By Celeste Tanner, Co-Founder and Director of Development at Confluent Development
2021 has been a year like no other. In the wake of a global pandemic, communities and businesses have encountered unprecedented challenges, but also unique opportunities. Against all odds, Denver’s real estate community has not only survived, but thrived in many ways.
While Denver was already benefiting from the redistribution of the resident and business population before COVID, this trend only accelerated during and after the pandemic with no signs of stopping. The city quickly became an emerging region to watch as it gradually evolved into a leading market, a market that attracted millennials, young professionals and families who decided to migrate out of major metropolitan areas and cities. densely populated cities in search of space, and a new way of life.
Developers had their eyes on this trend long before the pandemic wave of new residents, and now, there’s no better time to invest in Denver. There is a significantly increased level of activity and institutional concentration in the market. By planting a flag across the full spectrum of asset classes in this region, this incoming demand will be met with the most relevant opportunities.
By focusing on our various offers, Confluence development demonstrated a widespread commitment to this city and surrounding communities. As we take a look back at this year, we reflect on our milestones and look forward to Denver’s vision for 2022.
Invest in the office
It was almost impossible to predict what the future of work would look like beyond our home offices and Zoom meetings. However, two fundamental principles of our professional lives would remain the same and would arguably have become more important than ever: collaboration and community.
Our Vectra Bank partners shared this vision, and together we celebrated a New Year and the grand opening of the new Vectra Bank Business Center on I-25 and Belleview Station. The three-year, multi-million dollar project represented a significant real estate commitment and investment during an uncertain time. The distinctive architectural design of the Vectra Corporate Center will offer expansive views, the latest advancements in energy efficiency, sustainability and green building, collaborative spacing for employees, cutting-edge technology and the utmost attention to health, to well-being, safety, accessibility and security.
Interest in the industry has remained strong and stable
As Denver continues to attract businesses out of state, industrial property demand is expected to continue to support this trajectory. The city has several undeveloped plots of land and empty buildings that are well positioned to become redevelopment or infill opportunities to allow product types that are more concentrated, accessible and surrounded by a strong downtown employee base. .
One of our industrial projects with Invesco Real Estate, Central Park Business Center, will accomplish just that. Located at the intersection of I-70 and Central Park Boulevard, the 243,950 square foot infill industrial campus features Class A buildings with a freeway frontage and easy access for customers and employees, a rare find in Denver. Site visibility has the potential to drive sales growth for future tenants, while its central location will optimize product distribution and attract a single large user or multiple mid-size tenants.
Introduction of a global health standard in residences for the elderly
In the retirement home industry, many projects were delayed or stopped altogether during the pandemic. Before the pandemic, our team, alongside MorningStar Senior Living, drew up the plans for a new concept of retirement home: The Whole Health Standard. This comprehensive and holistic design incorporates the latest protections for the physical health of residents while advancing functionalities essential to mental health. The concept has been rolled out seamlessly in new properties and rearranged in existing properties.
The first project to be intentionally designed based on the Whole Health Standard is MorningStar at Observatory Park, located in historic Denver Observatory Park. Scheduled for completion by summer 2022, MorningStar at Observatory Park will offer 81 approved assisted living and memory care units that will incorporate the latest healthy building technologies while improving comfort and quality. life of residents.
This one-of-a-kind design respects health and safety protocols, while maintaining a sense of home, hospitality, community, joy and well-being for its residents. Although challenges are not always predictable, this standard helps ensure safety measures for existing, current and future health challenges to come. This revolutionary milestone is a testament to the quality of the community, but also to the solid and proven track record of our collective team, its commitment to collaboration and mutual trust.
Mixed use is on the rise
Denver’s population continues to grow with new residents moving from high-cost markets to Colorado to get more for their money with bigger homes, backyards, and outdoor activities. This change in lifestyle has created a need for well-balanced areas that provide resources and entertainment options for lifestyles that are both affordable and sophisticated.
The mixed-use Exchange at Boulevard One redevelopment has shown significant momentum amid the pandemic, with rental activity remaining strong as the project is now almost fully leased to a healthy mix of retail, fitness, residential tenants. catering and health services. With our project partners at Kelmore Development, we notably welcomed two key tenants, Target and Clark’s Market.
In October, we celebrated the grand opening of the Target Small Store with our project partners. Over the past 20 months, our team has remained focused and diligent, working in a rapidly changing market to ensure the primary tenant has met completion goals and could open in time for the holiday season to support this dynamic neighborhood. In 2022 and beyond, we anticipate that this personalized project will seamlessly become an integral part of the fabric of the Denver Lowry community, continuing to meet the preferences and needs of its residents.
A look at 2022
As we wrap up another year, we’ve tapped into a new asset class to ensure our offerings remain diverse for every user. In December 2021, Confluent began expanding our multi-family offerings. At Platt Park, Carraway on Penn is showcasing a 42-unit boutique-style apartment community to help meet the incoming demand for Denver housing among millennials and Gen Zs looking for an upscale, sophisticated apartment .
Having completed over eight million square feet of development totaling $ 1 billion in Colorado alone, we’re proud to say that our team has quickly grown into a leading developer in the state. Active in various asset classes, Confluent Development is stronger than ever and we look forward to a promising year 2022.
Celeste Tanner is the co-founder and Director of Development of Confluent Development. With nearly 20 years of industry experience, she created a full-service real estate investment and development firm to bring a new vision of development to life within the industry. In her role, she leads the execution of the business through all phases of real estate development, successfully delivering personalized and complex projects that create significant value in their respective communities. Since the company was founded in 2014, Celeste has overseen over $ 1.5 billion in development projects across the organization’s diverse portfolio of over 100 industrial, office, retail development projects. , mixed-use and senior housing.