Dive Brief:
- New York City-based Greenwich Realty Capital has submitted site plans with the city of Denver for the development of an 81-story, $371 million residential and hotel high-rise in the downtown area, according to The Denver Post. If completed, the tower would be the tallest in Denver, beating current titleholder Republic Plaza by nearly 300 feet.
- The project, currently named Six Fifty 17, would include a lobby restaurant and bar on the first two floors, 10 stories of parking and then a 12-story hotel with meeting space, a spa and fitness center and an outdoor pool. A 52-story residential component would sit on top of it all, with eight floors of that space dedicated to penthouse units and five floors of mechanical and equipment rooms spread throughout the building's 705,045 square feet.
- Developers haven't issued details like how many for-rent or for-sale units would make up the residential piece or how many hotel rooms the building will offer. The structure's proposed floor-area ratio of 20 to one is the maximum under the city's applicable zoning regulations. The project is still in the preliminary stages, but Greenwich Realty has pegged June 2019 as the tentative construction start date.
Dive Insight:
Hotels are often part of the mixed-use aspect of urban developments and, according to Reporter Newspapers, their inclusion can benefit all project players. The name recognition of a known brand can boost a development's profile, while proximity to downtown areas enable hotels to tap into a ready supply of customers. The corporate tenants and residents of a building with a hotel component can even take advantage of potential discounts, amenities and the convenience of having lodging so close by.
As for Denver, the new high-rise will add to the building boom that's been taking place in the city for the last few years if and when it is completed. As of Oct. 7, the year-to-date value of the city's construction permits had skyrocketed past $3 billion and was on track to beat 2016's record $3.65 billion. For the full year 2017, permit activity grew 17% year-over-year, according to the Colorado Real Estate Journal.
Interestingly, a new roofing regulation could have been behind at least some of the growth in permit activity. The Green Roof Ordinance, a relatively strict green roof law, went into effect in Denver on Jan. 1, and some have speculated that there was a December rush on roof permits for those wanting to avoid the regulation's requirements.
