The Denver Business Journal: April 21, 2006

Developments sprout with view of city parks

by Michael Perrault

Caroline Ellett and her dog, Kitty, are regulars at Commons Park, the relatively new Denver park that hugs the South Platte River and features tree-lined walkways northwest of Union Station.

The 20-acre-plus park was a huge factor in Ellett's loft-hunting at Riverfront Park in the Central Platte Valley, particularly since she'd previously lived near both Washington and Cheesman parks.

Elsewhere, Metro State College Professor Mary Hart is among the first purchasers of condos at The Pinnacle at City Park South, one of 266 residences alongside sprawling City Park, which was modeled after New York's Central Park. Next week, she's taking a crane ride to the 15th floor to check what the view will look like from her condo when she moves in during the spring of 2008.

"I'm a New Yorker, so one of my very vivid memories as a youngster was visiting my aunt who had a place on Fifth Avenue, overlooking Central Park," said Hart, who at the time was living in the suburbs. "I remember my mother saying, rather wistfully, 'a cabin in the sky.' I think that had an effect on me."

Home buyers such as Hart and Ellett who desire parkside living suddenly have an array of new options near downtown Denver.

For example, residential towers -- one 27 stories tall, the other 22 -- are going up and are part of a larger development at City Park. The Glass House's two 23-story towers are being built near Commons Park.

They're the first parkside high rises to sprout up in decades. The 20-story Park Lane and Marion Place condos across from the 165-acre Washington Park were built 35 years ago, intermingled with Craftsman-style bungalows and Tudor revivals. Condo and apartment buildings along the eastern edge of the heavily wooded 80-acre Cheesman Park were built in the late 1970s through the early-to-mid-1980s not far from converted Victorian homes and gaslight-lined streets.

At the first residential tower being built now at The Pinnacle at City Park South, 1650 Fillmore St., prices will range from $275,000 to $2.4 million for the 144 two- and three-bedroom, 940- to 2,270-square-foot condos. When people quickly began buying the units, the Denver office of Opus Northwest and Boulder-based co-developer Income Property Specialists stepped up the timeline for a second tower to be built next door.

"I'd like to say we're visionaries, but we're really just following the momentum," said Scott Menefee, a longtime Denver resident and Opus Northwest's senior real estate director. "What's really made this project work is City Park."

The Pinnacle at City Park South development will cost about $225 million and include upscale "Park Homes," a group of 1,563- to 2,150-square-foot stacked townhomes.

As part of Opus Northwest's commitment to provide affordable housing at the City Park development, Denver-based Mercy Housing broke ground April 18 on The Legacy at City Park South, which features 33 affordable residences. Priced from $130,000 to $195,000, they're for residents with average incomes of about $40,000 to $61,000 per year who may have thought they'd been priced out of the new area, said Ricardo Rodriguez, Mercy Housing's project developer.

Also at the park location, Lafayette-based Wonderland Homes is building 120 townhome-style units, and Denver-based Allied Realty Service is building 240 new luxury apartments.

At Riverfront Park, the Glass House has begun taking sales contracts for its nearly 400-unit condo development being led by Beaver Creek-based East-West Partners and co-developer Wood Partners, based in Marietta, Ga.

Workers for J.E. Dunn Construction expect to complete the concrete, steel and glass south tower by January, with the north tower's completion slated for March.

"When you're inside, it's almost like you're outside," Chris Frampton, East-West Partners' vice president of sales and marketing, said of the Glass House's unique architectural design and wide-open views of downtown to the east and the Front Range mountains to the west. "It takes a little time to get used to."

Residences in the Glass House will be priced from about $150,000 to more than $500,000, Frampton said.

East-West Partners also built One Riverfront, featuring seven three-story townhomes near Commons Park and a seven-story tower with 43 one- and two-story lofts. Some upscale townhomes, lofts and penthouses, directly across from the park, will be priced from $675,000 to $1.5 million.

"It's kind of the ultimate in parkside living," Frampton said.

Although East-West Partner's forte has been resort development in places such as Beaver Creek, Breckenridge and Lake Tahoe in California, the Commons Park site and its proximity to light rail, the Pepsi Center, Invesco Field at Mile High, Confluence Park and many other amenities were a natural draw, Frampton said.

"In essence, it's the ultimate infill project," he said. "It's a different kind of project for us, but it's not that drastically different."

Developers are building a variety of home options at both parks, and they said empty-nesters and young professionals are the most likely purchasers. But they've been surprised at the level of interest from a diverse segment of metro Denver's population and a stronger demand than anticipated for larger residences.

Many prospective buyers of new homes near City Park don't realize the size and scope of the park, which spans 380 acres and features the Denver Zoo, Denver Museum of Nature and Science and City Park Golf Course, as well as gardens, tennis courts and small lakes.

Opus Northwest offers home-hunters rides atop cranes to check out unencumbered views above the seventh floor, and those who partake are often surprised, said Menefee, who plans another ride-to-the-top crane event on Saturday, April 29.

"When people see the park, the downtown skyline and the mountains, they're blown away," Menefee said. "They say, 'Holy cow, I didn't know this was such a nice view.'"

The target market for home buyers at The Pinnacle at City Park South includes empty-nesters who want "lock-and-leave lifestyles," many of whom have grandkids who'll enjoy the park, zoo, golf course and other features, Menefee said. Young professionals who want to jog, bike, throw Frisbees or attend concerts in the park also are likely purchasers.

The residences at City Park are going in where Mercy Hospital once stood, and most neighbors have welcomed the development, said Denver City Councilwoman Elbra Wedgeworth, who represents District 8 and the City Park neighborhoods.

"This is the second abandoned hospital project that I had to deal with," said Wedgeworth, who has spent years working to make improvements in the area. "Now we're looking at at least two more developments in the next year or two."

Wedgeworth said Menefee and Opus Northwest held dozens of meetings with neighborhood groups such as the South City Park Neighborhood Association to address everything from noise to traffic concerns.

"That type of outreach has set a benchmark for other developers," Wedgeworth said. "I'm an East Side girl, and I think you have to protect the integrity of the neighborhood but also support development. It's a partnership situation."

Wedgeworth is pleased that restaurants, hotels and other businesses have taken notice of the new development and are making improvements, as are homeowners in historic neighborhoods that date back to the silver boom of the late 1800s.

The Tattered Cover bookstore is relocating near City Park, which is an added bonus for home buyers such as Hart. The Pinnacle condo designs and other features are obviously important factors, she said, but she's envisioning time riding her bike, inline skating when she feels brave and strolling with her grandchildren in the park.

Ellett still can remember house-hunting with her mother for her contemporary urban loft near Commons Park, which features exposed concrete ceilings, modern finishes -- and a short walk to work.

"I knew immediately when I walked in that this was the place," Ellett said.

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