Rocky Mountain News: February 20, 2006

Second Pinnacle tower to launch early
Strong sales cited as entire project set to open in June '08

By John Rebchook

The Denver office of Opus Northwest and Boulder-based Income Property Specialists are kicking off a major downtown development ahead of schedule.

They have booked such strong sales with the 27-story Pinnacle at City Park South condominium tower -- under construction on the former Mercy Hospital site -- that they have moved up the start date for the second phase, a $55 million, 22-story tower.

They'll be able to open the entire $160 million development of both towers, plus a parking garage and 18 townhomes around the garage, in June 2008.

Pre-sales for the second tower, where the units will be a bit bigger and more expensive than in the first tower, will kick off in May. Construction is scheduled to start on the tower at Fillmore Street and East 17th Avenue in August or September, about three months ahead of earlier projections.

"The surprise is we're going to launch earlier than we originally thought," said Scott Menefee, senior director of development at Opus. "We learned a lot from our homes, so instead of 122 units in the second phase, we're going to have about 105. And they're going to be about 10 percent more expensive."

In the first tower, the larger units sold the quickest, and they have a waiting list of more than 40 people who want units of 2,200 square feet or more.

They've already sold 89 units in the first phase, including one penthouse that sold for "north of $2.3 million," Menefee said. They've sold about half of the 18 townhomes, priced from $499,000 to $800,000. The least expensive condo unit went for $270,000.

Most of the comparable competition in other neighborhoods is priced in the $485 to $500 per square foot range, he said. Pricing is not yet finished for units in the second tower, but they're shooting for prices from about $300 to $500 per square foot, with the majority priced between $415 and $430 per square foot.

"And if the Four Seasons and the (proposed 55-story) Gulf projects get built in downtown, they'll be in the $650 to $750 (per square foot) range," Menefee said. "Most of our buyers love to visit LoDo but don't want to live by a bunch of bars that empty out at 2 a.m. They prefer the quiet of this neighborhood but only being a few minutes from downtown."

City Councilwoman Elbra Wedgeworth said that the strong sales are a testament to the location, the development and dozens of meetings with neighbors to address their concerns about density and noise. The Pinnacle at City Park South is the largest piece of a $225 million development that also includes about 120 townhome-style units by Lafayette-based Wonderland Homes and about 240 luxury apartment units by Denver-based Allied Realty Service.

"It says a lot about the neighborhood and the quality of the project," Wedgeworth said. "The amenities they are offering are very intriguing. I think people really think it is a great project and want to live there."

Ed Natan, a longtime real estate consultant in the area, said there is a growing acceptance of high-rise living in Denver.

"I think the city is ready for more density," Natan said. "It does not have to be just in downtown, either. I see no reason why parks like Cheesman should be the only one with all of the density around it.

"I think 17th Avenue is one of the great city streets next to a really great park. I think it would be nice if there were a little more density, more big buildings, around City Park."

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