Denver Real Estate Market Analysis Tour
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Denver Real Estate Market Analysis Tour


(jazz music) – [David] Just arrived at DIA – Denver International Airport. We’re in Green Valley
Ranch right now looking at one of our developments. It broke ground about a month ago. What’s interesting here is
the train line connecting this entire area anchored
by the airport west of here, was just completed and
operational 90 days ago. And what you can see as we
walk through this neighborhood, is they’re literally
building 50 to 100 homes every three months. The demand is off the charts. Once we’re done touring
our development site here, we’re going to head to the
Anschutz medical district. From there we’re going
to head to Longmont, which is just north of Boulder. We see opportunity in both
and we’re going to take a look at some projects both in
Longmont and in Boulder. From there we’re going to
head to downtown Denver and finish our day touring projects there. (music) – [Tom] The whole area
used to be a military base. And the old medical center
was to the west of here, by about three or four
miles on Colorado and Ninth, and they ran out of space. So when this base was
decommissioned, they decided to move the medical campus here. You can that used to be part of the military base straight ahead. You’ll have R&D onsite, not
just patients, but innovation. You’ll have residents,
students that live on site. You’ll hundreds of thousands
if not millions of square feet of office space and development
going on so that you can continue to be one of the
pre-eminent medical centers, research and development
centers in the country. – So Tom, how big is the TIF? – [Narrator] Tax increment financing is a public financing method
that is used as a subsidy for redevelopment, infrastructure, and other community-improvement projects. – The TIF district is
a couple square miles. All surrounding the medical center. – And you think the approved uses will be anything medical
office and housing? – Housing, and their will
probably some incentive for commercial as well.
– [David] Probably retail? – [Tom] Yeah. – [David] This is also a
Qualified Opportunity Zone. – [Narrator] Qualified Opportunity Zones are economically distressed communities where new investments may be eligible for preferential tax treatment. – You got two different subsidies. The city wants it built,
that’s why they’re incenting you to do it. And then the federal
government wants to build too, and their offering federal tax subsidies. So, this is something we that
should take a hard look at. (music) – We are way past Dave’s lunch break time. He’s getting hangry. – [Dave] Hey I’m on Midwest time. It’s 1:30 in Chicago. Just finished our lunch, feeling better. Super cool, adaptive
reuse warehouse building. Nice retail, food hall. We went with the all natural chicken. Isn’t all chicken natural Tom? – It grows by itself, yeah. – I’m a little confused by that. Anyway, we’re now gonna get in the car. We’re gonna drive a good way north, probably a 40 minute drive
with traffic to Longmont. We’re gonna take a look at some
development sites up there. Longmont is the affordable
alternative to Boulder. And then we’re actually going to go just a little bit south to Boulder and check out some deals
in Boulder as well. So let’s get busy, we’ve got a lot to do. (music) (warning music) – [Dave] There they are,
they’re (bleep) everywhere. Look at that.
– [Tom] I told you man. – [Dave] See em? – [Tom] There’s no
shortage of prairie dogs. – [Dave] If you get
near em, they’ll (bleep) bite your ear off man.
– [Tom] They will bite you. Yes. – And they all gang up on you together. – (laughs) I feel like
that’s a Simpsons episode. – (laughs) They hold you down. We’re in Longmont looking at
a potential development site. Major access to the
freeway, that’s Highway 119. Tom, that’s an old sugar
mill, is that right? That’s right, they used
to produce raw sugar from sugar beets at that mill. – So that entire site
over there is actually in a Qualified Opportunity
Zone, this site is not. That’s how arbitrarily
these maps are drawn. So, Tom let’s talk prairie dogs. – Let’s talk prairie dogs. – We’re experienced in
prairie dogs now, so. Would that be a prairie dog mound? – [Tom] That is a prairie dog mound. If you stand here long
enough a prairie dog may come out of that. – If we were to start a project like this, wouldn’t it start with
trying to figure where to move prairie dogs? – That is the first thing,
we’d have to find a safe place for prairie dogs to live. We’d have to get em all out of the site and move them to a safe place. – Like our neighbor’s site? – The neighbors site
would be great (laughs). (laughs) – [Tom] Longmont is a
suburb or small community of the larger Boulder metro,
which is obviously part of the larger Denver metro. It’s a much quieter, less hectic lifestyle than what you might be
find in Boulder or Denver. – [Dave] Is it time for a doughnut? – [Tom] It’s always time for a doughnut. (music) – We just drove through
another competitive property of the Longmont development deal. We got a sense of what 2018
vintage product looks like. And now we’re gonna head down to Boulder and then we’ll look at a couple
of opportunities down there. (upbeat music) – [Tom] We’re in Boulder looking at some office opportunities. This deal behind us is a
mid 70’s percent leased, 1980s vintage asset. – [Dave] What I really
like about this asset is the location. You’re on a hard corner,
busy artery street. And then two blocks from this asset, you have the investment of
the city where they’re trying to redevelop, 300 thousand
square foot Google buildings are being purpose-built. This is the type of
building it will draft. (upbeat music) This is the last office building
we’re gonna see in Boulder, then we’re gonna head downtown. Finish our day down there. It’s about 5:30 right now. Beautiful, sun setting, and
you can see the mountains in the background. Just gorgeous. You can tell why people live out here. This is a 80 to 85 percent
occupied office building. The story here is it’s the third asset in the portfolio of
three we are looking at. We’d buy em all three together. Trap rents, meaning usually
the rents are higher than the leases that are in place today. And a value add story:
we put in more capital in order to attract better
tenants who pay more rent. It’s worth looking at. We’ll take some more looks at it. (upbeat music) – [Dave] The sun has set in
beautiful downtown Denver. We’re right by Union
Station at this point, which is the major metro hub. All of the trains are coming in. Tremendous density down here. You’ve got office,
multi-family, condos, retail. We’re big believers in this area. We think it’s gonna continue to grow for the next 10 years and beyond. We’re gonna sign off from Denver. It’s been a long day. I think we started at 5:30 in the morning and we’re well in the
evening at this point. We’ll see you soon. (upbeat music)

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