens, the have adopted as their means of searching contract must be changed to title, rather than fully search- specify the outstanding liens. the practice of ing the grantor/grantee index, The reference to assessments which is prohibitively time- for special improvements is to reciting §§13.1 consuming and expensive, or address the assumed expecta- through 13.5, paying to use one of the pri- tion of the buyer that the pur- vate databases that allows for chase price includes the prop- verbatim, as computer searching of titles by erty as it exists at the time of tracts. Reciting §§13.1 through the contract, and that the buyer exclusions from 13.5 is a terrible practice. It will not have to pay “extra” for can cause future title problems existing improvements by way the seller’s since the title commitment is of an outstanding governmen- not recorded and who knows tal assessment. warranties in what the buyer knew when If a special warranty deed or the deed of it closed. For the seller, it cre- a general warranty deed will ates the possibility of liabil- be used to convey the prop- conveyance. ity under the title warranty erty, the seller will want exist- because, under C.R.S. §38 35 ing matters that affect title to 108, a reference to an unre- the property to be exceptions corded document in a recorded to the warranty of title. Thus, to title, the seller should add it document is not binding on the warranty clause in the (which, of course, means that third parties. Since a title war- deed usually will end with the the title insurance company ranty is binding on successors words, “subject to” and a list may add it to the title commit- and assigns of the grantor and of the exceptions. In a special ment, and the buyer may be runs with the land (see C.R.S. warranty deed, the seller need able to object to it under §8.2 of §38 30 113(3)), future purchas- only list matters that arise “by, the contract). ers can ignore any reference through or under” the seller, In the previous article, we to the contract or to the title but most special warranty discussed how §13 can cause documents as defined in the deeds will list all the excep- problems for the title review contract. Tip: When representing tions that are shown in the and approval process in the the seller or the buyer, provide that title commitment because it is contract. I referred to a num- you, as the seller’s or the buyer’s easier to do that than to think ber of ways in which §13 is counsel, and not the broker or the through which of the excep- “insidious.” What makes §13 title insurance company, will pre- tions are the seller’s respon- most insidious is that some pare the deed. When representing sibility. The seller is making title insurance companies have the buyer, be sure the form of the the warranty, however, so if it adopted the practice of recit- deed is agreed to as part of the title Adding value to the commercial knows of any other exception ing §§13.1 through 13.5, ver- review under the contract.s real estate industry for over 25 years. Tax Planning & Structuring Financial Statement Audits & Reviews Estate & Gift Tax Planning Tax Return Preparation Litigation Support Our Real Estate Group Leasing Serving the Commercial Real Estate Community Real Estate Development

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27492_DEN_RE_v3.indd 1 6/24/2016 6:57:29 PM Page 20 — COLORADO REAL ESTATE JOURNAL — August 3-August 16, 2016 Finance HFF arranges $39.5 million loan for Brighton community by John Rebchook tive banks. There was a lot of interest from ‘There was a lot of “Banks look at their exposure lenders to provide the construc- in submarkets and this particu- tion loan for the 288-unit Ele- interest, however, lar bank had very little exposure ments at Prairie Center apart- in the Brighton area,” Simon ment community in Brighton, the construction loan said. said Josh Simon, a managing market, in general, The average size of a unit at director for the Denver office of Elements at Prairie Center will Holliday Fenoglio Fowler LP. is very challenging be 919 square feet. HFF arranged $39.45 million The community will include in construction and preferred today in the 12 3-story buildings. They are equity financing for the develop- multifamily market.’ being constructed on a 16.56- Shown is a rendering of Elements at Prairie Center. ment of the community, which acre site in the Prairie Center not only is one of the largest in – Josh Simon, master-planned community at Brighton, but also is likely the Holliday Fenoglio Fowler LP Eagle Boulevard and South 27th most energy-efficient. Avenue. The Elements at Prairie Center The Elements at Prairie Center will even boast geothermal heat- is about a mile from Interstate 76 ing and cooling when it opens in after the Great Recession. and Barr Lake State Park. the third quarter of 2017. “It is more of an exposure It will include geothermal HFF placed the loan with a issue than concerns about the heating and cooling systems for large, national bank. perceived risk” of the potential all units. The loan provides $31.55 mil- of overbuilding in certain sub- The geothermal heating and lion for construction and $7.9 markets, he said. other sustainable features don’t million in preferred equity At the same time, the Elements have much impact on getting the financing. at Prairie Center benefitted from construction loan, Simon said. Not that HFF didn’t have chal- its location in Brighton, and not, “However, when it comes time lenges in landing the lender for say, downtown Denver or sur- to take out the construction loan the community, which is being rounding neighborhoods. and replace it with permanent developed by a joint venture of “Definitely, that was an advan- financing, green buildings can Colorado-based C&A Cos. and tage,” Simon said. usually lock in better rates,” Shown is a site plan for Elements at Prairie Center. Delaware-based The Common- “There is very little new devel- Simon said. wealth Group. opment going forward within He noted that both Fannie In most cases, the preferred • 24-hour fitness facilities; “There was a lot of interest, a 7- to 10-mile radius,” Simon Mae and Freddie Mac offer spe- equity investors are paid off • A children’s playground; however, the construction loan said. cial programs for green and sus- when the construction loan is • Dog park; market, in general, is very chal- “There are significant chal- tainable buildings. replaced with permanent financ- • Clubhouse; and lenging today in the multifamily lenges for construction lending, “Also, their utility costs usu- ing or the loan is refinanced, he • Community garden. primarily due to exposure, but ally are quite a bit lower when market,” Simon said. said. The developers of Elements at Banks, he said, are increasing- a lot of that is tied to pockets they have green features like However, the investors typi- Prairie Center are familiar with ly worried about their exposure where there has been a lot of geothermal heating,” Simon to loans made for new apart- new construction,” Simon said. said. cally have the option to stay in the Brighton market. ment communities. “Banks look at their exposure That is a selling point for pro- the deal, if they wish, he added. The community will be 2.5 Apartments, of course, have in certain areas in certain mar- spective tenants, he noted. Amenities at the Elements at miles southeast of Solaire Apart- been the hottest sector for kets,” he said. The preferred equity portion Prairie Center will include: ments, a 252-unit, Class A com- income-producing real estate The Brighton location meant a of the financing arranged by • A resort-style swimming munity completed by the same since the market rebounded “larger audience” from prospec- HFF is typical, he said. pool with cabanas; developer in 2014.s August 3-August 16, 2016 — COLORADO REAL ESTATE JOURNAL — Page 21 Finance Midyear 2016 commercial real estate capital markets update nterest rates are currently the begin- a high point as international at record lows and acqui- ning of this investors are simply more con- sition transaction activity year based fident in the U.S. economy vs. appearsI to be picking up pace on pricing the rest of the world. Although due to a combination of factors. expectations the U.S. national deficit is at an The Brexit disruption in the established all-time high, America is still capital markets recently result- in 2015 have the cleanest and largest dirty ed in record-low Treasury and been dis- shirt in the pile that is paying swap rates as global investors appointed out positive rates. sought a flight to safety. How- with reduced Fixed interest rates with ever, spreads haven’t widened demand as securitized lenders are now in INDUSTRY DIRECTORY out by the same margin. Peter Keepper investors Principal, Essex the low 4 percent range – down The 10-year Treasury reached appeared to Financial Group LLC, around 90 basis points from COMMERCIAL REAL ESTATE a low point of 1.37 percent one Denver be contem- week after the Brexit vote but plating if the their high point of mid-5 per- climbed back to 1.5 percent current cycle cent near the end of the first the following week. The last reached its peak. The increased quarter. The spike in commercial mortgage backed-securities LENDERS time the 10-year Treasury was risks with a substantial slow- less than 1.5 percent was in in down in China, major disrup- interest rates in the first quar- July 2012, but spreads were tion with the oil and gas mar- ter caused acquisition demand wider and fixed rates were kets and the looming potential to fall further. Life insurance FIND FINANCING higher. Spreads have widened for Brexit all seemed to com- and general account lenders as usual during a flight to safe- bine to result in some pause in benefited significantly in the ty, but demand for alternative the first half of the year. first half as CMBS originators Arbor Commercial Grandbridge Real Estate investments such as high-yield What has changed is mainly couldn’t compete on rate or Mortgage, LLC Capital LLC corporate debt has increased, an improved outlook for the certainty of closing. Many have Hunt Mortgage Group resulting in spreads widen- U.S. economy combined with originated over 75 percent of Bank of America Merrill Lynch – Commercial ing by approximately 10 basis a lower cost of capital for com- their mortgage allocation goals JCR Capital points as the 10-year Treasury mercial real estate investment. for the year. Real Estate fell by 40 basis points dur- A week after the Brexit vote, This window of record-low JVSC-CBRE Capital Markets ing the first week of July. The the Labor Department reported rates may be an opportunity Bank of Colorado majority of general account 257,000 jobs were created in for some investors to buy prop- KeyBank N.A., KeyBank Real lenders have established rate June, compared to only 11,000 erties at cap rates that are 50 to Bank of the West Estate Capital floors since the Brexit vote in May. The Dow shed 900 100 basis points above where thinking the record-low Trea- points prior to Brexit and has similar properties were trad- Berkadia Commercial Merchants Mortgage and sury rates that hovered around now recovered to new highs, ing 12 to 18 months ago with Mortgage, LLC Trust Corp. 1.4 percent were an anomaly trading at an average price- a lower cost of capital. It’s a the following week. Low-lever- earnings ratio of 17. Interesting Bloomfield Capital Midland States Bank age loans for 10-year terms can how sentiment can change, but great time to be a borrower at Partners, LLC be obtained in the low 3 per- it’s likely more due to the Unit- this point of the year. Although Montegra Capital Resources, cent range and rates for full ed States being the best interna- refinance activity has been CBRE|Capital Markets Private Lender leverage loans of 65 percent on tional economy for investment very strong in the first half of commercial property are in the considering U.S. corporations the year, acquisition financing Chase Commercial Term Mutual of Omaha Bank mid-3 percent range, which are pay out one out of every three should pick up pace in the Lending 40 to 50 basis points lower than dollars in global dividends second half if national inves- NorthMarq Capital, Inc. a year ago. and the U.S. economy is near tor confidence continues to Citywide Banks Many sellers planning to full employment. Demand for increase along with demand RNB Lending Group list their properties for sale at U.S. Treasury appears to be at from foreign capital.s Colorado Business Bank TABS Colorado Lending Source TCF Bank Commerce Bank Terrix Financial Corporation Essex Financial Group U.S. Bank – Commercial Fairview Commercial Lending Real Estate; SBA Division FirstBank Holding Company Vectra Bank Colorado, N.A. Front Range Bank Westerra Credit Union

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Rendering depicts one of four DELO Apartments Drahota builds DELO multifamily project in Louisville Drahota – a Bryan Construction facility earlier in the summer. Ame- project,” said Terry Drahota, com- much-needed additional parking site which can be used for visitors Co. has been awarded the contract nities include carports with storage pany president, “which will meet for the downtown area. A walk- to the downtown area via the new to build DELO Apartments LLC’s rooms, a dog wash, fitness center, the growing need for higher-end way is being built under the rail- pedestrian walkway to down- new 130-unit multifamily project great room with full kitchen, con- apartments in Louisville.” road to access the downtown area town. in Louisville. ference room and mail lobby. The project will incorporate from the east side of the railroad OZ Architecture is designing the Drahota broke ground on the “We are honored to partner with improvements to the area and to tracks. There will be additional project. Completion is slated for four-building, 115,644-square-foot DELO Apartments LLC on this the city utilities. It will also add parking that will be located on the July.s

MW Golden Constructors completes EPIC Sky Trek project MW Golden Constructors recently completed the EPIC Sky Trek Challenge at Philips S. Miller Park in Castle Rock. The Sky Trek is a hexagon- shaped adventure challenge, measuring 100 feet in diameter and standing 50 feet high. The Sky Trek is an aerial trekking course with three full levels, featuring over 110 challenging elements. Designed in Germany and fabricated in Canada, the Prescient’s system allowed the Hyatt House Belmar to be erected in EPIC Sky Trek is a platform for seven weeks. groups of any size. MW Golden Constructors laid Prescient system implemented on Hyatt House Belmar the foundation, completed all of the site grading, concrete trails, Prescient, a Colorado-based soft- gravel trails and seeding needed ware design, engineering, struc- to properly build the Sky Trek. tural system manufacturing and ‘Their system was “This was a challenging proj- installation company, was chosen faster to erect than all ect,” said Mark Ziegler, project by Continuum Partners to com- manager at MW Golden. “Since plete the Hyatt House Belmar in of the other structural the structure was a hexagon, it Lakewood for Hyatt Hotels Corp. was a complicated layout that “We chose Prescient because options we studied.’ was all angles.” The hexagonal structure was a complicated project, according to they were cost-effective and com- – Doug Alexander, “The finish grade underneath petitive with traditional wood the trekking tower is sloped to general contractor MW Golden Constructors. framing,” said Doug Alexander, Continuum Partners create the presence of being high- Continuum Partners’ project direc- er off of the ground on the east MW Golden. “The sloping grade different heights; we still had to tor for Hyatt House Belmar. “Their side,” said Adam Alexander, safe- created a challenge since most of maintain the top of the column s system was faster to erect than all construction, as it allows compa- ty officer and senior estimator at the 19 footings and columns were at a perfect 100-foot elevation.” of the other structural options we nies like Hyatt to begin generat- studied.” ing revenue far sooner than tradi- The Prescient system allowed tional construction methods while the structure to be erected in only also providing a number of cost seven weeks, faster than what and quality benefits,” said Satyen Mortenson breaks ground on RTD Civic Center Station would be required for traditional Patel, CEO of Prescient. wood or concrete framing. Addi- Prescient, which recently dou- Mortenson Construction and that is easier to maintain and is scheduled for late September tionally, the Prescient system offers bled the size of its Arvada head- its team helped the Regional repair long-term, transforma- 2017. construction companies a faster quarters and manufacturing facil- Transportation District and the tion to an open and welcoming Civic Center Station serves as and cheaper building model using ity, is on track to complete more Downtown Denver Partner- environment, nine bus bays, a one of RTD’s busiest regional a combination of preassembled than 2 million square feet of proj- ship break ground on the RTD glass-enclosed terminal build- bus transit centers with 18 routes posts, trusses and panels. The sys- ects during 2016 in the hospitality, Civic Center Station project last ing, a bus concourse rebuild and serving an average of 15,000 tem is ideal for multi-unit struc- multifamily housing, student and month. bus ramp extension connecting passengers a day. It provides a tures up to 16 stories tall, making senior housing segments across This $26 million project was Broadway to Lincoln. turnaround point for the 16th it a viable choice for hotel projects Colorado, Texas, Florida, Nebras- designed by SEH and involves The station closed for renova- Street Free MallRide and is also like the Hyatt House. ka, Missouri, North Carolina, Illi- a complete renovation of the tions earlier this summer. Sub- the location of the Civic Center “Our system is ideal for hotel nois and Georgia.s site, including: a new structure stantial completion of the project Plaza.s August 3-August 16, 2016 — COLORADO REAL ESTATE JOURNAL — Page 23 Construction, Design & Engineering News

Wiegmann begins HVAC project for refrigerated beer warehouse Wiegmann Associates has begun work on a design-build HVAC project for High Country Beer distributors Beverage’s new 130,000-square- are required to foot refrigerated beer warehouse in Johnstown. The 2-story facil- monitor and report ity will be used for product stor- all temperatures age, product shipping and office spaces. The project is scheduled in warehouse and for completion in December. The draught cooler spaces. general contractor is ARCO Bever- age Group. Wiegmann is engineering ably maintain the temperatures HVAC systems to serve the fully required by product suppliers air-conditioned warehouse and while a large amount of product office spaces as well as two large moves in and out of the space. split refrigeration systems for the Beer distributors are required to The lounge and kitchen area are for clients at the Rose Andom Center. draught cooler. A direct digital monitor and report all tempera- control system with customized tures in warehouse and draught Milender White completes Rose Andom Center graphics will enhance climate con- cooler spaces. trol. The owner will have the abil- High Country Beverage is an Milender White recently com- ny, Denver Mayor Michael facility. The project included ity to monitor and adjust office independent beer distributor that pleted the Rose Andom Center, Hancock and other city lead- fully sprinkling the nonsprin- HVAC settings remotely from a has served Colorado since 1996. It which will provide services to ers praised Milender White for kled building, replacing the single computer program. represents more than 250 brands of domestic violence victims. The playing a critical role in getting mechanical system, upgrad- The primary project challenge local, craft, domestic and imported Rose Andom Center in down- the center opened. ing the electrical system and is engineering an energy-efficient malt beverages from around the town Denver is the first place “There are contractors, there replacing all windows at three HVAC system that will reli- world.s in the Rocky Mountain region are partners and there are those elevations. where victims of domestic vio- companies that become part The building includes park- lence and their families can of the family,” Hancock said. ing spaces, a secure reception Neenan breaks ground on California health clinic receive a wide array of services “Milender White moved from area, conference areas, leasable and support from two dozen contractor straight to family office suites and a variety of The Neenan Co., a fully care, pediatrics, dental and agencies in one safe location. right away.” spaces and offices for services integrated design-build firm medical dispensary services. “To a person, every Milender The Rose Andom Center was that are provided to victims based in Colorado, has broken With an anticipated comple- White employee who worked built in an existing structure at and families. The Rose Andom ground on Community Health tion in the spring of 2017, the on the Rose Andom Center 1330 Fox St., a 75,759-square- Center also includes a com- Centers of the Central Coast’s Oceano clinic will be designed project understood that they foot, 3-story, precast concrete fortable gathering area with a Oceano Clinic. The new facility with a patient-centered were part of creating a very building. The Denver Jus- kitchen and play area for chil- will serve the growing popula- approach, delivering a wel- special and important place for tice Council and the Mayor’s dren. tion of patients covered under come atrium, 68 parking spac- our community,” said Bryon Office, the Rose Andom Center, Milender White focused on the Affordable Care Act, as es, staff lounge, shared physi- White, president and CEO of OZ Architecture and Milender phasing the project to best meet well as provide much-needed cian lounge and community Milender White. “We are hon- White planned and executed the needs of the clients – pro- care for the community’s medi- room, in addition to the service ored to be part of this project phased renovations, based on viding complete usability for cally underserved. spaces. and proud of our role in help- fundraising efforts, to trans- sections of the building so the As the design-build part- The project marks The Neen- ing victims of domestic vio- form the building into an center could be opened, while ner for the project, Neenan is an Co.’s fourth with Commu- lence and their families.” attractive, environmentally effi- other sections wait for addi- building the 13,300-square-foot nity Health Centers of the Cen- At a ribbon-cutting ceremo- cient, and safe and welcoming tional funding.s community health center. The tral Coast, with a fifth facility project will provide primary under design.s

Saunders Construction breaks ground on yet-to-be-named high school No. 3 in Thornton Saunders Construction Inc. recently broke ground on High School No. 3 in Thornton’s School District 27J. The flagship project is part of a $248 million bond proposal that passed in November allowing the school district to build four new schools. The $89.5 million build-out of the yet-to-be- named High School No. 3 will make it the largest high school in School District 27J. “The start of construction on High School No. 3 marks a long-awaited and historic day for School District 27J,” said Superintendent of Schools Dr. Chris Fiedler. “This new school will not only provide a state- of-the-art learning facility for high school students in the rapidly growing western area of our district, but it will also ease overcrowding at our existing high schools and allow students to return to traditional daily schedules. We’re grateful for the support of the 27J community DLR Group to make this day finally hap- Rendering depicts “21st century” design pen.” DLR Group was commis- “We utilized a canyon con- dows and transparency make communities that will give stu- uct of rigorous design work sioned by 27J officials to design cept, allowing the central spine this space come to life as the dents a personalized learning drawing on best practices the new high school and Saun- of the building to act as a main central hub of activity within experience, while maintaining a from high-performing schools ders Construction will construct street for student circulation the school.” small school feel. To accommo- around the country that embrace the facility. The community, and socialization,” said Greg Saunders began construc- date steady student enrollment small learning environments students and staff challenged Cromer, AIA, of DLR Group. tion on the project in mid-June growth, District 27J has planned and cutting-edge technology,” the team to create a 21st cen- “As a focal point of the school, and the process will result in a High School No. 3 to be built said Vice President Tom Alford tury high school that features this main street connects the state-of-the-art, 253,000-square- in the northeast quadrant of of Saunders Construction. “This modern technology, flexibility north public entrance with the foot facility on 60 acres that can the district to allow for future facility will combine innovation to adapt to future educational south student entrance and accommodate 1,800 students. It growth and the completion of a with functionality, ensuring an models and inspire students in invites visitors and community will embrace a model organized future middle school. environment that will motivate an engaging environment. members into the facility. Win- around four small learning “High School No. 3 is a prod- learning and enable success.”s Page 24 — COLORADO REAL ESTATE JOURNAL — August 3-August 16, 2016

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SHOWCASE

PROJECT OF THE WEEK • CONSTRUCTION PROJECT OF THE WEEK • CONSTRUCTION

Taylor Kohrs, Acquilano Leslie team to complete high-end TI project Himmelman Construction finishes aylor Kohrs and Acquilano Leslie Inc. completed the high-end tenant improve- Florence Crittenton High School ment for a Boulder-based biotechnology company. Having outgrown its previ- his education project included three phases totaling 51,000 square feet and T ous space, the tenants found a new home occupying two floors of an existing over 2 acres of extensive site work. Phase 1 included a full interior demoli- building. T tion of an existing and aged bus facility then adding classrooms, administra- The 25,625-square-foot renovation required a phased plan to allow ease of oc- tive offices, a full gymnasium and a full commercial kitchen totaling 26,000 sf. cupancy from one building to the other. Features include 41 individual perimeter Phase 2 was completed while fully operational and included an interior demolition offices with floor-to-ceiling glass, seven open office/cubicle areas, six conference then remodeling substantial portions of the space that totaled 25,000 sf. Phase 3 rooms, two full kitchen/breakroom areas, phone rooms/wellness room, reception consisted of 2.6 acres of site work including substantial utility and right-of-way area, locker rooms and bike storage. improvements.

PROJECT OF THE WEEK • CONSTRUCTION PROJECT OF THE WEEK • CONSTRUCTION

Turner's Special Projects Division completes refresh of Hayworth's Denver Showroom urner’s Special Projects Division recently completed a refresh of Haworth's MAX Construction completes 4,000-square-foot showroom located at 15th and Arapahoe streets in down- Alden Torch financial space T town Denver. The space showcases the furniture vendor’s access flooring, office furniture and glass demountable partitions. Work included the addition of light AX Construction Inc. recently completed the 28,000-square-foot Alden fixtures, upgrades to ceiling tiles, changes to painting schemes and the addition of Torch Financial space, located at 1225 17th St. in downtown Denver. ornamental metal. One of the most eye-catching components of the space is the M MAX collaborated with Elsy Studios to renovate and expand this clean hot-rolled steel panel wall that was fabricated by a local steel shop then installed and elegant space, enabling greater functionality by connecting the 14th and 15th with Turner self-perform labor. The steel panels were covered in a clear coat after floors of the building by cutting a stair opening and constructing a new steel and fabrication so the natural grain of the steel can be seen. glass staircase, leading to a spectacular ceiling design. August 3-August 16, 2016 — COLORADO REAL ESTATE JOURNAL — Page 25

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DIRECTORY

CONTRACTORS Pinkard Construction Company Sbarra Construction West Tryba Architects INTERIOR Adolfson & Peterson Provident Construction Swinerton Builders Venture Architecture DESIGN Construction Roche Constructors Inc. The Vertex Companies, Inc. VTBS Architects Acquilano Leslie Inc. Alliance Construction Solutions Saunders Construction Inc. Barber Architecture

The Beck Group Scheiner Commercial Group ARCHITECTS ENGINEERS Bechta Group, Ltd. (BGL) Facilities Consultants Boots Construction Company Shaw Construction Acquilano Leslie Inc. 68West, Inc. BOX Studios Brinkman Partners Swinerton Builders Anderson Mason Dale Anderson & Hastings Architects Consultants, Inc. BURKETTDESIGN, INC. Brinkmann Constructors Taylor Kohrs Barber Architecture Baseline Engineering Corp. Davis Partnership Architects Bryan Construction The Neenan Company The Beck Group Beaudin Ganze Consulting Davis Wince Ltd. Architecture BVB General Contractors The Weitz Company Engineers Inc. BURKETTDESIGN INC. Design Studio Blue Calcon Constructors, Inc. Tower One Construction D.L. Adams & Associates Circle West Architects DLR Group Catamount Constructors Turner Construction Kimley-Horn and Coover-Clark & Associates Inc. Associates, Inc. Elsy Studios dcb Construction W.E. O’Neil Construction Company Inc. Company Craine Architecture Inc. Manhard Consulting Gensler

Drahota – a Bryan White Construction Group Davis Partnership Architects Martin/Martin Consulting Grey Wolf Architecture Construction Company Engineers DLR Group H+L Architecture Facilities Contracting Inc. Matrix Design Group Fentress Architects PROJECT Jean Sebben Associates, LLC. MDP Engineering Group, P.C. FCI Constructors Inc. MANAGEMENT Gensler Keeney Design M-E Engineers Inc. Foothills Commercial Builders Avison Young gkkworks. KIEDING M.E. Group Inc. Fransen Pittman General Catalyst Planning Group Godden|Sudik Architects Contractors Kimberly Timmons Interiors MKK Consulting Engineers Inc. CBRE Grey Wolf Architecture GE Johnson Construction OZ Architecture Company Facilities Contracting, Inc. H+L Architecture Monroe & Newell Engineers Inc. Planning Solutions GH Phipps Construction Fitzmartin Consulting HOK Group Companies Redland RNL Sky to Ground LLC Hord Coplan Macht Golden Triangle Shaffer-Baucom Tenant Planning Services Construction Inc. Humphries Poli Architects P.C. Engineering & Consulting Venture Architecture Haselden Construction LLC TENANT FINISH IA – Interior Architects Silvertip Integrated Engineering Consultants Himmelman Construction, Inc. Bryan Construction Inc. Intergroup Architects Vision Land Consultants Inc. OFFICE HITT Contracting, Inc. Coda Construction Group JOHNSON NATHAN STROHE FURNITURE (formerly JG Johnson Architects) Howell Construction EJCM Construction Canter & Associates Management KEPHART LANDSCAPE Hyder Construction Contract Furnishings, Inc. Facilities Contracting, Inc. KTGY Group, Inc. ARCHITECTURE J.E. Dunn Construction Consilium Design, Inc. Corporate Environments Foothills Commercial LAI Design Group JHL Constructors Inc. Builders Inc. ELEMENTS Lantz-Boggio Architects P.C. Davis Partnership Architects Jordy Construction HITT Contracting, Inc. Everything for Offices LOA Architecture HOK Group Krische Construction Howell Construction MOA ARCHITECTURE LAI Design Group Haworth Jordy Construction Martines/Palmeiro Land Elements, Inc. Jordy|Carter Furnishings Construction O’Bryan Partnership, Inc., Kennerly Construction Architects – A.I.A. Natural Design Solutions, Inc. Knoll Office Furniture MAX Construction Martines/Palmeiro OZ Architecture Norris Design Office Scapes Maxwell Builders, Inc. Construction PageSoutherlandPage Plan West Inc. Source Four Interior Elements Mortenson MAX Construction, Inc. RNL Stanley Consultants TEAMMATES MW Golden Constructors Mosaic Construction Group Roth Sheppard Architects Workplace Resource Palace Construction Co. Inc. Provident Construction Rowland + Broughton Architecture & Urban Design PCL Construction Services Page 26 — COLORADO REAL ESTATE JOURNAL — August 3-August 16, 2016 Construction, Design & Engineering Find success in defining the project, laying the foundation iring an architect, client. Diffi- engineer or any culties are the design professional only defini- isn’tH easy. You’re making a tive product decision and placing your trust of this vague in someone that will be respon- process. sible for a significant invest- The most ment on your behalf. It’s criti- success- cal you get it right. ful project From the designer’s perspec- experiences tive, beginning a client rela- share a level tionship is a lot like getting Todd Decker, AIA of thorough- Principal, Farnsworth your future father-in-law’s Group Inc., ness early in blessing. If you know the guy Greenwood Village the design well and know what he values, process even you’re in pretty good shape. If before the you approach him for the very pencils hit the paper – or the first time with a ring in your designers start their computer pocket, well then you’re taking programs. a pretty big risk. To help ensure a project gets The designer’s conundrum started off on the right foot, isn’t in knowing how to do the scope of a project should his job, it’s knowing what the be well defined by including at client really wants from the least these 10 items: program- designer and what value the ming, budget/funding, qual- client places on it. ity, location/context, required Generally, a designer is hired approvals, design and perfor- Using SketchUp and other programs, designers can illustrate a project’s potential before design documents are with a summarized definition mance standards, vision and created. of the project, its scope and goals, owner’s representation, the required services needed construction procurement project’s timeline. That scenar- client and his design partner. mark more quickly by defining to accomplish the goal. Too method and the schedule. In io usually leads to a collision While helping develop and the success of the project up often this project definition is addition, key elements of the course when the difference of define the project scope is not a front, and one that has been truncated into an oversimpli- relationship should be clearly understanding between the cli- service included in most stan- agreed upon and fully under- fied and vague sentence or outlined: team structure, roles, ent and the designer collides – dard agreements, it is one that stood by both the designer and two. Something like “a new responsibilities, project admin- and often well into the design many design firms can offer owner. With all stakeholders 60,00-square-foot, core and istration and communications. and owners find valuable. process. That means wasted on board, the foundation has shell, medical office building In a new working relationship, The value comes from sea- located at …” The rest is “TBD” these are as important as the time and money. soned professionals consulting now been laid for the design to or “as agreed to.” If the design project definition. Projects in which the client on the client’s success. The pro- begin and a path charted for a process proceeds without fur- These are the standards retains the designer to help cess is still creative – and can in successful project. ther delving into the scope, that an agreement for servic- develop the project definition fact enhance creativity – but is In an era where only the it often leads to an architect es should routinely be based are routinely more successful, not yet hampered by the design “home run” projects get fund- working on a differing sense upon, yet many of these items and they create a sense of team process. This clarity of purpose ed, project planning and defini- of assumptions than that of the are deferred until later in the and camaraderie between the results in a design that hits the tion are essential.s August 3-August 16, 2016 — COLORADO REAL ESTATE JOURNAL — Page 27

The AIA Colorado 2016 Practice + Design Conference ore than 600 archi- learned and ing partner of internationally tects and design where we acclaimed architecture studio M professionals from are headed. SO – IL, also will speak at the across Colorado will gather Our In the relatively conference. at Copper Mountain Resort diverse In addition to a full sched- Oct. 6-8 for the premiere group of short period ule of keynote presentations statewide industry event of conference and educational sessions, the the year – the AIA Colorado speakers will of time that is conference also will feature 2016 Practice + Design focus on how the AIA Colorado Annual Conference. firm cultures Cutler has taught architec- the 21st century, Business Meeting and the Hosted annually by AIA have evolved tural design courses for uni- AIA Colorado & Local Awards Colorado, the Practice + Angela M.T. Van over the past versities across the country, the architecture Gala. During the Awards Design Conference will fea- Do, AIA, LEED two decades, including Dartmouth College Gala, member architects ture nationally recognized AP BD+C highlight- and the Harvard Graduate profession will be recognized for their keynote speakers, valuable President, AIA ing the School of Design. His firm recently completed projects Colorado has not only networking opportunities, innovative recently won a national AIA representing the highest level continuing education for practices and technology that Housing Award for its unique survived a of design achievement. attendees and an exhibit hall brought us here. They also nature-inspired residen- This year’s conference also dedicated entirely to the lat- will share examples of inspir- tial project in Oregon, the worldwide provides sponsors and exhibi- est in cutting-edge design ing design that illustrates Newberg Residence. tors with the opportunity to products, technology and ser- innovation and provocative The final day of the con- recession, but generate exposure and aware- vices. thinking. ference will feature a key- ness about their products and This year’s Conference The first day of the confer- note presentation by newly also successfully services among architects and Planning Committee and AIA ence will feature a keynote appointed AIA Fellow Rick industry professionals. AIA Colorado staff spent months presentation by Robert Miller, Joy, FAIA, FRIBA, of Rick bounced back Colorado currently is seeking discussing what would inspire FAIA, principal of the nation- Joy Architects in Arizona. In sponsors and exhibitors to and educate members profes- ally recognized design firm addition to having his own to experience participate in this year’s con- sionally, and we ultimately Bohlin Cywinski Jackson. 24-person architecture and ference. If you or your compa- decided on the theme, “The Miller brings a holistic planning firm, Joy serves as record profits. ny are interested in becoming Firm of the 21st Century.” approach to the firm’s award- the John C. Portman Chair a sponsor or exhibitor, contact In the relatively short winning projects, combining Professor in Architecture Chad Hill by email at chad@ period of time that is the thoughtful innovation and at the Harvard Graduate aiacolorado.org or phone at 21st century, the architecture integration to achieve suc- School of Design. He also ers and session leaders 303-228-3911. profession has not only sur- cessful sustainable design. received the 2002 American include former AIA President Online registration for vived a worldwide recession, Day 2’s keynote will be Academy of Arts and Letters Elizabeth Chu Richter, FAIA, the 2016 Practice + Design but also successfully bounced presented by James Cutler, Award in Architecture and and Barbara Jackson, PHD, Conference will remain open back to experience record FAIA, principal of Cutler in 2004 won the prestigious DBIA, director of the Burns until Wednesday, Sept. 28. profits. We believe now is an Anderson Architects, based in National Design Award from School of Real Estate and For more information about appropriate time to reflect Washington state. In addition the Smithsonian Institute/ Construction Management the conference schedule, lodg- back on what has shaped the to serving as a design awards Cooper-Hewitt Museum. at the University of Denver. ing and more, visit www.aia- practice, the lessons we have juror for design competitions, Other notable guest speak- Florian Idenburg, the found- coconference.org.s 16

REGISTRATION IS NOW OPEN FOR THE AIA COLORADO 2016 PRACTICE+DESIGN CONFERENCE 15 THURSDAY 10/6 + FRIDAY 10/7 + SATURDAY 10/8 COPPER MOUNTAIN CONFERENCE CENTER

+ more than 550 architecture, engineering and construction industry professionals + internationally-recognized keynotes and speakers + president’s reception with prize drawings + aia colorado and local design awards gala + an exhibit hall dedicated entirely to the latest in A/E/C industry products, technology and services

For more information, to register or become an exhibitor or sponsor, visit: AIACOCONFERENCE.ORG #pdc2016 // @aiaco_pdc Page 28 — COLORADO REAL ESTATE JOURNAL — August 3-August 16, 2016 First Annual SPORTING CLAY EVENT

We are hope you’ll join us for this fantastic NEW event; the First Annual Sporting Clay Event! This will be a great opportunity to network with your fellow BOMA members at a unique venue.

All experience levels are welcome! Whether you are an expert shooter, or have never shot before, we look forward All Skill Levels to seeing you at the tournament! Accepted! Co-Chairs: Lea Sandoval and Lorie Libby

Denver Metro BOMA 1600 Broadway, Ste 650 Denver, CO 80211 [email protected] August 3-August 16, 2016 — COLORADO REAL ESTATE JOURNAL — Page 29 Page 30 — COLORADO REAL ESTATE JOURNAL — August 3-August 16, 2016

Certified Commercial Investment Members, or CCIMs, are accomplished professionals who provide advanced training and market expertise to give Distinguish Yourself. you a skilled analysis of your opportunities, whether you own, lease or invest in commercial real estate. CCIMs are backed by an exceptional education in investment, real estate and a thorough understanding of their marketplace. Discover why only 5 percent of all commercial real estate Hire a CCIM professionals hold the elite CCIM designation.

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Mark Bradley, Ken Kanemoto, CCIM R.C. Myles, CCIM, SIOR Todd Walsh, CCIM CCIM, SIOR RE/MAX Traditions Cushman & Wakefield of The Colorado Group, Inc. Realtec Commercial Real Commercial Division Colorado 3434 47th Street, Suite 220 Estate Services – Greeley Office 2204 18th Avenue 1515 Arapahoe Street, Suite 1200 Boulder, CO 80301 1711 61st Avenue, Suite 104 Longmont, CO 80501 Denver, CO 80202 303-449-2131 Greeley, CO 80634 720-583-3930 303-312-4226 [email protected] 970-346-9900 Brokerage, leasing, investment [email protected] brokerage, leasing, investment analysis [email protected] analysis, valuation Specializing in investment sales. Brokerage, leasing, investment R.C. is one of the top investment bro- analysis kers in the Rocky Mountain region.

Brad Cohen William Lawrence, CCIM Darren Nakos, CCIM Patricia M. Wassik, Managing Director Transwestern Landmark Real Estate Group CCIM, CPM Transwestern 4643 S. Ulster Street, Suite 300 P.O. Box 630 Health Connect Properties 4643 S. Ulster Street, Suite 300 Denver, CO 80237 Frisco, CO 80443-0630 3400 E. Bayaud Avenue, Suite 240 Denver, CO 80237 303-639-3000 970-668-1430 Denver, CO 80209 303-407-1470 [email protected] [email protected] [email protected] 303-830-1444 Development services investment analysis, consulting, Health care leasing, sales, manage- Brokerage, investment analysis, financing, development consulting, valuation ment, consulting, investment analysis and construction management

D. English, CCIM, Mark Lee Levine, CCIM John V. Propp, CCIM Russ Wehner, CCIM, CIPS, MPH University of Denver John Propp Commercial MAI, CPM Real Estate Partners 2101 S. University Blvd. Suite 387 Group Russ Wehner Realty Co. 4610 S. Ulster Street, Suite 150 Denver, CO 80208 6565 S. Dayton Street, Suite 280 S. Madison St. Denver, CO 80237 303-871-2142 3000 Denver, CO 80209 303-680-3344 Director of The Burns School Greenwood Village, CO 80111 303-393-7653 [email protected] 303-692-1816 Brokerage, property manage- Brokerage, Leasing, Investment Investments, 1031 exchanges, ment, consulting, investment Analysis, Health Care professional property management, analysis Consultation receivership services

Jan Friedlander, CCIM David K. Martin, CCIM Don Rulle, CCIM Tracy Wilkes, CCIM, Friedlander Commercial Real Martin Company CCIM, CRB, CNE, GRI CPM Estate, LLC 9306 E. Berry Avenue, Suite 100 ePRO eCertified Castle Keep Developments 30 Albion Place Greenwood Village, CO 80111 7927 S. Kittredge Street Castle Rock, CO 80108 Re/Max Traditions Commercial 303-850-0505 Englewood, CO 80112-4642 303-885-9200 [email protected] 2204 18th Avenue [email protected] Brokerage, leasing, investment Longmont, CO 80501 303-991-1143 Site selection, brokerage, invest- analysis 303-772-3800 ext. 110 Site selection, development, ment, health care [email protected] brokerage, investment analysis, Site selection, development, brokerage, non-resident owner rep leasing, valuation, investment analysis

Jeff Hale, CCIM, CPM Rebecca B. Martin, Eric B. Rutherford, Hale Commercial Properties CCIM, MBA MBA, CCIM, GREEN 604 Remington Street, Studio 7 RBM Real Estate Solutions Wright Kingdom Fort Collins, CO 80524 1120 Lincoln Street, Suite 1607 4875 Pearl East Circle 970-310-9435 Denver, CO 80203 Boulder, CO 80301 [email protected] 303-455-0600 ext. 1 303-541-1908 Serving Northern Colorado sales [email protected] [email protected] & leasing, investment analysis, Retail brokerage, investment Commercial/Investment Broker multifamily, mixed-use and analysis, professional property adaptive reuse. management. If you are a CCIM Jake Hallauer Brian McDonald, CCIM, Karen Setterfield, member and would Chrisland Commercial Real MS-RECM CCIM, CNE, MBA Estate, Inc. First American Title Insurance Setterfield & Bright 4745 Wheaton Drive, Suite 120 1125 17th Street, Suite 750 Aspen Real Estate Brokers like to appear in this Fort Collins, CO 80525 Denver, CO 80202 407 South Hunter St., #3 970-663-3150 303-876-1141 Aspen, CO 81611 directory, [email protected] [email protected] 970-920-1833 Specializing in Brokerage, Colorado & National commer- www.aspenreal.com please contact development, investment analysis, cial title & escrow services. Investment sales and retail leasing consulting, leasing, site selection. Lori Golightly at 303.623.1148. Gail Hamilton, CCIM Gail L. Mead, CCIM, CIPS Daniel V. Sheehan, CCIM Commercial Advisors, LLC Colorado Commercial Real Senior Vice President 8024 W. Kentucky Ave. Estate Professionals Commerce Bank Lakewood, CO 80226 1600 Broadway, Suite 1600 216 16th Street, Suite 1400 303-777-2007 Denver, CO 80202 Denver, CO 80202 [email protected] 303-933-0744 303-214-5415 Brokerage, sales & leasing, office, [email protected] [email protected] retail, industrial and investments Brokerage, Sales & Leasing, Specializing in construction & Receivership Services term financing for all types of commercial real estate. August 3-August 16, 2016 — COLORADO REAL ESTATE JOURNAL — Page 31 Economic Development News

Arvada Economic Development Association Olde Town Arvada sees flurry of development Olde Town Arvada has pool. The developer is Goldberg Solana Olde Town Station become a real estate hot spot Properties Inc. is an $83 million project that with numerous new businesses The Hilton Garden Inn is a will fulfill the goals of the city moving in, residential and com- $23 million project involves the of Arvada and Arvada Urban mercial development underway redevelopment of 3-acre site, Renewal Authority in providing and the fall opening of the $30.4 including a 20,000-square-foot high-density housing within a million transit hub along with building, into a 5-story Hilton half-mile of the G Line station. the G Line commuter rail line, Garden Inn branded hotel that Comprising 15 acres south of according to the Arvada Eco- will employ 60 to 80 employees 56th Avenue and east of Wad- nomic Development Associa- and feature 137 rooms, a 3,000-sf sworth Boulevard, the Solana tion. meeting and event space, 150 Some of the projects include: parking spaces, restaurant and Olde Town Station will feature Park Place Olde Town, a $24 mil- lounge, indoor pool and fitness 352 market-rate, garden-style lion project including the rede- center. The developer is Arvada apartments, 621 parking spaces INDUSTRY DIRECTORY velopment of two parcels of land Hotel Investors LLC in partner- (a mix of tuck-under and surface into a 5-story brick and stucco ship with Renascent Hospital- spaces) and one-, two- and three- ECONOMIC DEVELOPMENT building featuring 153 market- ity Brinkman Partners, and is bedroom units. MKS Residential rate apartments, 219 parking scheduled for completion in the is development the project with spaces, fitness center and spa/ first quarter 2017. units leasing in 2017. s COUNCILS Denver Office of Economic Development Construction starts on Denver’s newest affordable housing SEARCH DETAILS ONLINE Denver Mayor Michael B. Han- city, and as we continue to grow, from federal housing funds to crej.com/edc @ cock and other officials recently we’re proud to support projects help support the development; celebrated the groundbreaking of like the Ash Street Apartments the loans guarantee an afford-  profiles Ash Street Affordable Housing that are giving residents who ability period of at least 40 years LLC, Denver’s newest affordable are working hard a decent, safe on all of the units.  photos housing development. and affordable place to live,” said The project represents the lat-  contacts Located at 1126 Ash St., within Hancock. “It’s especially excit- est affordable units to be created  the redevelopment of the old ing to see the Ash Street apart- under the Mayor’s “3x5 chal- social links University of Colorado Health ments under construction in the lenge.” Announced in mid-2013,  videos Science Center, the project will midst of a popular and booming the challenge calls for the devel-  and more comprise 112 income-restricted area, bringing life to our vision of opment, rehabilitation or preser- apartments for low- and moder- mixed-income communities.” vation of 3,000 affordable hous- ate-income households. The 5-story building will The $24.9 million project is include one-, two- and three-bed- ing units over five years. The city being developed by Koelbel and room units for households earn- and the real estate development JOIN A NETWORK Co., Mile High Development ing up to 60 percent of the area community have produced near- and Longs Peak Advisors. Public median income (up to $43,260 for ly 2,000 units thus far. Adams County Economic City of Lafayette finance partners include the Den- a family of three) and 92 parking The city currently is working Development ver Office of Economic Devel- stalls. Building amenities include to expand affordable housing Lakewood Economic opment, Colorado Housing and a garden deck on the second resources through the creation Arvada Economic Development Finance Authority and the Colo- floor. of a new local funding source, Development Association City of Lone Tree rado Division of Housing. The OED provided $1 mil- beginning in 2017, to provide at Aurora Economic “Affordable housing is one of lion from its revolving loan fund least $150 million over the first Longmont Area Economic the greatest challenges facing our as well as $700,000 in financing 10 years.s Development Council Partnership Town of Berthoud City of Louisville Downtown Denver Partnership Brighton Economic City of Loveland Development Corporation DDP details $4.4B in downtown development Metro Denver Economic City and County of Development Corporation The Downtown Denver Part- “Developers are responding investors and brokers inter- Broomfield City of Northglenn nership has released the 2016 to increased demand for resi- ested in downtown Denver, Castle Rock Economic Downtown Denver Develop- dential housing, office space and the Downtown Denver Devel- Development Council Northwest Douglas County ment Map detailing projects hotel rooms propelled by strong opment Map highlights key EDC that have been completed or are population and job growth, as investments within the bound- City of Centennial currently under construction well as key public sector invest- aries for downtown Denver as Town of Parker since January 2011. Currently, ments,” said Tami Door, presi- defined in the 2007 Downtown City of Commerce City $4.4 billion of total investment in dent and CEO of the Down- Area Plan. The annual map Pueblo Urban Renewal Denver Office of Economic Authority development has been complet- town Denver Partnership. “We is intended to show a histori- Development ed or is under construction in produce this report as a tool to cal perspective of downtown Rifle Regional Economic downtown Denver, totaling 73 help developers, realtors, bro- development by highlighting Denver South Economic Development Corp. projects, 3.1 million square feet kers and others tell the pow- projects completed in the past Development Partnership of office space, 6,447 residen- erful story behind downtown five years in addition to proj- City of Thornton Office of Downtown Denver Economic Development tial units and 2,457 hotel rooms. Denver and to encourage con- ects under construction. Partnership Inc. These projects add a total of 599 tinued investment.” For more information, visit Town of Superior stories to the center city. Intended for developers, www.downtowndenver.com.s City of Englewood Community Development Dept. Upstate Colorado Economic Development Grand Junction Economic Partnership Town of Erie Westminster Economic Grand Junction Economic Development GJEP recognizes West Star Aviation, Denny Granum Partnership City of Wheat Ridge The Grand Junction Economic munity awareness and involve- capital investments and regu- City of Greenwood Village Partnership presented awards to ment in strengthening the local larly supports many local hotels, Wheat Ridge Localworks West Star Aviation and Denny economic vitality. As one of the restaurants and businesses. Jefferson County Economic Granum at the Western Colo- largest employers in Mesa Coun- Granum received the 2016 Development Corp. Town of Windsor rado 2016 Economic Summit. ty, West Star Aviation has seen its Joseph C. Pinster Leadership West Star Aviation received the revenues double since its open- Award for his initiative and 2016 Spirit of Economic Devel- ing and now has 425 full-time commitment to the overall pros- opment Award, sponsored by employees with a payroll that perity of Colorado’s Grand Val- FIND OR SUBMIT AN EVENT Charter Communications, for the exceeds $18 million per year. The ley. He is a founding member of s SUBMIT NEWS company’s “strong sense of com- company has made numerous GJEP. crej.com/calender @

Metro Denver Economic Development Corp. GET LISTED Initiative could cost 100,000 jobs, billions in GDP Jon Stern | 303-623-1148 | [email protected] A proposed 2,500-foot set- over the first five years and up lower Colorado’s gross domes- SUBMIT EDC NEWS back for new oil and gas wells to 104,000 jobs over 15 years, tic product by an average of Jennifer Hayes | 303-623-1148 ext. 106 | [email protected] in Colorado could result in according to a new study. the loss of up to 54,000 jobs The initiative could also Please see EDC, Page 34 Page 32 — COLORADO REAL ESTATE JOURNAL — August 3-August 16, 2016

Profile McCombs ‘foundation’ supports industrial business

by Jill Jamieson-Nichols brought McCombs to Colo- McCombs maintains her bilt University, McCombs is Dawn McCombs is argu- rado, and she spent 15 years ties to the construction indus- married to another engineer- ably the only woman in Den- with the company, taking a try, and most of her clients are turned-broker, Gary Garcia of leave, after 9/11, to backpack in some facet of the industry. Pinnacle Real Estate Advisors. ver who makes her living in around Australia, New Zea- A 150,000-square-foot deal An avid bicyclist, she’s par- industrial real estate, yet she land, Fiji and other destina- with Colorado Distribution ticipated in the Triple Bypass, is evidence that gender really tions. There wasn’t a position Group caught the attention of Copper Triangle, Courage doesn’t matter. immediately available when Mitch Zatz and the late Sherm Classic and RAGBRAI, and She may not be one of the she returned, so she studied Miller at Cushman & Wake- recently climbed Pikes Peak guys, but she can hold her for her broker’s license. “Then field, who convinced her to on her bike. own – by being herself. they called, right when I fin- join the firm’s industrial team. McCombs, whose transac- “There are times when I’ll ished my real estate license,” The team later was recruited tions included putting North- be in a meeting and it doesn’t she said. by JLL, and McCombs ern Electric Group in Hunter occur to me that I’m the only Working in business devel- worked there for five years Douglas’ former 117,000-sf female at a table of 15 men,” opment with Turner, “I was before joining fast-growing former building in Thornton, said McCombs, senior vice networking with brokers, and Avison Young 1½ years ago. enjoys engaging with clients president in Avison Young’s I was thinking, ‘Wow, this is “I felt like there was opportu- to earn their confidence and Industrial Practice Group. an interesting career path I Dawn McCombs nity in coming over and being trust, and then combining that Recruited into the construc- never even knew existed.’” the first industrial broker to with the transactional side of tion industry straight out She also recognized that, firm. “I quickly realized that launch their industrial plat- the business, which requires a of college, McCombs was “In construction, it’s the proj- if I’m going to be a successful form in Denver, and also be whole different skill set. Being hassled on job sites, but says ect that elevates your career.” real estate broker, I need to be with a firm that was a little successful, she said, entails it didn’t really faze her, espe- Furthering her construction with a national, recognizable more entrepreneurial in spir- drive, thick skin, organiza- cially since she received more career would have meant firm with a good platform.” it,” she explained. tional skills and more. support than not from her leaving Colorado. Marc Lunde recruited her to The move also put her in McCombs communicates male counterparts. So, “I literally walked away Cresa. the same office as Lunde, regularly with clients, a “I loved construction. That from a 15-year career with “Initially I thought I was who had moved from Cresa simple concept that lets them is the foundation of who I am, paid benefits and six weeks of going to be an office broker. I earlier. “Marc Lunde gave me know she is focused on their and I learned so much when vacation to nothing, just dove didn’t really know that there the opportunity in the begin- business. I was in construction. It really into commercial real estate,” were other choices,” she said. ning. He was my first stop “There is a huge satisfaction formed me as a young profes- McCombs said. “I love com- “But the more I dove in and with a national firm,” said in knowing that you are part sional,” said McCombs, who mercial real estate, and I have started calling my contacts McCombs, who also counts of your clients’ growth,” she was a mechanical, engineer- no regrets about making the in construction, I just started Avison Young’s Alec Wynne, said. “You get to take part in ing and plumbing superinten- change. I have never looked gravitating naturally to indus- JLL’s Zatz, and Miller as men- the growth of their company dent for the construction of back.” trial projects. These indus- tors and coaches. and assist them in finding real Sports Authority Field at Mile McCombs started her com- trial deals just kept coming A St. Louis native who estate that is potentially going High in 2000. mercial real estate career at a to me, and eventually I just earned a degree in mechanical to launch them into a new Turner Construction small tenant representation embraced it.” engineering from Vander- level of business.”s

Who’s News

Johnson Nathan Strohe architect. He earned his degree and residential design. and professional references are eral manager-North Park. recently added a number of in architecture and sustainable Almus earned a Bachelor of required before being eligible Harris brings nearly two individuals to its team. design from Cal Poly San Luis Arts in interior design from to take the comprehensive decades of experience in Nadine Abell, RA, NCARB, Obispo. Brown is a licensed Miami University of Ohio.s examination. The CHID exami- creating and developing LEED GA, joined the firm as an architect with five years of nation is a rigorous assessment master-planned communities architect. She has more than experience in architecture and MOA Architecture requiring examinees to demon- to the firm. In his new role, nine years of experience in construction. announced the addition of Paul strate competence in a variety Harris will oversee the strat- architecture Kaci Taylor joined the firm as Gibson, RA, as an architect of aspects that affect the health egy, vision, development and and construc- an architect. She spent the past and Rena Foster, Associate care interior environment. The execution of the 935-acre North tion. She three years in San Francisco AIA, LEED AP, and Chas Mar- examination covers acute care, Park master-planned commu- earned her focusing on quez, LEED AP, as architectural ambulatory care/outpatient, nity in Broomfield. Master of the design designers to the firm. long-term care/senior living, Prior to joining the firm, he Architecture of affordable Also joining the firm are Wil- medical facilities/other, retail/ spent 11 years with Granby and Master multifam- liam Weiner, Associate AIA, hospitality, support services, Ranch, a 5,000-acre community, of Science ily housing. EDAC, as architectural intern allied professions, codes and as CEO and vice president of in historic Taylor com- III, Andrew Olsen, Associate guidelines, environmental, evi- development. Additionally, he preserva- pleted her AIA, LEED Green Associate, dence-based design and profes- served as president of the com- Nadine Abell tion from the undergradu- architectural intern II and Dan- sional business practice. munity metropolitan districts. University of ate educa- iela Baron, architectural intern Rains graduated from Texas Harris also held leadership Colorado Denver. She earned tion at the II. s Tech University with a bach- positions with other Colorado her Bachelor of Environmental Kaci Taylor University of elor of interior design and mountain resorts, including Design from the University of San Francisco April Rains, an interior has worked in the interior Devil’s Thumb Ranch, where Colorado Boulder. and received her Master of designer with the firm of Jean design field for 23 years. In he was vice president of pro- Derek Architecture Sebben Associates LLC in Colo- her current position, Rains is gram development, as well as Bestor joined from Tulane rado Springs, recently passed a design director responsible project manager with Hines, as an intern University. the American Academy of for project management, con- where he helped complete the architect. He The firm Healthcare Interior Designers ceptual design, finish selection, 230-unit Zephyr Mountain graduated also added Examination and earned the furniture and art specification Lodge condominiums at the from Kansas Gretchen CHID Certificate. and contract administration. base of Winter Park Resort.s State Uni- Einfeldt and Passage of the examination Her experience in health care versity with Kelly Almus and earning the CHID creden- design spans acute care, ambu- DLR Group, an employee- a Master of as interior tial signifies latory, medical office buildings, owned integrated design firm, Architecture. designers. that Rains dental/oral surgery care, senior recently added 13 new design Derek Bestor He most Gretchen Einfeldt Einfeldt has met the living and outpatient facilities. professionals to its Denver recently graduated standards for Some of her projects include office. worked in with a Bach- education, the University of Colorado The recent hires are: Ben Chicago elor of inte- experience Hospital Authority expansion Ayers, architecture; Scott Bish- on historic rior design and examina- project of the inpatient tower op, architecture; David Carr, preservation, and a minor tion and is a on the Anschutz Medical Cam- AIA, architecture; Jose Chavez, adaptive in business board-certi- pus in Aurora and St. Francis mechanical designer; Rick reuse and from Colo- fied health Medical Center in Colorado Hauptman, AIA, architecture; urban infill rado State April Rains care interior Springs.s Cody Hegwer, electrical; Geoff projects. University. designer. A Leewaye, structural designer; Ryan She has expe- minimum of five years of Kyle Harris joined McWhin- April Luxner, business develop- Brown joined rience in both health care interior design ney as vice president of com- Ryan Brown the firm as an Kelly Almus hospitality experience, a portfolio review munity development and gen- Please see Next Page August 3-August 16, 2016 — COLORADO REAL ESTATE JOURNAL — Page 33 Who’s News

Continued from Previous Page management Taylor earned a bachelor’s from Colo- degree in biology from the Uni- ment leader; Alissa McInerney, rado State versity of California Berkeley.s architecture; Jon Rasmussen, University. High Fives! PE, energy+engineering leader; He has spent David Myers joined Taylor Curtis Simmons, architecture; the last 39 Kohrs as a project manager CU team assembles to honor Miller at Morgan Stafford, interior years in the with 16 years designer; and Jeannie States, construction of industry Blue Shoe Run for Prostate Cancer administration.s industry, experience. building His key The CU Real Estate Center Nathan Levy has been named Greg Conger relationships responsibili- Young Alumni Board will director of Diamond Ventures’ throughout ties include participate for the second new office in Denver, which the Colorado and Wyoming client rela- year in the Blue Shoe Run for opened June 20. region. tionships, Prostate Cancer in honor of Levy will be responsible for He leads the daily manage- procurement, the center’s former executive developing, acquiring and ment, supervision and coor- managing director, Sherman Miller. managing the firm’s real estate dination for business devel- David Myers subcontrac- The board is assembling a and venture capital invest- opment, marketing and the tors, project team for the Sept. 10 event, ments in Colorado, as well as preconstruction activities for schedules, change management which benefits The Urology other mar- projects.s and working closely with the Center of Colorado Foun- kets, includ- project team to ensure safety dation, and also is accepting Utah and Gregg Adams, LC, LEED AP and quality.s ing pledges. The event will Texas. BD+C, joined SSG MEP Inc. as begin in front of the cen- Levy a principal with expertise in Trevey Land and Commercial ter near Sports Authority received a integrated lighting and lighting expanded its team with the Field at Mile High and will master’s control sys- addition of two new staff mem- include a Kids Fun Run, 5K degree in tems. bers. run/walk and 1.5-mile fam- “Sherm” Miller business He brings Patrick McGlinchey joined the ily walk. administra- more than company’s CU’s Blue Shoe team, “Do To participate, pledge or 29 years of commercial it for Sherm!” is open to for more information, visit Nathan Levy tion and a master’s experience to real estate anyone interested, includ- https://raceroster.com/ degree in information sys- the team. services. ing students, alumni, friends tems from Boston University’s Adams He recently and others. Please see CU, Page 34 Questrom School of Business earned a graduated after receiving a bachelor’s Master of from Colo- degree in international busi- Gregg Adams Business rado State Mortenson’s 10th annual golf ness administration from Uni- Adminis- University versity of Denver’s Daniels tration from the University and brings tourney raises $39,000 for autism College of Business.s of Denver and a Bachelor of with him a Patrick McGlinchey Mortenson held its 10th outpouring of support that Fine Arts from Arizona State background annual golf tournament June Mortenson Construction has Adam S. Zard joined REC, a University.s in sales, leasing and property 17 at Fox Hollow Golf Course done for us,” said Jesse Orgas, Denver-based buyer/tenant management. In his new posi- in Lakewood, with proceeds executive director of Firefly representation firm.s Greg Lewis, Dennis Lane and tion as an associate broker, benefitting Firefly Autism. Autism. “We are proud to Joseph Pavicic were promoted McGlinchey will provide sup- Firefly Autism is a Denver- call Mortenson Construction Greg Souder joined CBRE to the position of vice president port and contribution to the based nonprofit that offers an honorary Firefly.” Valuation and Advisory Ser- of construction at Martines Pal- office, working with the entire center-based services for chil- “We’re excited to support vices Group in the newly cre- meiro Construction. team to grow the company’s dren from 18 months to 21 Firefly Autism. This fund- ated role of director of corpo- Lewis brings more than business in all directions. years in Denver and Grand raiser has been one of our rate accounts. In this role, he 37 years of experience in the Natalya Gomez joined the Junction, as well as home- most successful to date,” said will provide construction industry and company as the director of based services throughout Maja Rosenquist, senior vice technical has worked on projects that marketing. the Front Range and Western president and general man- include Safeco Field, home to direction and In this role, she will be Slope. Mortenson’s fundrais- ager at Mortenson. “We’re Major League Baseball’s Seattle guidance to responsible for developing the ing efforts and its sponsors’ very appreciative of all the Mariners, and the Steele Creek architects and vision and contributions resulted in a support we received from Apartments in Cherry Creek. engineers executing the $39,000 donation that will our trade partners with spon- Lane has been with the firm assigned to strategy of help Firefly achieve its vision sorship of this event,” she for three years in a manage- the firm’s an integrated to enrich the lives of children added. ment role, having worked on Global Work- marketing by providing help in receiv- Mortenson will hold its projects including Littleton place Solu- and public ing treatment. 11th annual tournament June Commons and Broadstone tions/Asset relations plat- “Firefly Autism is forever 16, 2017, at Fox Hollow Golf Greg Souder Cornerstar Apartments. Services form for the grateful for the incredible Course. s projects. He will be based in Pavicic has more than 29 company. She Denver. years of industry experience.s brings to the Souder’s focus will be work- Natalya Gomez team a blend ing directly with the company’s Landri C. Taylor was named of creative alliance directors, local market CEO of The Stapleton Foun- experience in commercial pho- area managers and business dation for Sustainable Urban tography and graphic design. development professionals to Communities. Gomez has specialized train- design and execute custom- Taylor succeeds Beverly ing in Adobe InDesign, Pho- ized risk-based solutions for Haddon, who is leaving the toshop and web design. She the high-end corporate equity foundation she led since 2001. attended the Art Institute of platform. The Stapleton Colorado and received a Bach- Souder joins the firm after Foundation elor of Arts degree with a con- holding numerous leadership advocates for, centration in photography and positions in his 30 years in the and works to digital marketing. She will be engineering industry. His work sustain and working closely with the firm’s experience includes oversee- realize, the business development team to ing building envelope and roof principles upgrade and expand its mar- assessments, and coordinating of the 1995 keting program.s with multidisciplined design Stapleton professionals for the remedia- Development Briana Tursick joined the U.S. tion, repurposing and altera- Landri C. Taylor Plan, which Bank Small Business Adminis- tion of existing office, retail and transformed tration Division. More than 230 people from 48 companies participated in Haselden industrial building facilities. He the former airport into a new Tursick will be located at the Construction’s clay shoot. has extensive experience with urban community. SBA Business Center in Cen- all property types, including Previously, Taylor served on tennial, where she will provide Third annual Haselden shoot raises office, retail, industrial, golf, the board of Denver Public SBA loans to a wide variety of timeshare, hospitality, mobile Schools and served as presi- small businesses throughout nearly $80,000 for disabled veterans home and multifamily assets. dent and CEO of the Urban the region. He earned a Bachelor of League of Metropolitan Den- She has more than 14 years of Haselden Construction $80,000 for Homes for Our Science in civil/structural ver. He also has been a man- combined experience in busi- held its third annual clay engineering from Purdue Uni- ager for diversity and small- ness development and com- shoot in June, raising nearly Please see Haselden, Page 34 versity and a Master of Busi- business development pro- mercial lending. Tursick earned ness from the University of grams enabling women- and a bachelor’s degree in public Colorado.s minority-owned businesses to relations and advertising from High Fives! recognizes good deeds and accomplishments become established and grow the University of Northern by companies and individuals in the Colorado commercial Greg Conger was promoted their ability to perform on Colorado.s to vice president at Alliance major development projects in real estate industry. Please share your good news Construction Solutions. the metro Denver area and is a United Properties recently and photos with us by emailing [email protected]. Conger earned a Bachelor of past vice president with Forest Submissions should be 200 words or less. Science degree in construction City Stapleton Inc. Please see Who's News, Page 34 Page 34 — COLORADO REAL ESTATE JOURNAL — August 3-August 16, 2016 EDC Continued from Page 31 and gas industry in Colorado.” tended consequence to the pas- Commissioned by a partner- sage of this initiative would $7.1 billion in the first five years ship between the Common not only damage the potential AssociationsAssociations and $14.5 billion between 2017 Sense Policy Roundtable, the of Colorado’s economy, but and 2031. Denver South Economic Devel- also could significantly reduce The study is based on data opment Partnership and the funding for education and collected from the Colo- Metro Denver EDC, the Busi- DirectoryDirectory rado Oil and Gas Conserva- ness Research Division at the infrastructure.” tion Commission, part of the University of Colorado’s Leeds The study also noted that For contact information, association profiles, and links, state’s Department of Natural School of Business completed falling commodity prices, that please visit www.crej.com and click on Industry Directory. Resources. the assessment study in June began in mid-2014, have affect- The mandatory 2,500-foot 2016. ed the industry – most notably, buffer proposed under ini- The BRD – which conducts decreasing oil and gas activ- tiative 78 would apply to all economic impact studies cov- American Council of Engineering ity. Researchers further evalu- new oil and gas development, ering a range of topics and ated the economic impact of Companies/Colorado including hydraulic fracturing industries, from health care the 2,500-foot setback proposal from both “occupied struc- and education to natural foods American Institute of Architects Colorado tures” and “areas of special and craft brewing – used the using updated depletion rates for oil and gas wells, data rig American Society of Interior Designers concern,” such as water sources REMI Tax-PI dynamic econom- and waterways, public parks, ic modeling system developed counts, price forecasts from American Society of Landscape Architects, and open spaces throughout by Regional Economic Models Moody’s Analytics and the Colorado Chapter Colorado. Inc. for the analysis, which is Energy Information Adminis- In addition, the proposal based on quantifiable indus- tration, as well as the assump- American Subcontractors Association would put 95 percent of land try metrics, including production of a 90.2 percent reduction in the top-five oil-and-gas-pro- tion and prices, employment, Apartment Association of Metro Denver in future drilling. ducing counties in Colorado wages, and taxes. The REMI “Energy is the ‘oxygen’ that off limits for new drilling and model used in the analysis is fuels Colorado’s economy. For Appraisal Institute fracturing projects (LaPlata – the TAX PI model for the state Colorado to potentially not Associated Builders & Contractors 99.6 percent, Rio Blanco – 99.2 of Colorado, with 2013 data as percent, Garfield – 98.9 percent, the most recent historical year utilize its significant energy Associated General Contractors Las Animas – 96.3 percent, and within the model. The BRD resources – which not all states Weld – 85 percent). has used REMI during the past are blessed with – would be a Building Operators Association of Colorado “This study illustrates the two years to analyze the ripple missed economic opportunity dire effects of a full attack on an Building Owners & Managers Association, Denver effects to the economy of vari- of significant magnitude,” said industry that has been histori- ous, proposed public policy Mike Fitzgerald, president and Building Owners & Managers Association, Pikes Peak cally vital to our state’s econ- initiatives in Colorado. CEO of Denver South EDP. omy,” said Tom Clark, CEO of “In addition to the heavy The full study, Colorado Oil the Metro Denver Economic loss of jobs and GDP, this set- CCIM – Certified Commercial Investment Members, and Gas Industry: Economic Colorado/Wyoming Chapter Development Corp. “Compa- back initiative would lead to nies simply would not be able a $10.9 billion decline in per- Assessment of 2,500-Foot Oil Colorado Bar Association to operate here. This initiative, sonal income over 15 years,” and Gas Setback Proposal, can were it to pass, would usher in explained Earl Wright, chair- be viewed and downloaded Colorado Brownfields Partnership the probable demise of the oil man of the CSPR. “An unin- online.s Colorado Hotel & Lodging Association Colorado Society of CPAs Who’s News Commercial Brokers of Boulder Continued from Page 33 senior devel- developments Commercial Real Estate Women - CREW opment direc- in her role as Community Associations Institute hired two new associates in its tor at Conflu- development Denver office to support devel- ent Develop- associate. CoreNet Colorado opment activities. Alicia Rhymer ment LLC. She recently was hired as vice president of She earned received a Counselors of Real Estate retail development and Megan a Bachelor bachelor's Turner Denver Metro Commercial Association as a development associ- of Science degree from ate. degree in the Univer- of Realtors - DMCAR In her new role, Rhymer political sci- sity of Colo- Alicia Rhymer Megan Turner Institute of Real Estate Management, Denver Chapter oversees retail investment and ence from rado Boulder development activities for the Wright State Leeds School Institute of Real Estate Management, Southern company in the Denver area. University and an Associate of of Business with an emphasis in Colorado Chapter This newly created role will help Applied Science degree in legal operations management. During the firm round out its develop- assisting from Sinclair Commu- the course of study, Turner also International Council of Shopping Centers, Rocky ment expertise in the market. nity College. received her real estate certifi- Mountain Chapter Rhymer has more than 11 Turner supports the devel- cate from the CU Real Estate years of experience in the real opment team in marketing, Center. Turner previously International Facilities Management Association, estate and development indus- financial analysis, underwrit- held an internship at United Denver Chapter try and most recently served as ing and due diligence for new Properties.s International Facilities Management Association, Pikes Peak Chapter Investment Community of the Rockies Haselden LeadingAge Colorado Continued from Page 33 for America’s veterans and This was the third year their families,” said McHale. Haselden project estimator Mile High Exchangors Troops, an organization pro- “Their kind and generous gifts Laura Hoff has organized the viding mortgage-free, specially to Homes for Our Troops are event, which has raised a total NAIOP Colorado – The Commercial Real Estate adapted housing for veterans making significant impacts on of almost $200,000 in that time. Development Association disabled in Afghanistan and the lives of many Colorado vet- “The support we get from our Iraq. This year’s proceeds will erans as we continue to build sponsors is truly amazing” Professional Land Surveyors of Colorado go toward building a home in specially adapted homes for stated Hoff. “Each year the Rocky Mountain Masonry Institute Golden for Marine Lance Cpl. our most severely injured vet- event continues to grow, and Sean Carroll, who was wound- erans.” it’s incredible to see the impact Rocky Mountain Shopping Center Association ed in Iraq. This year the event, held at right here in our own commu- Timothy McHale, Homes for the Kiowa Creek Sporting Club, nity.” Co-organizer Josh Huff, Society for Marketing Professional Services Our Troops president and CEO, hosted over 230 people from 48 also an estimator at Haselden, attended the shoot again this companies, an approximately added, “The day wouldn’t be Society of Industrial & Office Realtors year. “Haselden Construction 20 percent increase from last possible without the help of all is truly an outstanding patri- year. Haselden plans to con- the volunteers – this year we Southern Colorado Commercial Brokers otic company that deeply cares tinue the event each summer. had nearly 60.”s Urban Land Institute U.S. Green Building Council, Colorado Chapter WiD – Women in Design CU Continued from Page 33 source=2016+Blue+Shoe to TUCC. +Run+No. During registra- Miller, well known within If your association would like to be included in this directory, events/2016/8523/the-blue- tion, select the team “Do it for the Colorado commercial real please contact Lori Golightly at 303-623-1148 or [email protected]. shoe-run-for-prostate-cancer/ Sherm!” estate community, died of pros- pledge/team?id=13&utm_ All proceeds will go directly tate cancer in April 2015.s August 3-August 16, 2016 — COLORADO REAL ESTATE JOURNAL — Page 35 Building Operating Services & Suppliers Directory @ For Contact Info, Firm Profiles & Links, Please Visit www.crej.com BUILDING OPERATING SERVICES & SUPPLIERS ACCESS CONTROL DISASTER FIRE PROTECTION PAINTING SIGNAGE SYSTEMS RESTORATION Fire Alarm Services Inc. Ponderosa Painting & Denver Sign Group Englewood Lock and Safe, Inc. Belfor 303-303-466-8800 Remodeling, Inc. 720-344-2330 303-789-2568 303-425-9700 Western States Fire Protection Co. 303-887-4973 Schlosser Signs, Inc. Mathias Lock & Key BluSKY Restoration Contractors 303-792-0022 Preferred Painting 1-888-309-5571 303-292-9746 303-789-4258 303-695-0147 970-593-1334 Interstate Restoration & FLOORING Stellar Custom Painting ACOUSTICAL CEILINGS Construction Larkin and Associates, LLC 720-981-7827 SNOW REMOVAL Heartland Acoustics & Interiors 303-426-4200 303-202-0201 Brickman Group 303-694-6611 PARKING CONSULTANTS 303-356-9578 ELECTRICAL GENERAL CONTRACTING/ Walker Parking Consultants CAM – Common Area ASPHALT & PAVING TENANT FINISH 303-694-6622 Maintenance Services ABM Onsite Services 303-295-2424 A-1 Chipseal and Rocky 303-524-6590 Metro Construction Mountain Pavement 303-618-9716 PARKING GARAGE Facilities Contracting, Inc. 303-650-9653 Greiner Electric LLC 303-798-7111 303-470-9702 REPAIRS Apex Pavement Solutions GLASS EnCon Field Services, LLC GroundMasters 303-273-1417 Intermountain Electric Horizon Glass 303-298-1900 303-750-8867 303-282-4368 Asphalt Coatings Company, Inc. 303-293-9377 Landtech Landscape/ 303-762-8545 PARKING LOT STRIPING Maintenance ELEVATOR Avery Asphalt, Inc. INTERIOR Martinson Snow Removal 303-344-4465 Applied Elevator 303-424-3708 303-744-0366 303-423-3538 LANDSCAPING Martinson Snow Removal Brown Brothers Asphalt City Plantscaping 303-424-3708 720-276-6064 & Concrete PARKING SYSTEMS AND PLM Asphalt & Concrete, Inc.. 303-781-9999 ENGINEERING ABM Onsite Services REVENUE 303-287-0777 Economy Asphalt & Concrete JANITORIAL Mountain Parking Equipment 303-524-6590 720-259-4889 SiteSource Common Area Services ABM Onsite Services Maintenance 303-809-5950 303-524-6590 303-948-5117 EMPLOYMENT All Solutions Cleaning & PLUMBING Foothills Paving & STAFFING Terracare Associates Maintenance, Inc. Maintenance MAI Plumbing 720-384-5218 Real Estate Personnel 303-550-6739 303-289-9866 303-462-5600 303-832-2380 Empire Building Opticable SOLAR BACKFLOW TESTING Maintenance Co. 303-868-9964 EVENT & Denver: 303-365-1251 Douglass Colony & REPAIR HOLIDAY DECOR Colorado Springs: 303-288-2635 Backflow Consulting, Testing 719-219-3535 PRESSURE WASHING & Repair Inc. Christmas Décor by Swingle CAM – Common Area 303-537-0126 Denver – 303-337-6200 Maintenance Services SWEEPING Fort Collins – 970-221-1287 LEGAL 303-295-2424 CAM - Common Area Robinson and Henry, P.C. Maintenance Services BUILDING RESTORATION SiteSource Common Area 303-295-2424 EXTERIOR 303-688--0944 Maintenance Walker Restoration Consultants Martinson Snow Removal 303-694-6622 LANDSCAPING 303-948-5117 GroundMasters 303-424-3708 LIGHTING/INSTALLATION Top Gun Pressure Washing Inc. 303-750-8867 PLM Company, Inc. CAFM/IWMS SOFTWARE & MAINTENANCE 720-540-4880 Landtech Landscape/ Fluorescent Maintenance Co. 303-287-0777 CollectiveView Maintenance 303-268-3840 303-893-5532 Top Gun Pressure Washing 303-344-4465 PROPERTY 720-540-4880 IMPROVEMENT/ Martinson Snow Removal LOCKSMITHS CARPET 303-424-3708 TENANT FINISH Larkin and Associates, LLC Englewood Lock and Safe, Inc. CAM – Common Area TREE AND 303-202-0201 Mountain High Tree, Lawn & 303-789-2568 Maintenace Services LAWN CARE Landscape Company Mathias Lock & Key 303-295-2424 Davey Tree Expert Company 303-232-0666 303-750-9273 CCTV/DIGITAL VIDEO 303-292-9746 eBuilding Service SURVEILLANCE SiteSource Common Area 303-592-1055 Mountain High Tree, Lawn Maintenance & Landscape Company SYSTEMS MECHANICAL/HVAC Facilities Contracting, Inc. 303-948-5117 CMI Mechanical Denver: 303-232-0666 Englewood Lock and Safe, Inc. 303-798-7111 Colorado Springs: 303-789-2568 Terracare Associates 303-364-3443 720-384-5218 719-444-8800 Mathias Lock & Key Murphy Company ROOFING 720-257-1615 Swingle Lawn, Tree & 303-292-9746 B&M Roofing of Colorado, Inc. Landscape Care FACILITY MAINTENANCE RK Mechanical 303-443-5843 CAM – Common Area Denver: 303-337-6200 CONCRETE 303-355-9696 Bauen Corporation Fort Collins: 970-221-1287 Maintenance Services 303-297-3311 Avery Asphalt, Inc. 303-295-2424 Tolin Mechanical Systems North Metro Denver: 303-744-0366 Company CRW Inc. – Commercial 303-422-1715 Horizon Property Services, Inc. 303-455-2825 Roofing & Weatherproofing Black Gold Construction, Inc. 720-298-4323 303-791-8300 720-348-0438 WEATHERPROOFING MC Building Services METAL ROOFING/ D & D Roofing Inc. Brown Brothers Contracting, Inc. Brown Brothers Asphalt 303-758-3336 & Concrete WALL PANELS 303-287-3043 303-598-1301 303-781-9999 Precision Construction Douglass Colony Douglass Colony Douglass Colony Solutions LLC 303-288-2635 303-288-2635 303-288-2635 Economy Asphalt & 303-565-1456 Concrete Services WeatherSure Systems WeatherSure Systems 303-809-5950 SiteSource Common Area METAL SERVICES 303-781-5454 Incorporated Maintenance Reidy Metal Services Inc. Western Roofing 303-781-5454 Foothills Paving & 303-948-5117 Maintenance, Inc. 303-361-9000 303-279-4141 303-462-5600 Suburban Maintenance WINDOW CLEANING 303-257-5575 PLM Asphalt & Concrete, Inc. MOVING & STORAGE SECURITY SERVICES Bob Popp Building Services Inc. 303-287-0777 Cowboy Moving & Storage Advantage Security, Inc. 303-751-3113 FENCING 303-789-2200 303-755-4407 CAM Services Universal Protection Service COOLING TOWERS 303-295-2424 303-369-7388 Cooling Tower Services Inc. NETWORKING 303-763-2233 Split Rail Fence & Supply GEAR & PHONES Company Black Box Networking Services 303-791-1997 303-623-2631

Join the Directory Participating in this directory provides your firm year-round visibility in the newspaper and on our website. If you would like to include your firm in this directory, please contact Lori Golightly at [email protected] or 303.623.1148. Page 36 — COLORADO REAL ESTATE JOURNAL — August 3-August 16, 2016 August 3-August 16, 2016 — COLORADO REAL ESTATE JOURNAL — Page 37

INDUSTRIAL SPECIALISTS Peter Beugg, SIOR Denver, Colorado Mark Bradley, SIOR, CCIM Greeley, Colorado Mike Camp, SIOR Denver, Colorado Tim D’Angelo, SIOR Denver Colorado Mark Goodman, SIOR Denver, Colorado Carmon Hicks, SIOR Denver, Colorado Richard S. Hubina, SIOR Retired Denver, Colorado Richard R. Kelly, SIOR Colorado Springs, Colorado Paul Kluck, SIOR Denver, Colorado Geoffrey E. Kreusser, SIOR, FRICS Denver, Colorado Jim Mokler, SIOR, CCIM Ft. Collins, Colorado Chris Mooney, SIOR, CCIM Denver, Colorado Craig Myles, SIOR, CPM, LEED AP Denver, CO R.C. Myles, SIOR, CCIM Denver, Colorado Chris Nordling, SIOR Denver, Colorado Murray Platt, SIOR Denver, Colorado Alec Rhodes, SIOR Denver, Colorado Alex Ringsby, SIOR Denver, Colorado John Rodgers, SIOR, CCIM Colorado Springs, Colorado Aileen Sandstedt, SIOR Steamboat Springs, Colorado T.J. Smith, SIOR Denver, Colorado Tyler Smith, SIOR, CCIM Denver, Colorado Thomas B. Stahl, SIOR Denver, Colorado A special thanks to our 2016 Chapter Sponsors: Mike Statter, SIOR, CCIM Denver, Colorado Brinkmann Constructors Fidelity National Title ProLogis Bill Thompson, SIOR Denver, Colorado Burns, Figa & Will, P.C. First Industrial Realty Trust Streech Properties, Inc. Matt Trone, SIOR Denver, Colorado Colorado Real Estate Journal Intergroup Architects The Pauls Corporation Mike Wafer, SIOR Denver, Colorado Mitch Zatz, SIOR DCT Industrial Land Title Guarantee United Properties Denver, Colorado Denver Commercial Coatings Majestic Realty Co. US Bank OFFICE SPECIALISTS Chris Ball, SIOR, CCIM Denver, Colorado DPC Development Companies Moye White LLP Attorneys at Law Ware Malcomb John R. Bitzer, SIOR Retired Denver, Colorado DSP Builders, Inc. Opus Development Company Wells Fargo SBA Lending Gary L. Christensen, SIOR Colorado Springs, Colorado Etkin Johnson Real Estate Partners Powers Brown Architecture Westcore Properties Steve Conrad, SIOR Denver, Colorado Gary H. Feffer, SIOR Colorado Springs, Colorado Peter C. Kast, SIOR, CCIM Ft. Collins, Colorado Keith Krombach, SIOR Denver, Colorado Joseph Larkin, SIOR, CCIM Denver, Colorado Michael P. Palmer, SIOR Colorado Springs, Colorado Steve Stansfield, SIOR, CCIM Ft. Collins, Colorado Bennett F. Tuck, SIOR, CCIM Colorado Springs, Colorado DUAL SPECIALISTS Bradford Pech, SIOR Denver, Colorado James E. Spittler, Jr., SIOR Colorado Springs, Colorado Mark Van Ark, SIOR, CCIM www.siorcolorado.com • 303-312-4296. Boulder, CO Page 38 — COLORADO REAL ESTATE JOURNAL — August 3-August 16, 2016 PROPERTY AVAILABLE For Sale For Lease Wanted office • industrial • retail • multifamily • land • medical office • hospitality • restaurants • senior housing & care August 3-August 16, 2016 — COLORADO REAL ESTATE JOURNAL — Page 39 Page 40 — COLORADO REAL ESTATE JOURNAL — August 3-August 16, 2016 August 2016

Store closures spell opportunities in tight market

Murdoch’s In a tight market, vacant spaces in desirable locations will move quickly. Murdoch’s Ranch and Home Supply is one of the most active retailers for these large spaces. by Michelle Z. Askeland ver metro retail real estate market, in from Cushman & Wakefield’s 2016 Q1 new supply and demand for Class A my opinion,” said Mary Beth Jenkins, report. product. However, retailers are being Despite national headlines of store president of The Laramie Co. “This is “Even with the big-box closures, the methodical in the way they process closure and, locally, the bankruptcy of not a real estate issue, this is a busi- general vacancy rate of retail product new sites and are requiring more cri- Sports Authority, the Denver retail real ness issue. They failed because they in Denver continues to decline,” said teria before entering into negotiations, estate market has been largely unaf- couldn’t compete. It’s not because we Jon D. Hendrickson, managing direc- said Scott Crosbie, partner at Crosbie fected. What’s more, even with the have an issue with our demographics. tor of capital markets with Cushman Real Estate Group LLC. With construc- potential 600,000 square feet of vacant We are an outdoor wonderland, and & Wakefield. In the second quarter, tion costs and higher taxes, tenants space coming back on the market sports stores should be able to survive overall vacancy was 7.1 percent – are more conservative with their esti- from Sports Authority locations, many here.” down from 7.3 percent in the first mates and sale volume projections, in retail real estate – landlords, own- Overall, the Denver retail market is quarter and 0.5 percent lower than which is affecting B and C sites and ers, investors and tenants – could ben- enjoying strong net absorption, with the U.S. major markets average of 7.6 causing some to sit vacant or be over- efit from new opportunities. 397,878 sf absorbed in the second percent, he said. looked all together, he said. “Sports Authority closures will not quarter, up from 259,717 sf in the Other telling indicators include the have a significant impact on the Den- first quarter, according to research city’s strong demographics, limited Please see Page 19

INSIDE

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Retail space selection Market hall design Management tips Estimator observations to help your Design insights are shared from several How to best update an aging shopping clients select the right retail space popular River North market halls center to bring it new value Page 2 — Retail Properties Quarterly — August 2016 CONTENTS Letter from the Editor

Capital investment finds Denver highly desirable Jason Schmidt 4 16th Street Mall update Has the market for shopping centers peaked? s you flip through this issue, said the wind was knocked out of you’ll notice an important him when he saw some of the vio- Garrette Matlock and Ryan Bowlby 6 common theme – Colorado’s lence captured on video. He said retail market is strong. Rates that while these challenges are real Springs tees up for unprecedented development A and absorption continue and he won’t pretend they aren’t Tiffany Colvert 8 to rise as vacancies decrease due happening, the city has seen and to limited new supply and pent-up faced worse. As a result of the prob- Political turbulence impacts real estate plans demand. And as lems, the mall now boasts three Tyler Carlson and Erin Goff long as the real times the number of police officers 10 estate adage that as there were patrolling the mall at retail follows roof- the end of the winter, he said. Guaranties: Considerations for retail landlords tops remains true, The DDP’s comprehensive Down- Christopher T. Toll 12 contributors to town Security Action Plan, which this issue are opti- contains 240 items, is being imple- Leasing tips for aiding small-business clients mistic about the mented. In addition to increasing Joella Rodarte 13 retail future as our officer presence, the partnership demographics con- already has master permits to con- Help retail tenants select the right type of space tinue to grow. trol seven alleys, has replaced light- I wanted to take a moment to look ing in nine alleys and contracted Darrenn Call 16 at one specific retail location, the with a new security firm that starts 16th Street Mall, which accounts for this month. Purchasing vs. experiencing: A new dichotomy 36 percent of the total sales tax col- Several other initiatives for the Luke McFetridge 18 lected in downtown Denver. With retail area also were mentioned. close to 200 retailers and restau- One is The Mall Experience study, Store closures spell opportunities in tight market rants, the mall is the most popular which sets out to define a clear Michelle Z. Askeland shopping and entertainment desti- vision for the future of the mall and 19 nation for visitors to metro Denver, is being conducted in collaboration according to a Downtown Denver with the city and county of Denver Considerations for your new restaurant tenant Partnership fall 2015 report. as well as RTD. Richard Weil 20 For all these reasons, the mall The partnership also is working must be “safe, welcoming and inclu- to develop a strategic plan for eco- Market halls: Elevating the urban experience sive,” said Tami Door, DDP president nomic development for the mall to Stephen Dynia 21 and CEO, at the partnership’s 61st emphasize retail and development annual meeting in late July. opportunities while taking into Enhance value with updates to aging centers During her presentation, Door account amenities that support visi- mentioned several new initiatives to tors, workers and residents. Bruce McLennan 22 address safety on the mall as well If you have work within a specific as maintenance, mobility, infra- submarket of commercial retail real White lie: Is your roof costing you money? structure and activation. estate that is active and newswor- Irene Sanders 23 Safety on the mall is at the fore- thy, please reach out and tell me Denise Leal | 303.407.6724 |[email protected] front of many conversations about about it. I value your feedback. Maximize professional association membership 16th Street Mall recently and was 1/2 page - first available right hand page Lizabeth A. Miskelly mentioned by most of the speakers Michelle Z. Askeland 24 at the breakfast. [email protected] Denver Mayor Michael Hancock 303-623-1148, Ext. 104

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crej half page May 2016 FINAL font change.indd 1 6/29/2016 3:57:56 PM August 2016 — Retail Properties Quarterly — Page 3 Page 4 — Retail Properties Quarterly — August 2016 Market Update Capital investment finds Denver highly desirable ed by stronger diversification million sf. will stay below the historical aver- and densely populated areas. in the economy and steady The grocery sec- age of 3.5 million sf. Denver retail will remain highly population growth, Denver tor has been active The largest inhibiting factor is the desirable for capital investment, has experienced a height- with several newly impact of e-commerce on brick- and cap rates for quality assets L ened interest from foreign, opened or planned and-mortar retail. According to will continue to compress. Para- institutional and coastal capital in grocery centers. the U.S. Commerce Department, doxically, we will see a tapering the last cycle. Coupled with seg- Sprouts, Trader online sales accounted for more of retail investment sales for large ment-specific tenant interest, this Joe’s, Whole Foods than a third of total retail sales core assets as much of the existing lasting investment of new capital and King Soopers growth in 2015, a number that is inventory is owned by portfolio- is pushing our investment environ- all are pursuing over 10 percent of all retail sales. minded operators who typically ment to new heights and shifting Jason Schmidt deals in the mar- Shown by the recent bankruptcies do not sell. Furthermore, anchored our retail landscape through a new- Executive vice ket. King Soopers of Sports Authority and Hastings, tenants in new grocery develop- found interest in construction. president, JLL, is looking to build as e-commerce evolves, we will see ments often strive to own their An elongated run of positive fun- Denver up its market the real estate around us change stores. These shadow-anchored damentals accompanied by the his- share, evidenced and the magnitude of apparel, elec- shopping centers are less desir- torical imbalance of new construc- by its first downtown location and tronic and other dry goods retailers able to the most-aggressive insti- tion has created pent-up demand in a number of 125,000-sf “market- reduced. tutional buyer pool because these our retail market. Over the last 30 place” stores. Both Trader Joe’s and The active segment of the market investments offer less control and a years, Denver has delivered an aver- Sprouts have completed ground-up will come from service concepts smaller transaction size. The lack of age of over 3.5 million square feet and leased locations throughout the that don’t compete with e-com- investment options accentuates the of retail space on an annual basis. metro area. The most recent was merce. Demand is high for grocers supply-demand imbalance, further Since 2010, this number has barely Trader Joe’s lease at West Bowles and restaurant tenants who are enhancing value on the anchored eclipsed 1 million sf. However, in and South Wadsworth, making it pressing to find quality locations in core assets. the last four quarters combined, we the sixth location in Colorado. Denver. A similar phenomenon exists for have experienced 1.5 million sf of Retail is a crucial element in a However, the demand is only one smaller private capital assets under new construction. In first-quarter number of mixed-use redevelop- aspect for development. Stricter $5 million. Due to a combination of 2016 alone, there was nearly 400,000 ments happening in urban set- lending requirements, raising real estate exchange capital and a sf of new retail construction com- tings as well. Totaling nearly 2.5 cost of construction and onerous lack of fruitful investment alterna- pleted with 1.35 million sf of build- million sf, these projects include entitlement policies will keep new tives for private money, a war chest ing underway. 16 Market, Dairy Block, and 9th inventory in check. Municipali- of capital is poised to react to Den- Looking at the entire Front Range, and Colorado. The redevelopment ties throughout the Denver met- ver. Values will continue to rise for the impact is even more dynamic. trend also is occurring in existing ropolitan area are contemplating newly constructed or longer-leased JLL is tracking over 20 million sf of shopping centers, evidenced by the impact fees to help provide afford- assets with brand name tenancy. new construction and redevelop- recent announcement of the trans- able housing as well as measures Although new retail construction ments in the retail space. These formation of Regatta Plaza, which to eliminate urban renewal areas. in Denver will be less extensive projects will roll out in the next includes 130,000 sf of retail space. Keeping entitlement costs under than it has been in the past, it will several years. The largest sector is This will be a prevailing trend as control and providing tools to render the highest values we have power centers at over 10 million portfolio owners look to capitalize enhance the public and private seen in our market. This cycle rep- sf, which includes the redevelop- on the rising market. relationships for redevelopment resents a first for Denver: a stable ment of the Foothills and Longmont The current momentum undoubt- is essential. This is true especially economy. Denver’s economy has malls in Northern Colorado and the edly will bring an increase in con- for infill locations, which are most never been as strong and its appeal Promenade at Castle Rock, where struction in the next several years. desired by retailers, as they strive to capital has never been as wide or construction is underway on over 1 However, annual retail construction for access to main traffic corridors deep.s August 2016 — Retail Properties Quarterly — Page 5 RETAIL SCIENCE FROM CBRE

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For more information contact or visit: Pete Schippits Senior Managing Director, Colorado Region + 1 303 628 1776 cbre.com/denver Page 6 — Retail Properties Quarterly — August 2016 Market Update Has the market for shopping centers peaked? ne of the most common ques- been fairly limited In addition to tar- near prerecession levels, there seems tions we hear these days is, with most of the geting secondary to be a general sentiment among many “How much longer will this up new development and tertiary mar- investors that we could be close to, cycle last?” The current eco- being smaller, urban kets, an increasing or have already seen, the peak of this O nomic expansion has been in infill projects. The number of value- cycle with respect to pricing. Several effect for 84 months, and, while it has limited supply of oriented buyers are active owners reported that they are been distinguished by modest to weak new retail product pursuing lifestyle receiving just a handful of offers on growth on a national level, a diverse developed has led and power centers. properties that would have generated economic base and sustained popula- to reduced vacancy While there are a a dozen or more offers (at a minimum) tion influx in the Denver metro area rates resulting in number of investors a year ago. A reduction in the number led to strong income and job growth. Garrette upward pressure on Ryan Bowlby who see value in of offers from private parties can be New retailers drawn by the growth Matlock market rental rates. Senior broker and these types of shop- partially explained because there have have entered the market, and existing Senior vice While this has been associate director, ping centers, bank- been fewer transactions on a national retailers have expanded their footprint president of the case since the Marcus & Millichap ruptcies like Sports National Retail level, which has reduced the number here. All of these factors, in combina- investments, senior downturn, we are Authority and the director, Marcus & Group, Denver of motivated 1031 exchange buyers. tion with historically low interest rates, Millichap National seeing signs that continued impact With respect to offers from larger, have created an extremely competitive Retail Group, it is beginning to the internet is hav- more institutional investors, it comes Denver environment among buyers of mult- change as a num- ing on bricks-and-mortar retailers have down to uncertainty. There is a great itenant retail shopping centers. ber of anchored steered some investors away. Assum- amount of uncertainty right now on a Capitalization rates for most retail retail centers of size ing the real estate and credit profiles macro level due to the fallout of Brexit, product types are equal to, or more are under construction or have been of the existing tenants are similar, a the upcoming elections and the length aggressive than, prerecession levels. announced recently. power center typically will trade at a of time since the last down cycle. Investors nationwide are targeting the As these centers come on line and capitalization rate of approximately 50 While job creation and the underlying Denver area, and international inves- new product becomes available, this to 75 basis points higher than a com- fundamentals most likely will remain tors frequently entered the Denver will impact the downward pressure parable grocery-anchored center. strong in the metro area for the next 12 metro area when competing on larger, on vacancy rates, but will be offset, to Private capital and entrepreneurial institutional quality assets. some degree, by continued population investors seeking cash flow increas- to 18 months, at least, many of these So how long can this cycle continue? growth and increasing demand for ingly are drawn to C- and B- centers larger investors have to manage their It will continue as long as interest rates retail products and services. that are more or less stabilized. We’ve risk across nationwide portfolios, not continue to be at, or near, all-time lows Grocery-anchored shopping centers seen the number of these transactions just their assets in strong markets like and the underlying fundamentals remain the most sought-after mult- increase substantially from a few years Denver. The apparent slowdown in remain strong. itenant retail product type among retail ago when they made up only a small investor activity we are seeing could Denver county has grown by 13.8 investors. However, with so many trad- fraction of the overall market. These prove to be momentary or it could be percent since 2010, while the Denver ing hands over the last five years, the centers typically trade at capitalization a sign that we have, in fact, peaked in metro area, as a whole, has grown availability of grocery-anchored shop- rates between 7.5 and 8.5 percent, and terms of prices paid relative to income. by 10.5 percent. Contrast this to the ping centers in the Denver metro area because these centers can be financed Whether the market has peaked or national average growth over the same (with the grocer included in the offer- at debt with interest rates in the low- whether we are in a temporary pause, period of 5.1 percent and it’s easy to ing) is extremely limited. This has com- to mid-4 percent range, they produce investors looking for yield will be hard see why Denver is near the top of a lot pressed cap rates for these centers to an annual cash-on-cash return rang- pressed to find investment opportu- of acquisition lists for investors who levels that are, for the most part, more ing from 10 to 13 percent. In a national nities that produce yields similar to purchase retail centers on a national aggressive than prerecession levels. investment environment that offers multitenant retail centers. In a world basis. Due to the limited supply and aggres- very few options to produce that level of investments defined by uncertainty, While there have been some nota- sive pricing many grocery-anchored of yield, it’s easy to see why these cen- well-located shopping centers in the ble exceptions, new construction of buyers have looked to secondary and ters are attractive to private investors. Denver metro area will continue to be anchored-retail centers of size has tertiary markets. While properties still are trading at or one of the best games in town.s

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Cherry Creek – 101 Cook St. Downtown – 555 17th St. University Hills – 2805 S. Colorado Blvd. midfirst.com 303.376.3800 303.376.5460 303.376.3840 Member FDIC August 2016 — Retail Properties Quarterly — Page 7 Page 8 — Retail Properties Quarterly — August 2016 Market Update Springs tees up for unprecedented development olorado Springs and the Pikes at the Current Fac- Peak region is teeing up for tory site at I-25 and unprecedented develop- Woodmen Road, ment growth. Every time you with more, feasibly, C turn around it seems a new to come. With this, development is announced, and not many surround- just pie-in-the-sky hopeful developing unanchored or ments, but solid projects backed by shadow-anchored experienced developers with fund- developments are ing sources in place. It is a fun time following to meet to see the city changing and see how Tiffany Colvert demand and are all of these projects will propel the Broker, NAI landing some great retail landscape. Highland Retail tenants. From new retail developments to Team, Colorado A few new ten- Springs multifamily housing in downtown ants announced to new hotels and restaurants, water or entered the parks and museums, the list of market, including MOD Pizza, Sierra USOM exciting projects goes on. Develop- Trading Post, Mad Greens, LaVida Thanks to the State Regional Tourism Grant, Colorado Springs is investing in several new ment plans are submitted, dirt is Massage, C.B. & Potts, Fuzzy’s Taco tourism attractions, including the Olympic Museum. The increases in tourism should spur moving and cranes are up. Here is a Shop, Modern Market, ViewHouse, even more retail growth. quick rundown of some of the proj- Zoes Kitchen, Mellow Mushroom, ects happening in and around Colo- and Bad Daddy’s Burgers. continue, and we suspect this will all these new jobs comes a need for rado Springs. This list doesn’t include all the be supported by positive job growth more housing. In downtown, more n New retail developments. Retail local concepts that recently arrived, and a boost in tourism. than 440 apartment units are com- demand intensifies as the popula- such as Bonny & Read Seafood in n Job and business growth. Colo- ing on line in the next year. This tion of the Colorado Springs’ metro- downtown, TILL Kitchen on North rado Springs has begun to improve includes 33 units at Blue Dot Place politan statistical area continues to Powers, 503|W on W. Colorado the business climate and recent job (412 S. Nevada), which opened in grow, currently upward of 679,000, Avenue, Walter’s Pizzeria and Tap announcements are a reflection of January, 169 units under construc- according to the 2015 American House, Colorado’s Best Coffee, Tea & that. Sierra Completions selected a tion at 106 S. Wahsatch Ave., 187 Community Survey. Sandwich E-Café, Soluxe Salon, The property near the Colorado Springs units planned at 609 S. Cascade Ave., This year, eight grocery-anchored Burrowing Owl, The Principal’s Office airport to locate its headquarters. and 48 units at 22 Spruce St. developments were announced or and Brooklyn’s on Boulder. As well The company plans to construct Additionally, single-family building four 90,000-sf hangar facilities and opened, including the King Soop- as the many new breweries: Bristol permits are up and student housing ers Marketplace at Marksheffel and Brewing Co., CogStone Brewing Co., create an estimated 2,100 local jobs developments are on the rise as Uni- Woodmen roads, The Sprouts Center Iron Bird Brewing Co., Fieldhouse over the next five years – jobs in the versity of Colorado Colorado Springs at Powers Road and Barnes Boule- Brewing Co. and Triple S. Brewing Co. $80,000 per year range. With their continues to massively expand. vard, The Sprouts Center at Voyager contractors and vendors required to In short, deals are getting done n Parkway and North Gate Boulevard, in the Pikes Peak region, more so be nearby, there is a three-times net Hotels and tourism. For years, the The Sam’s and Walmart Develop- than in previous years. Our retail effect of these 2,100 jobs. Pikes Peak region leaned on military ment at Interstate 25 and Academy team alone has leased over 270,000 Numerous other tech companies and defense as its primary economic Boulevard, Save-A-Lot at Carefree square feet of retail space in the last have announced more jobs, and driver; however, tourism is keep- Circle and Academy Boulevard, and 12 months. Vacancy remains low, projects like the Catalyst Campus ing pace, thanks to a State Regional three Natural Grocer relocations. hovering around 5.6 percent and and Epicentral are set to attract even Tourism Grant awarded to the city There also is the rumored opening retail lease rates are climbing. We more. of another King Soopers Marketplace are optimistic this momentum will n New housing developments. With Please see ‘Springs’ Page 28 August 2016 — Retail Properties Quarterly — Page 9

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936 E. 18th Ave. Denver, CO 80218 www.sessionsllc.com Page 10 — Retail Properties Quarterly — August 2016 Legislature Political turbulence impacts real estate plans hile the adage “the only thing these well-inten- defects lawsuits panied by a letter recognizing the constant is change” remains tioned initiatives that would stabilize bill was imperfect and promising true about life, commercial are higher rents or or lower insurance to appoint a committee to review real estate developers and property costs for rates and spur new the “technical” issues with the bill. W investors crave certainty to small businesses condo and town- This committee met and, ultimately, make good business decisions. As a and family landlords. home development. presented a bill for the 2016 session result, the increasing political turbu- It’s not surprising the Despite bipartisan that clarified many provisions of H.B. lence and uncertainty at the local and biggest cheerleaders support for reform 15-1348 but left outstanding the issue of state levels of government in 2016 is for these initiatives in the House and applicability. It is not clear if the media- challenging the real estate industry in a Tyler Carlson are consultants Erin Goff Senate, the Legis- tion requirements in H.B. 15-1348 apply number of ways. Principal, who will financially General counsel, lature has failed to to projects that were approved prior to n Municipal turbulence. At the munici- Evergreen, Denver benefit from their Axiom Strategies take action. To their Jan.1, if financing has not yet begun on Inc., Denver pal level, several cities along the Front implementation and credit, some local the project. This creates enough uncer- Range recently replaced their city city staff with commendable inten- governments have tainty that bond lawyers cannot give managers and planning directors and tions but little experience owning or adopted ordinances to address this an unqualified legal opinion concern- have significant political and personal managing real estate. It’s imperative problem but most people agree this is ing the revenue stream for the bonds fractures on boards and councils, cre- the real estate community educate and an issue that should be addressed on of affected projects, which is holding ating uncertainly regarding projects advocate on these important municipal the state level in order to revive confi- up significant development projects seeking municipal approval. New lead- issues to strike a balance between our dence and certainty in condo develop- important to our community. ership may have different priorities, environmental stewardship and afford- ment. n Ballot initiatives. Colorado has one code interpretations and development able housing challenges and protecting n Urban renewal legislation. Nearly of the easiest processes in the country philosophies that may not sync with small businesses and future growth. every year since 2000, the Legislature for putting a “citizen-” (translation: spe- projects in the pipeline. n State challenges. On the state level, has considered amending the urban cial interest group) initiated measure on Additionally, there is increasing politi- we have lawsuits pending, ballot initia- renewal statute, which was instrumen- the ballot. As a result, it is not uncom- cal pushback against urban renewal, tives filed and legislative action or inac- tal in creating important developments mon for us to have as many initiatives metro districts, public-private partner- tion that creates uncertainty in building such as the 16th Street Mall, Stapleton, on the ballot as we do candidates. ships and other forms of public financ- and financing projects. Lowry, Belmar and the Twin Peaks Mall. The 2016 ballot will be no exception ing critical to the development of large- n Construction defects reform. Minimal Legislative uncertainly has kept urban with more than 150 ballot initiatives scale real estate projects. The passage owner-occupied attached housing has renewal authorities and developers filed. While most of these have been of Question 300 in Wheat Ridge and been constructed in Colorado for years walking on eggshells for years, wonder- withdrawn, there are still a number for Littleton is the most glaring examples due to our state construction defects ing when a bill would pass and how which signatures are being gathered as of municipal impairment of public statute, which has a low threshold for bad it would be. of this writing. Some of these, if adopt- financing tools. homeowner associations to sue build- That question was answered during ed by the electorate, could be enor- Additionally, new code mandates and ers and developers for defects, real or the 2015 session when the House and mously detrimental to the commercial fees chill new development already imaginary. Most U.S. housing markets Senate passed H.B. 15-1348, the Urban real estate industry, so please monitor challenged from rising construction have 20 to 25 percent of building per- Redevelopment Fairness Act, which them closely this fall. costs, skyrocketing property taxes mits for condos/townhouses, while requires urban renewal authorities to In closing, we plead with govern- and tenants fearing the end of our Colorado has less than 5 percent, which go through mediation with other taxing ment leaders – elected and staff – to economic cycle. Proposed initiatives is good for trial lawyers wanting to stir entities if the entities cannot come to take a more thoughtful and predict- such as Energize Denver and Denver’s up HOAs, but bad for entry-level home- an agreement on sharing tax increment able approach to governance in these Affordable Housing Fund each include buyers looking for attainable housing. revenues. Because this bill was heav- increasingly turbulent times and take significant fees and mandates that will Proponents of construction defects ily amended and passed through both into consideration the many unin- impair not only future development but reform have worked diligently for years, chambers in the final days of the 2015 tended consequences that come with also impact nearly every commercial particularly during the 2015 and 2016 session, the final bill that went into well-intentioned legislation, code building and landlord in Denver. legislative sessions, to bring forward effect Jan. 1 was a mess. updates, fee expansions and personnel The unintended consequences of legislation to minimize construction The governor signed the bill accom- changes.s

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UNLIMITED OPPORTUNITIES. brightonedc.org August 2016 — Retail Properties Quarterly — Page 11 Page 12 — Retail Properties Quarterly — August 2016 Legal Guaranties: Considerations for retail landlords lease usually represents a guaranties have tenant. Second, it provides a strong be sure the guarantor is aware of significant financial under- many nuances incentive for the individuals to the change in the lease and that taking by the party signing and care should be remain involved with the tenant if the guarantor remains liable on the the lease. When consider- taken in drafting the business struggles. guaranty after the change. A ing whether to enter into and negotiating Although it is possible to have It is possible a properly worded a retail lease, a landlord needs to the guaranty. the individual operator named as guaranty can protect the landlord carefully analyze whether the ten- Sometimes, the the tenant, it may benefit the land- if it does not obtain the guarantor’s ant has the ability to perform the parent is not will- lord to have the tenant be a limited consent to an amendment. Many obligations of the lease, especially ing to provide a liability company or corporation, if the tenant’s business turns out to Christopher T. full guarantee of as long as the landlord retains the guaranties include waivers of a be less successful than anticipated. Toll the lease and, in ability to pursue the individual number of different defenses the n Financials statements should be Attorney, Otten that case, a limited through a guaranty. (Note that it guarantor may have to the land- those of the tenant or guarantor. Per- Johnson Robinson guarantee may does not make sense to have the lord’s ability to enforce the guar- Neff + Ragonetti haps the first step in analyzing a PC, Denver be the solution. tenant also serve the guarantor.) anty. One of those waivers should prospective tenant’s ability to per- These limitations This would protect the landlord’s be to future amendments, and it form the obligations under a lease could be based on ability to collect even if an accident is worthwhile not only to have the is to review the tenant’s financial time passed without a default. For or other occurrence involving the guarantor waive any defense to an statements. These can vary widely instance, if the tenant has not had a tenant’s business makes it difficult amendment, but also to consent depending on the sophistication of default in the first five years of the to collect from the tenant himself. to the amendment. However, even the proposed tenant. lease term, the parent’s guaranty Thus, the combination of a limited- if a guaranty contains language to The landlord should confirm that would be released. liability entity and a personal guar- address future changes in the lease any financial statements provided Another method is to limit the anty in favor of the landlord can be are, in fact, for the proposed person parent’s guaranty in terms of dol- beneficial to both the tenant and obligation, it is still advisable to or entity that will be the tenant lars. For instance, the parent might landlord. have the guarantor consent in writ- under the lease. Often, a proposed guarantee one year of rent (which n Always have guarantors consent to ing to amendments. prospective tenant will be a subsid- may need to specify if any pass- lease amendments. Once a guaranty When entering into a retail lease, iary or location-specific entity, but through amounts are included), or is in place, it is important to obtain it is important to consider the the financial statements provided the amortized amount of the tenant the guarantor’s consent to any financial resources of the tenant. either will be those of a parent improvement allowance, leasing amendment. Absent language to the That involves both the review of company or consolidated with a commissions and other lease costs. contrary in the guaranty itself, the financial statements and consider- parent and other related entities. n Other benefits of a guaranty. modification of the underlying obli- ations as to whether a guaranty is n Guaranties. After analyzing a When the proposed tenant is a new gation can result in a full release of necessary. If a guaranty is neces- prospective tenant’s financial con- business or franchisee with limited the guaranty. If the individual sign- sary, there are options available to dition, if a landlord still feels addi- financial resources and is operated ing for the tenant and the guarantor both landlord and tenant to reach tional financial strength is required, by one person or a couple, landlords are the same person, it is important a guaranty from a related entity or should consider obtaining a per- that the person signs in the two a reasonable compromise as to the an individual may be necessary. In sonal guaranty from the individuals different capacities as if there were extent of that guaranty. Once the this case, one possibility is to have who will actually operate the ten- two different people. If the guaran- guaranty is in place, care should be the parent, whose financial state- ant. First, this allows the landlord to tor is not the person signing for taken to avoid a loss of that guar- ments have been provided, guaran- collect from the financial resources the tenant, it also is important to anty through a modification of the tee the lease. As a cautionary note, of the individuals who operate the obtain the guarantor’s consent to guaranteed obligation.s August 2016 — Retail Properties Quarterly — Page 13 Broker Insights Leasing tips for aiding small-business clients began leasing commercial Denver’s growing them move into retail space they trends should influence your real retail space in Denver nearly immigrant com- deserve. estate strategy. three years ago and soon munity uniquely n Make the right connections. For example, I am helping the realized that several poten- positioned me to SHINE with Salon Noëlle is another owner of El Señor Sol, a family I tial clients were excluded in help minority- and client that was assisted by NCDF. owned Mexican restaurant, relocate the current commercial real estate women-owned Its lease in Cherry Creek North was its Denver Tech Center location to equation. While international and business owners coming to an end, which coincided another site in south Denver. How- coastal retailers are vying to have who had previ- with the owner’s expansionary ever, before narrowing in on sites, a go in the Denver market, many ously been under- plans. This small hair salon was in smaller retailers without sophis- Joella Rodarte served. the process of transforming into a we first evaluated the space needs ticated financing and connections Associate, CBRE The follow- one-stop-shop for fashion-forward based on the changing nature of are unable to compete for space. Retail Services, ing takeaways urban women. The salon, which the dining industry. Instead of a But small businesses are no lon- Denver are applicable to offers boutique clothing for women large-format restaurant that caters ger a small part of the economi- members of the of all sizes, an aesthetician and to diners looking to maximize their cal equation. According to the U.S. small-business make-up and hair stylists, needed time in the restaurant, we have Small Business Administration, the community. an accommodating space for its downsized our focus as customers small-business sector in America n Foresee potential challenges. services. want a more fast-casual experience. now occupies 30 to 50 percent of all Platinum Elegance Bridal is a busi- While I wanted to assist the In another example, following commercial space, an estimated 20 ness owned by two savvy African owner with her real estate needs, the trend of more medical centers billion to 34 billion square feet. American businesswomen, recently I knew that many landlords would embracing retail locations, I am Thankfully in Denver there are recognized as top bridal planners overlook her for financial reasons. working with Gleam Laser Hair resources available to help smaller in Denver. After meeting them, I After introducing her to the NCDF, Removal and Med Spa to move its businesses get support. The Nation- quickly became impassioned with she managed to secure a small- al Community Development Fund their goal to open a retail showcase business loan backed by the U.S. office from a hidden-away medical is an impact investment fund that space. In spite of having a num- Small Business Administration, office building to a retail location empowers mission-driven, minor- ber of years of successful business when other banks already had with a sufficient level of customer ity-owned and designated small behind them, the owners lacked the turned her down. interface. businesses. The organization not sophisticated financial backing that The salon is moving into a new One of the wonderful things about only funds small to medium busi- would allow them to get the space space on Old South Pearl Street. helping Denver’s small-business nesses so that they may grow, but they desired in such tight market By making the right connections community is that when they also it strategically advises them so conditions. and using contacts of a minority- succeed, we all benefit. It serves that they may be profitable and tar- I realized that the NCDF could owned contractor, we were able both the individual and the com- get the appropriate customer base help them obtain formal financing. to triple the size of her space and munity to have a diverse array of from its new “Gates Center” accel- By coordinating with the NCDF in relocate her business to the heart of local retailers. It also is important advance, Platinum Elegance Bridal erator offices. her desired customer base next to that the growing minority popula- In addition to the support pro- is in the process of securing a loan the light rail on a transit-oriented tion is adequately represented in vided by the NCDF, assistance with as well as using proceeds to pur- development that will bring signifi- commerce. Often with inadequate real estate is another significant chase a cash-flowing complimen- cant foot traffic. need for the minority business tary bridal business. Once closed on n Evaluate and apply industry financial experience, small-business owner community. After several the initial location, I will work with trends. Instead of being zeroed in owners may have trouble breaking years of immersing myself in the the owners to find additional retail on the way a small business has into the market or competing for technicalities of commercial real locations for growing the brand. The always done things, it’s important space and customers with more estate, I realized my Spanish lan- ability to foresee and tackle clients’ to take stock of the overarching scalable, well-backed or bankable guage skills and connection with broad-based issues is key in helping industry trends and whether these businesses.s

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ST. LOUIS • KANSAS CITY • DENVER Page 14 — Retail Properties Quarterly — August 2016 August 2016 — Retail Properties Quarterly — Page 15 Page 16 — Retail Properties Quarterly — August 2016 Broker Insights Help retail tenants select the right type of space ou’re looking for a space to desired location for have to add additional units or nego- To meet the current construction bring your clients’ hopes, a fraction of the tiate an upgrade. code in Denver, as well as several of dreams and intricate plans cost of customizing Overall, a new site is one of the Denver’s suburban cities, highly effi- to fruition. The question is, a vacated space. best opportunities to have a clean, cient HVAC and lighting is required. Y how do you help them select For example, a customizable space. To meet the newly adopted code, a space to best suit their needs? I’ve project I worked n The historic classic. These are you’ll most likely have to upgrade worked as an estimator for local gen- on involved the some of my favorite construction or replace the existing HVAC and eral contractors for the last 10 years, installation of a projects: diving into a space filled lighting systems. The electrical and and I’ve priced projects that range commercial kitchen with character, quirks and the local plumbing infrastructure should be from $60 per square foot to well over Darrenn Call and two restrooms community. As much as these inspected because modern wiring $400 per sf. Each project posed its Senior estimator, in a 2,300-sf new buildings are full of amazing quali- and plumbing should be installed in own complications, solutions and on-call division, tenant space. We ties, often these same qualities can the space prior to taking occupancy. lessons learned. Haselden placed the entirety become real challenges. If you see any outlets that lack a Construction, In order to accomplish your cli- Centennial of the underground Older buildings, in particular those ground plug, water supply piping ent’s ultimate goal – finding a space plumbing and the constructed prior to 1979, may con- that isn’t copper or plastic, or lead that meets its needs and is within concrete slab with- tain hazardous materials from the drainage piping, the presence of its budget – the most basic decision in three working days. If this had original construction, such as asbes- these items should raise a red flag. you’ll need to make is what type of been a previously occupied, vacated tos or leaded paint. If the space con- Upgrading the building envelope to space to procure: new build, historic, space, the project would have templated has hazardous materials, make the space thermally efficient is existing tenant space or build-to- entailed demolition of the exist- you must factor the cost and time another consideration. Replacing old suit. ing slab and existing underground commitment for the remediation windows with more energy-efficient n The new build. Residential con- plumbing, installation of new plumb- into the decision. options and adding insulation to the struction is booming in Denver and ing and replacement of the concrete Other concerns with older build- walls are a couple improvements with that comes a plethora of new slab, taking anywhere from six to 10 ings can be the structure, founda- that have a fairly quick return on the commercial space for new business working days to complete, as well as tion, and mechanical and electrical investment simply by lowering the location. However, costs for moving adding the cost of demolition. systems. Closely evaluate the foun- cost of heating and cooling. If the into a previously unoccupied, newly Another thing to keep in mind is dation and structure of the space building is protected due to histori- built space can be more extensive that the placement of a concrete your client is considering. The meth- cal significance, the replacement of than initially anticipated because slab often is reimbursable to the ten- ods used in the early 20th century items such as windows becomes a new buildings often are only the ant by the building owner as part of to make concrete and mortar are bit more difficult and costly, but not building envelope. Once the client the tenant lease when one doesn’t nowhere near the level of quality impossible. occupies the space, he is responsible already exist, whereas removing and you see in today’s materials, so it’s n Existing and move-in ready. This for constructing the demising walls replacing an existing slab is harder important to ensure the foundation usually is the most economical (walls that are full height, fire rated to negotiate. is sound and undamaged. option for your retail client. Often and sound rated) at the perimeter of Heating, ventilation and air con- Start with a visual inspection of these suites possess the layout and the space. ditioning also are benefits to a new- any brick or stone veneers above finish materials left in place by the Often, new commercial spaces do build site because the tenant will be the foundation to confirm the mor- previous tenant. Considering that not have the entirety of the interior provided with new equipment that tar binding the blocks isn’t failing. the vision is almost never the same concrete floor slab placed. A space is highly efficient and clean. Your Repairs to the foundation and build- as that of the previous tenant, your that will house a restroom, kitchen client avoids the cost of cleaning an ing envelope should be completed client always should plan to remove or any facility that requires water existing system or upgrading exist- prior to occupation of the building to and/or move the interior walls, ceil- greatly improves the customization ing equipment to meet its needs. protect the investment made in the ing and flooring. options because of the freedom to If, however, it requires HVAC that is space. The mechanical and electrical With this in mind, a major issue run the underground drainage at any above-typical standards, it may still system also should be inspected. that often is overlooked concerns August 2016 — Retail Properties Quarterly — Page 17 Broker Insights timing the work. If moving into a fully occupied retail location, the renovation to the space will likely require swing shift or night work to complete. Working off hours typically involves up to a 10 percent increase in labor cost due to staff incentives. Additionally, the revised layout for the space could require moving drainage, water supply and power locations. If the space is located on the ground floor, this usually will require saw cutting the concrete slab to move the drainage to the new locations. If able to work with the existing drainage layout, relocating water supply and electrical power is relatively inexpensive. n Build-to-suit. The ability to take a piece of dirt and build a building is the American dream. Obviously, the pinnacle of customization and meeting the exact needs is the allure of a new building. Outside of the additional costs of building the foundation and building envelope, I’ll note some of the most expensive items that your client should be prepared to come across. When I approach a new project, I see the majority of my risk in the dirt. It is important to have a solid Adam Larkey understanding of what it takes to New builds, such as Matsuhisa in Cherry Creek, can be beneficial for restaurants because there is more flexibility and customization place concrete, set steel and build options available for the locations of the underground drainage before the interior concrete floor slab is placed. walls. But every site has its own unique challenges. Before purchasing a plot of land, expansive clays, but they all pose tary drainage, power and commu- is underway, you’ll likely have to engage a civil engineer to complete financial implications. From install- nications brought from the source tap the main utilities. Check with a soils test to evaluate what is below ing a deep foundation (caissons or to the building. The question is the local municipality as to the cost the surface. Expansive clays and helical piers) to completely remov- whether these service lines already of tapping utilities; the cost can be bedrock that is close to grade, a high ing the expansive material and are stubbed out or if you will have drastic – often tens of thousands of water table or hazardous materi- replacing with structural fill, these to tap into them independently. If dollars. als below grade can have a drastic solutions can add tens of thousands building in a commercial area that By making educated decisions impact on the overall construction of dollars to a construction project. is developed to accommodate the throughout the process, you and cost. Another concern in a ground-up facility, you likely would not have your retail clients will succeed in Consider a very common challenge building is the utility installation. to tap the main service line. If pro- finding the right space for their in Colorado: expansive clay subgrade. Granted, nearly every new building ceeding with building a site where business without breaking the There are several ways to deal with will have water, natural gas, sani- no major commercial development budget.s Page 18 — Retail Properties Quarterly — August 2016 Retail Trends Purchasing vs. experiencing: A new dichotomy etail is the most dynamic of all the asset classes and constantly is reinventing itself. Ben Franklin’s words, “When R you’re finished changing, you’re finished,” have never been truer. On the heels of the Sports Author- ity bankruptcy, it seems appropriate to pause and take a look at where retail is and where it may be going. In looking back at Sports Author- ity, where was Luke the experience? McFetridge, Sports Authority CRX, CSM appealed to the Regional property novice shopper manager, at a novice price NewMark Merrill Mountain States, point, which put it Longmont at a severe disad- vantage compared with Amazon and other online retailers that lack the overhead costs associated with bricks and sticks and that seem- ingly always can win on price. It also operated like a traditional retailer focused on merchandising and run- ning the occasional sale to drive traffic. Outside of trying to compete with price, what was its differentiator? Where was its experience? Compare that to REI, which is the Timothy Siebert same retail sector at a higher price Common area space is no longer just used for parking and landscaped islands, but rather to engage the senses and activate the area. point, and commands higher demographics. It offers a far greater expe- 1. Experience. When was the last rience. Go in for a GPS watch and time you had an experience buying you likely are met by an expert in toilet paper – wait, don’t answer that. his field who is experienced, knowl- Either you offer an experience or edgeable and ready to deliver real you don’t. Commodity purchasing value to you by advising, guiding and like office supplies, dog food and informing you on how to make the everyday toiletries are the most vul- best decision that fits you and in a nerable. faster manner than the internet cur- Amazon has increased its sales rently can provide. Not to mention from $1 billion to $100 billion in only – once the experiential retail pur- 15 years! Its technology makes it way chase is complete – you find yourself too easy to make simple purchases, inspired by your new purchase, the but concepts that bring an experi- brand and the experience the store ence that cannot be duplicated by delivers. You then are compelled to the internet are setting themselves book an excursion through REI to put apart. Just look at the active retailers your new purchase to use and create in today’s market: food, fitness and a lifetime experience of your own. services are dominating the market. This, to me, is the current dichot- Ask yourself: Is my business internet omy in retail today: purchasing vs. proof? experiencing. 2. Authenticity. While there is no Reflecting on the retail bankrupt- silver bullet to create an experi- cies since January 2015, there is ence, to do it well you have to know Timothy Siebert a distinct trend of where retail is your audience and personalize it for Village at the Peaks installed a large water feature to mimic what consumers would find going. In addition to Sports Author- them. Lower Downtown is not Auro- in a national park to create a fresh feel, soothing sounds and relaxing atmosphere. ity, there have been a dozen bank- ra and River North is not Longmont. ruptcy filings since January 2015 Spend the time up front to know with seven uses being apparel, two who your audience is and what it and ensure that your project does islands, but rather to engage the soft goods, two sporting goods and wants. RiNo is a great example. The well by doing good. In a single week- senses and activate an area. one electronics. They include: renaissance of this once-overlooked end, the Village at the Peaks project For instance, at Village at the • Body Central (apparel) industrial area now is one of the hot- raised over $60,000 for the Long- Peaks, we incorporate a lawn area • Cache Inc. (apparel) test markets in Denver because it is mont Humane Society and Relay for designed to host concerts, commu- • RadioShack (electronics) delivering high-quality experiences the Cure. nity events and even the occasional • Fredrick’s of Hollywood (apparel while still paying tribute to its roots. Shopping centers are no longer football game. We installed a mam- ... sort of) 3. Technology integration. Many of just for shopping, find an authentic moth water feature to mimic what • Anna’s Linens (soft goods) our properties are using technology cause-related need in your com- you find in a national park to create • Quicksilver (apparel) to bring people in, but once we have munity. By doing so, your shopping a fresh feel, soothing sounds and • American (apparel) them, we must engage with them. center becomes something more relaxing atmosphere. These items • WetSeal (apparel) to the community and, thus, so do We can have a conversation and would not have shown up 10 years • Hancock Fabrics (soft goods) encourage them to make memories your retailers. ago, but we need to be ready for the • Sports Authority (sporting goods) on our sites, which they then can 5. Think differently. Retail from next 10 years and consumers are • Pacific Sunwear (apparel) post about. We want to get a pulse the past 10 years is not how retail demanding more in order to com- • Vestis Retail Group (sporting from our retailer’s shoppers and will be for the next 10 years. goods) keep them engaged. Strong retail- The absence of traditional junior pete for their attention and their • Aeropostale (apparel) ers are all starting to embrace the anchors is making developers incor- dollars. How many of these would you say omnichannel advantages technol- porate different uses to fill the acre- Change is what makes retail fun offered an experience? ogy offers and the experience it can age these boxes used to. and, while I may not have a crys- create. If your merchants are in the Smaller pop-up stores and bazaar- tal ball, I feel we have some pretty Strategies dark ages, your space may be going like concepts are opening. These clear signs as to where we may be Here are some strategies to look for dark. projects create adaptable uses to going. I am given hope by a Charles – not only in your projects, but also 4. Make a difference. Incorporating suit community needs and drive Darwin quote, “It is not the stron- in your retailers – to ensure you are nonprofits and community organi- a constantly changing experience. gest or the most intelligent who delivering a long-standing product to zations, such as the music and arts, Common area space is no longer will survive, but those who can best your customers. answers a need in the community just used for parking and landscape manage change.”s August 2016 — Retail Properties Quarterly — Page 19 Retail Trends

Continued from Page 1 also provide consumers with support for online sales. “The thing is, if they’re in good loca- Some sectors enjoy more insulation ‘Ten years ago, the concerns were Blockbuster, Circuit tions with good demographics, the from internet competition than oth- spaces will go,” said Susan Karsh, ers and are doing well because of this. City, Radio Shack, Albertsons, etc. Today, we are managing director with Newmark The most insulated sectors include Grubb Knight Frank. “The more sec- entertainment, food and retailers encountering similar concerns over Sports Authority, the ondary locations are going to be more that sell unique products or products problematic – but they always are, so that require physical interactions ‘Amazon impact,’ the changing grocer landscape, etc.’ nothing is new.” before buying – for example, trying on ski boots or sitting in a chair to – Jon Hendrickson, Cushman & Wakefield The State of Retail determine the level of comfort, said While consumer demands change, Jenkins. bankruptcies are inevitably part of the When retailers adapt to provide that can take the entire space. For the tions, landlords may need to get cre- retail environment. “The most recent consumers with unique experi- largest vacant spaces – 50,000 sf or ative. “That could mean an office user bankruptcy of Sports Authority was ences, their real estate needs adapt bigger – Big R, Hobby Lobby, and Mur- or something that’s not just pure retail only one company, not a string of alongside. Retailers are displaying a doch’s Ranch and Home Supply are – something that doesn’t need the business failures due to a major mar- thoughtful mindset when considering some of the most active, said Karsh. kind of traffic that the traditional box ket disruption,” said Crosbie. “One-off expansions, which requires landlords Sports Authority, which had 600,000 national would take,” said Karsh. bankruptcies will inevitably happen in to be more creative and flexible in sf spread out over 30 locations, is We might begin to see retail in the any market and are a part of how an order to make deals, said Crosbie. looking at vacant boxes that average front and storage in the back, a “retail industry grows.” “We call it the ‘Recession Hang- about 30,000 sf, said Jenkins. “This is a mullet,” as Crosbie calls it. Or shopping In fact, these current announce- over,’” he said. “We see it as a good very manageable size store to release,” center developments may be scraped ments are not much different from thing for the overall market. Land- she said. It is easier to subdivide a for new mixed-use development, previous decades. lords and developers will just need to 30,000 sf store than it is to divide a which would be far more expensive “Ten years ago, the concerns were understand what retailers want and 100,000 sf, and there are more 30,000- than repurposing the space. Blockbuster, Circuit City, Radio Shack, expect as they go out and evaluate sf tenants out there than larger ten- The other option is dividing the Albertsons, etc.,” said Hendrickson. projects.” ants. “So, for the most part, the releas- space for multiple tenants. Many land- “Today, we are encountering similar ing of those stores may be an oppor- lords will hesitate to do this because Vacancies tunity for both the retailer and the concerns over Sports Authority, the dividing boxes is expensive, said landlords of those shopping center.” ‘Amazon impact,’ the changing grocer While vacancies can be challeng- Karsh. “They’ll divide it if they have to, In this 30,000-sf range, off-price landscape, etc. The beauty of retail is ing, there are major opportunities for but sometimes I’ve seen landlords tell retailers, such as TJ Maxx and Ross, that the location is not generic and landlords in this predicament. When the tenant to take the entire space at the space is not a commodity. Retail filling empty stores, landlords have are active, as are grocers, gyms, fur- a much lesser rent just so they didn’t always reinvents itself and the lat- an opportunity to raise rents, increase niture users, distribution retail and have to go through dividing it,” she est and greatest concepts will see shopping center traffic and create a some soft goods. said. the fundamental strength of a space greater experience for consumers. When landlords are determining However, every space is unique and or location. Investors are targeting Often during lease up, landlords ideal prospective tenants to cultivate shopping centers with that long-term offer incentives and low rent to or maintain a strong tenant mix in splitting a large vacant space can have vision.” anchors or department stores under their centers, sporting goods providers serious payoffs, said Jenkins. Two factors often blamed for today’s the assumption that the retailer will stand to benefit from Sports Author- “There’s always a cost of demising changes go hand-in-hand: the inter- bring traffic to the center. So if this ity vacancies because landlords know the space, but smaller spaces dictate net and millennials. Millennials – the anchor tenant leaves, the landlord has they’d fit well in the desired tenant larger rents,” Jenkins said. “So the first generation to grow up with the opportunity to bring in another mix. payback should be there. And tenants online shopping – demand that retail- tenant who could be a much better Other box retailers that had been are downsizing, so the more reason- ers provide value, convenience, sup- rent payer, said Karsh. unable to penetrate certain trade areas ably sized spaces you have, the easier port and an experience that motivates Of all the vacant space, the Class will try to take advantage of the A and it’s going to be to release them in the them to visit the brick-and-mortar A product in desirable locations will B locations as well, said Crosbie. future. It’s really a long-term invest- location, said Crosbie. Retailers must move quickest, often finding retailers For C product in less desirable loca- ment when you demise a space.”s Page 20 — Retail Properties Quarterly — August 2016 Restaurant Trends Considerations for your new restaurant tenant he old adage “location, loca- reason, the retailer patron. These are highly regarded tion, location” has been a needs to command components of the overall experience virtual Bible verse for real prominent positions in a restaurant. estate for more than 60 years. on “near-me” appli- Basic components such as ease of The retailer needs to T Based on my bias from the cations, Facebook parking, distance to the front door, hospitality industry, I thought that the and Twitter in order lighting and the overall sense of command prominent phrase was derived from an hotelier to catch the eyes of security are important to meet the by the name of E.M. Statler. How- consumers when psychological and physical needs of ever, in recent years, the subject was they are ready to consumers. You want a tenant that positions on “near- researched further. Now the roots of Richard Weil make their meal will pay attention to the infrastructure this retail coinage phrase is credited Senior consultant, decisions. Brokers and address the exterior and interior me” applications, to a real estate agent from Chicago CFE-National and landlord should needs of the property. And, of course, in 1926, who published a real estate Restaurant inquire about a the restrooms are important, especial- Consultants, classified ad in the Chicago Tribune Denver prospective ten- ly space for baby changing. Adequate Facebook and that read: “Attention salesmen, sales ant’s social media space, adequate lighting, and heating, managers: location, location, location, engagement during ventilating and air conditioning are all Twitter in order to close to Rogers Park.” the review process of qualified ten- areas that surveys find female patrons This mantra remains as true now as ants. care about. How important these it was in 1926. Following are several In order to compete in the food items are to potential tenant can be catch the eyes of tips to help you determine the right service and hospitality industry, a discovered during the due-diligence restaurant tenant for your shopping well-laid-out and skillful social media part of the interview process of the consumers when center and the best ways to support marketing strategy must be employed. tenant candidate. that tenant. It is important as a land- This should be discussed as part of an n Leasing. The right location within lord or owner of a shopping center interview with a prospective tenant a large shopping center facilitates they are ready to care about how the restaurateurs and should be heavily documented in food service operations and, almost approach and handle their business. any business plan presented to bro- always, is in demand because res- to make their As a professional food service and kers and landlords. taurants draw additional foot traffic. hospitality industry consultant work- n Design. Restaurateurs, when However, addressing the needs of the meal decisions. ing in the Rocky Mountain region, I designing or remodeling their restau- anchor tenant can be challenging, am witnessing new factors that are rants, look at the number of seats in and the “A” sites within the center driving retail-purchasing decisions. the restaurant and their compelling as well as the end caps present the These purchasing decisions stem need to put butts in seats. This, of best opportunities for the landlord, tion of where to locate the restaurant from how the restaurant uses social course, is a key economic factor to the developer and the prospective within your space is challenging. media, engages millennials and tech- test feasibility of the business. How- tenant. During the interview process, be savvy boomers, and acknowledges the ever, one cannot overlook specific An independent restaurant needs sure to ask questions about the ten- influence women have in decision- details that address comfort, security all of the help and opportunity it can ant candidate’s beliefs and plans for making. By embracing these needs, and cleanliness within the restaurant. get in order to be successful. Closing social media, attracting and retaining restaurants and centers can team up As women account for the greatest the door to bright ideas and placing female consumers, and overall layout to succeed. consumer decision-making power, it intriguing budding entrepreneurs in and design beliefs within the restau- The dinner decision – what or is important to look at the concept, the “B” sites is a recipe to increase rant relating to comfort, security and where are we going for dinner – often menu, attraction and design of a the restaurant failure rate. cleanliness. Asking these questions is not made until after 4 p.m., when space, and apply some basic Maslow Yes, the restaurant business is a early on can help ensure that the a quick text after to spouse, friends principles to address the basic needs risk. Managing the risk from the get landlord and restaurant tenant are or family drives the answer. For this of the consumer and the female go in terms of the final determina- both moving toward the same goals.s August 2016 — Retail Properties Quarterly — Page 21 Design Market halls: Elevating the urban experience ince the beginning of modern attempt to disguise civilization, markets have the patchwork. The been the cornerstone of eco- graffiti that accu- nomic development; venues mulated during S where communities can buy the years of disuse and sell provisions with spaces dedi- was left untouched. cated to public or civic functions. Insulation was They are gathering places for people added to the roof to connect and share ideas, stories so as to not alter and experiences. Stephen Dynia, the interior ceiling The traditional ideals of communi- FAIA surface. Twenty- ty markets were taken into account Principal, Dynia foot-high garage while designing The Source and Architects, Denver door openings were the market hall spaces in Zeppelin cut into the façade Station and The Source Hotel. The to access the west- Source is one of the most success- ern views and allow for two out- ful projects in the revitalized River door dining terraces. Inside, tenant North Arts District. It has served as demising is achieved with utilitarian the central catalyst of retail develop- light gauge metal framing material ment in the neighborhood, catering mounted on high-tension springs to to local residents while simultane- form guillotine doors that raise and ously becoming a landmark desti- lower, giving the tenants around the Adam Larkey nation and a model for market hall common central space flexibility in The shell of The Source was repaired with no attempt to disguise the patchwork, and the developments throughout the coun- operating hours, while still piquing graffiti that accumulated during the years of disuse was left untouched. try. visitor interest because the shop Dynia Architects worked closely interiors are visible. with Zeppelin Development to trans- The result is a thoughtfully curat- a knife shop and centrally located ants in each market hall space that form the building that has become ed collective of food and lifestyle kiosks featuring rotating vendors in not only complement each other, The Source. The building, a 19th vendors surrounding a central bar the podium levels along Brighton but also are experts in their crafts. century foundry, is a great example and lounge. The space also includes Boulevard. The 8-story, 100-room And our team has designed distinc- of industrial buildings of the era: a dedicated pop-up space for farmer’s hotel will feature a beer garden and tive spaces for each individual ten- magnificent lofty space infused with markets and arts events. This is pool on the top floor with views ant, while maintaining a cohesive natural light and ventilation, with what keeps people coming back – of the mountains and city skyline. feel throughout the market hall floor a roof supported by elegantly effi- each visit is an opportunity for a The market hall is connected to the with the combination of new and cient trusses. The design objective fresh experience in a thriving com- existing Source building via a garden old building elements. was to preserve the characteristics munity setting, mindful of its future courtyard ringed with restaurant ter- Zeppelin Station, located adja- that define the building as a “cathe- as a new center of activity as well as races. cent to RTD’s new rail station at dral” of the industrial era while its past in the rich history of indus- The character of The Source Hotel 38th and Blake Street, is a transit- accommodating its repurposing try in Denver. market hall complements the origi- oriented development designed into a functional marketplace. This Building on this success, The nal Source interior, incorporating around visionary tenants featuring required a strategy of contrasting Source Hotel will house a second rustic and industrial elements into a 22,000-square-foot market hall on the new and the old. market hall. The food-centric retail a modern concrete shell. Zeppelin the ground floor. The shell of the building was space will include two distinctive Development has been highly com- repaired where required with no restaurants, a New Belgium brewery, mitted to seeking high-quality ten- Please see ‘Urban’ Page 28

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Boulder Denver Northern Colorado Laramie 303.440.0399 303.830.1120 970.352.1700 307.755.1040 www.acmllp.com Page 22 — Retail Properties Quarterly — August 2016 Management Enhance value with updates to aging centers e all have a favorite con- entertainment, venient local retail cen- including smaller Before ter near our home or stores, personal our office that offers the service and higher- W things we need on a daily quality merchan- basis. These favorite centers typi- dise. cally include stores that fill our basic These trends needs, like groceries and services, lead to demand for wine and spirits, cell phones, dry a more intimate cleaners and salons. We recently Bruce pedestrian environ- began seeing more quick-serve food McLennan, AIA ment, including and coffee in this mix as well. Principal, outdoor seating But what happens to these centers Farnsworth Group for al fresco din- when time begins to render them Inc., Denver ing and places to obsolete? Retail space, like the prod- gather and inter- ucts sold, has a shelf life that can act. Access and visibility from the become stale over time. street is critical to the success of The challenge when redeveloping the project, so creative placement of these centers is enhancing the value improvements is key to the success of the asset while maintaining the of redeveloping a center. bones that define and, sometimes, When considering design options After constrict the project. The owners’ in response to these trends, it dilemma is that many of their leases becomes apparent that quality ten- were written years ago under differ- ants will pay more for better quality ent economic conditions and renew- space. Frequently this drives rede- als haven’t kept up with current sign concepts to the point of removal trends in retailing or encouraged a of underperforming, enclosed square return on their investment. footage, which is replaced with ame- Existing centers were configured nities as well as outdoor and pedes- in times when long-dark boxes were trian spaces to drive a net increase fine because merchants pretty much in revenues. The resulting spaces sold what everybody else did without allow owners to sign flagship ten- much specialization. Designs reflect- ants and first-to-market concepts ed the attitudes of “Give me front- that add value to their assets and door glass and a back wall for my improve their marketing and tenant merchandise, and I’m fine.” However, renewals. those dark boxes don’t command Many owners with centers that premium rents in current interactive have not aged gracefully during their Before and after: When examining this property, the team looked at the aging exterior retail environments today. life cycle are realizing that the ten- and decided to cut back the soffits at the roofline, add new fascia and encapsulate the Today’s retailers – and their cus- ant competition for stable assets in roofline. Additions of colorful window treatments and landscape features helped update tomers – demand more personal mature neighborhoods is fierce. They this typical stretch of inline retail as well as individualize the retail spaces. interaction, more amenities, more must invest in their properties to natural light and ventilation, and keep up with the market. Fulfilling a more inviting experience. We see the strategy of enhancing the value menting high-quality enhancements asset is successful to the health of demand for food, connectivity and of aging shopping centers by imple- while maintaining the bones of the most redevelopment deals.s August 2016 — Retail Properties Quarterly — Page 23 Management White lie: Is your roof costing you money? s an operator of retail prop- the insulation to erties, you’re always looking maintain heat in to cut costs and save money. the building. When it comes to your ener- During the sum- A gy bill, it is no kept secret mer and in south- that your roof is an important player ern climates, where Colorado Springs doesn’t do much in keeping your utility costs low and the weather is saving you energy. Within the past generally warm, 15 years, reflective or “cool” roofs this type of roof- better with a mere $124 cooling have been widely accepted as an Irene Sanders ing system makes effective, low-cost solution to energy Superior Roofing, financial sense. For loss and high utility bills, all while Aurora northern climates, reducing the carbon footprint of the where a major- benefit, followed by a whopping building. ity of businesses This trend has been so prominent- spend more on heating their build- ly accepted that large cities such ing than cooling it, a reflective roof $508 heating penalty. as New York and Chicago have had can be unfavorable, costing a busi- the use of these products mandated ness owner a bigger carbon footprint for commercial roofing. And while and hundreds in heating and wasted cool roofs have proven themselves energy. As charted by Engineering to work, there is a discrepancy often Green Buildings in the February 2015 when not implemented properly. by “a solid materials resistance to overlooked in their fervent promo- HPAC Engineering newsletter, most Because reflective roofing keeps conductive thermal transfer.” This tion – location. of the cities in colder climates were the roof cooler, during the winter means the thicker the material (the Reflective roofs often are pro- shown to have a significantly nega- months, as the heat from inside the higher the R-value), the more resis- moted with the general thumbs-up tive cost impact when using white- building rises, condensation begins tant it is to thermal transfer. With of approval, meaning its use has reflective roofing. to form underneath the roof mem- been interpreted to be equally effec- Let’s use a hypothetical 1-story, the presence of several layers of tive and positive, regardless of loca- 10,000-square-foot retail building brane. While condensation may not insulation, moist air has a more dif- tion, climate and weather. However, and compare the cooling benefit and cause a problem overnight, if not ficult time reaching the underside research has shown that for north- the heating penalty of using a reflec- solved, it could cause mold, spores, of the roof’s membrane and causing ern climates, where heating often tive roof in various colder climates. rotting and eventual permanent condensation. outstretches cooling costs, reflective Denver, while having a cooling ben- roof damage. This problem, how- Needless to say, when it comes roofs carry high heating penalties. efit of $168, ultimately suffers a $435 ever, is easily avoidable with the to your roof, the type of material White reflective roofs, when heating penalty with white roofing. implementation of a continuous you use is important. Roofing is installed properly, can reduce cool- Colorado Springs doesn’t do much air/vapor retarder or several layers no one-size-fits-all rule. Much like ing costs by reflecting ultraviolet better with a mere $124 cooling ben- of insulation. Condensation when real estate, it’s all about location. By rays off the roof, allowing the insu- efit, followed by a whopping $508 present in single-layers of insula- choosing a quality-roofing contrac- lation to easily keep the buildings heating penalty. Other cities that tion can freeze and expand to tear tor, you will be provided a cost esti- inside conditions, thus reducing take major losses include Portland, the edges of the insulation apart. mate of the roofing materials best the cooling costs. This same mate- Washington, D.C., and San Francisco, Take into consideration the R-value, suited to your climate. That being rial – often made from white ther- whose penalty reaches past $700. defined as the “unit of thermal said, regardless of the color, your moplastic olefin or TPO – does the Beyond costs and carbon emis- resistance for a particular mate- business should schedule a yearly same reflecting process during the sions, reflective roofing in northern rial,” or simply the “thickness” of a inspection to warrant the safety, winter season, making it harder for climates can cause condensation material. The R-value is measured durability and quality of your roof.s Page 24 — Retail Properties Quarterly — August 2016 Associations Maximize professional association membership pproximately six years ago, relevant educa- This year will be our third annual my boss asked me to attend tional topics, such Star Awards for Retail Real Estate a luncheon hosted by the as water conserva- Excellence. Peers can nominate Rocky Mountain Shop- tion in shopping retail operators, developers and A ping Center Association. center landscapes operating shopping centers for the The topic was water conservation that first intro- value they bring to the local com- for shopping center landscapes. duced me to the munity. In 2015, the RMSCA inde- One of my interests is sustainable organization. pendent judges recognized retailers, practices in real estate develop- At the begin- service providers and shopping cen- ment, and I had spent the past ning of each year, Lizabeth A. ters for their design, construction year implementing smart irrigation Tom Clark, CEO of preparedness at shopping centers. Miskelly and marketing. RMSCA currently is controllers at shopping centers. Regional property the Metro Denver As a case study, LeMasters and accepting nominations for the 2016 Although I had work that needed to manager, Economic Devel- members of his team described how be done, I decided to take an hour Regency Centers, opment Corp. and they practiced an active shooter Star Awards. With all of the activity Greenwood Village to learn something and meet with executive vice scenario that included law enforce- in the market, it will be exciting to like-minded professionals. After the president of the ment and community partners. He see a compilation of the top retail first hour, I was hooked. The venue Denver Metro Chamber of Com- emphasized the value of engaging real estate in the industry. was intimate, people were getting merce, presents the Colorado eco- with your law enforcement and Beyond the pertinent information to know each other and it felt like nomic forecast. The presentations community partners on a regular gained by attending the lunch-and- a community. Now it is 2016 and I highlight the top reasons the Den- basis in order to establish a strong learn sessions presented by the am proudly serving the second year ver metropolitan region is growing relationship. RMSCA, the most valuable resource of my term as the president of the and succeeding. Attendees can take While this is common sense, it is is building relationships. As a result RMSCA. the statistics back to their organi- a good reminder that relationships of participating in RMSCA, I have Maintaining professional knowl- zation armed with additional data are key in the real estate business, a trusted network of colleagues edge of our industry and network- to support a new project, capital not only among other real estate and service providers beyond those ing is a great aide for company and investment to an existing center or professionals, but also with the established from my desk that I professional growth. Being a mem- negotiate a stronger position with community at large. can reach out to as a peer advisory ber of the RMSCA has delivered a new tenant to the market. While A significant component to rela- group. more return on investment than industry professionals often have tionship building and community As I reflect back to the first lunch engagement is social media. In any other tool in my business. Both anecdotal information or spend session six years ago and think August, Lisa Zetah will present on financially and in nonmonetary hours researching to gather the about the relationships built and terms, the human relationships data, it is beneficial to have a one- social media and the evolution in knowledge gained, I am grateful have built a framework for the hour presentation by an expert. the use of marketing for shopping to RMSCA for providing me with industry that I am in and allowed Shopping centers often serve as centers. Zetah’s 20 years within invaluable experiences that have me to become a better asset to my quasi-public spaces. They are unre- the real estate industry as a broker employer. stricted with large numbers of peo- and marketing director working for allowed me to be an even stronger At the RMSCA, we value each ple coming and going. This places a developers and shopping centers asset to my company and to grow person’s time and contribution by significant responsibility on owners gives her an inside perspective on personally and professionally. providing a forum for the mutually and management of shopping cen- the benefits and challenges facing I would like to personally invite beneficial exchange of information ters to protect the asset, the busi- shopping center management when you to join us at our next RMSCA among all shopping center profes- nesses and the general public. using the vast array of social media meeting Aug.18 at the Wellshire sionals serving the Colorado retail Recently, Cherry Creek Shopping tools. I personally look forward to Inn, where we will be expanding real estate industry. A key compo- Center’s General Manager Nick implementing and sharing with our knowledge of best practices in nent, like many organizations, is LeMasters presented on emergency others what I learn from Zetah. social media.s August 2016 — Retail Properties Quarterly — Page 25 Page 26 — Retail Properties Quarterly — August 2016

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Urban Continued from Page 21 town Denver. The market hall is not a Designed to serve as the new idea – it has existed for For this market hall, we social hub for the train sta- centuries – but the way that employed a different organi- tion, Zeppelin Station’s mar- we design market halls is zational strategy by featur- ket hall will cater not only new. We focus on the neigh- ing a food counter with open to its commercial tenants boring community, with the kitchen and bar at the cen- but also to commuters along goals and values of urban ter of the space. Surrounding the rail line. This market hall residents interwoven into this is a coffee shop, res- embodies a continued com- our designs. We are passion- taurants and unique retail mitment to making spaces ate about creating an enrich- shops. Above, an additional that reflect the needs and ing experience for each bar and seating area on the values of the surrounding visitor and to contribute to mezzanine level is oriented community and elevate the the rich and vibrant fabric of to view the skyline of down- urban living experience. urban Denver.s

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John Denver: A Rocky Mountain High Concert Celebration With The Colorado Symphony SEPT 10 SAT 7:30 Andres Lopera, conductor The musical legend John Denver is honored in a special concert celebration with your Colorado Symphony this fall. See and hear two-time Grammy Award®-winning singer/songwriter John Denver on video performing in a concert spectacular featuring archival video footage of Denver performing classic songs backed by live performances from former members of his band with full symphony orchestra. This concert is an innovative musical treat and unforgettable tribute. Hear John Denver’s voice, see vintage John Denver video performances, hear stories of John Denver told by old friends. Concerts will include hit songs spanning his career and honor Denver’s memory and music.

presenting sponsor colorado symphony proudly supported by tickets: coloradosymphony.org Page 30 — Retail Properties Quarterly — August 2016 Retail Broker Directory @ For contact information, firm profiles and links, please visit www.crej.com, click on Industry Directory, then Brokers, then Retail subcategory

If your firm would like to participate in this directory, please contact Lori Golightly at [email protected] or 303-623-1148 ext. 102

AmCap Properties, Inc. Crosbie Real Estate Group, Inc. Ira Shwartz Scott Crosbie • Scott Steputis Front Range Commercial

RETAIL BROKER DIRECTORY Richard Hobbs •Eli Boymel • Forrest Hunt Jay Carlson • Bob Nolette • Michael Roslin Adam Rubenstein • Rich Otterstetter Brandon Straub Rhonda Coy • Jeff Germain • Sarah Alfano

Antonoff & Co. Brokerage Inc. Jeffrey Hirschfeld • Douglas Antonoff Gibbons-White, Inc. Gene Stone Chris Boston • Stacey Kerns James Howser • Steve Sims Michael-Ryan McCarty • Carly Beetham David Hicks & Lampert Dan Ferrick • Angela Topel • Annie Lund Brokerage, LLC Gregory Glass • Lynda Gibbons Joe David • Philip Hicks • Allen Lampert Scott Hagan • Andrew Fox • Steve Yeager Erik Christopher • Steve Markey J. R. Hagan • Bobby Kline • Jacob Hawkins Goldberg Properties Inc. Rebecca Richards • Ken Himel Mark Goldberg Mike Brunetti • Zander Rodriguez AXIO Commercial Real Estate John Livaditis • Tanner Johnson

J & B Realty Steve Peckar • Matt Landes Peter Kapurnais • Garth Gibbons CBRE Denver Team Dean Callan & Company Glenn Anderson • Matthew DeBartolomeis Becky Callan Gamble • Brit Banks Jim Lee • Tom Mathews • Jon Weisiger Hunter Barto • Dryden Dunsmore Joella Rodarte • Dan Miller Keys Commercial Real Estate Geoffrey E. Keys • Ronan B. Truesdale Colorado Springs Rodney D. Foster • Erik McDonald Brad Bird • Patrick Kerscher Dan Rodriguez • Whitney Johnson

Fort Collins DePaul Real Estate Peter Kelly Investment Group, Inc. The Laramie Company Matthew Watson • Charles Thompson Mary Beth Jenkins • Bill Jenkins

Colliers International Dunton Commercial Real Estate Marcus & Millichap Lisa Vela • Jay Landt • Jason Kinsey Company Barry Higgins • Garrette Matlock Joel Meranski Bob Bramble • Danchen Astle Drew Isaac Tony Giordano • Paul Roberts • Mark Fouts Louis Lee • Charles Nusbaum • Chris Saros Chris Vincent • Franz Lehnert Sofia Williamson • Manny Cereceres

NAI Highland, LLC Colorado Group, Inc. Craig Anderson • Tiffany Colvert Todd Walsh • Scott Crabtree Randy Dowis • John Egan Jessica Cashmore Logan Harrison • Jim Spittler

Excell Fund Brokerage, L.L.C. Jeff Brock • Steve Cersonsky • Pete Kelly Cushman & Wakefield Virgil Shouse Newmark Grubb Knight Frank Tyler Bray • David Fried • Robert Hudgins Frank Griffin • Susan Karsh • Justin Kliewer Ray Rosado •Tyler Voell Mike Quinlan • Carolyn Martinez Mike Lindemann Riki Hashimoto (Investment Sales) Dan Grooters (Investment Sales) August 2016 — Retail Properties Quarterly — Page 31 Retail Broker Directory If your firm would like to participate in this directory, please contact Lori Golightly at [email protected] or 303-623-1148 ext. 102

Pinnacle Real Estate Advisors

James Beebe • Justin Brockman SullivanHayes Brokerage – RETAIL BROKER DIRECTORY Eric Diesch • Tom Ethington Denver Jeff Johnson • Justin Krieger Tom Castle • Chris Cook Valentiner & Associates Jamie Mitchell • Billy Riesing Courtney Dahlberg Key • Mark Ernster Sheri Valentiner Matthew Ritter • Peter Sengelmann Mike Kendall • Emily Klimas Cody Stambaugh John Liprando • Grant Maves Brian Shorter • Christopher Anton Josh Burger • Bryan Slaughter Mark Williford

Quantum Commercial Group W.W. Reynolds Companies, Inc. Candace Seaton • Lori Ondrick Chad Henry • Nate Litsey Marty McElwain

Tebo Development Company Stephen Tebo • George Levin

Realtec Commercial WalderaScott Real Estate TJ Antinora • Annah Moore • Erik Broman Partners Bruce Campbell • Patrick O’Donnell Kimberly Waldera • Noah Waldera Gage Osthoff • Nick Berryman • Tom Reznik Scott Nannemann • Paul Klink The Zall Company Stacey Glenn • Stuart Zall

SRS Real Estate Partners Tony Pierangeli • Jim Hoffman Western Centers Inc. Joe Beck • Brian Hollenback • Austin Tillack Brian Pesch • Corey R. Wagner • Bill Singer: Tami Lord • Molly Bayer Trevey Land and Commercial Mitch Trevey • Nick Nickerson • Jason Thomas

Western Investor Network Tony Hemminger • Charlie Perry SullivanHayes Brokerage – Pinar Bayraktar • John Jumonville Boulder Michael DePalma • Sean Kulzer David Dobek

Unique Properties Inc. Marc S. Lippitt • Scott L. Shwayder WestStar Commercial Tim Finholm • Brad Gilpin • Phil Yeddis Tim Hakes • Kevin Hayutin Gannon Roth • Allen Freedberg Michael Hayutin • Stephanie Keyes Samuel Leger Page 32 — Retail Properties Quarterly — August 2016