5040 Bright is a proposed 182-unit workforce, TOD multifamily development to be located on a 1.22 acre tract at 5040 Brighton Blvd., Denver, CO, currently occupied by European Auto Parts and Repair. It is on the north boundary of the City of Denver and the National Western Stock Show development, which is a $1B+ redevelopment/tourist destination. Brighton Blvd is a major north south arterial that links the site to the hip RINO neighborhood and downtown. So, it is within 4 blocks of I-70 and RINO’s dining, office, entertainment and living options and only 1 block from the new 48th Ave. and Brighton rail station which links directly with downtown’s Union Station, the heart of Denver.
The site is zoned I-B (industrial), but it is master-planned for Regional Center which allows verticality, varied uses and lesser parking requirements.
The nature and timing of the entitlements required are as follows, from this date: 6 months (9-23-22) to get the re-zoning and plan/plat approved.
The developer has built in Colorado so is familiar with the area. He has built projects of similar size in other states. With the strong job growth and increasing lack of affordability of both homes and luxury rentals, he has kept his eyes open for new opportunities. The average home price in the City of Denver is $600,000 now. Tech, energy and education jobs keep moving into the area. The 2% current rental rate growth is sure to increase as the population, job growth and lack of affordability pressures increase in the County.
The small, existing building on the development site will be razed for the subject’s new construction, which will occupy the entire site. The construction will be a 3-story garage with 5 stories of wood-frame units above. There will be both surface and paid garage parking. A dog park area, benches, on a 3rd floor courtyard facing the mountains to the west, on-site leasing office and a community/fitness will exist.
Thousands of jobs will be created in the area over the next 4 years and housing is needed for its workers. The Developer will be working with the City to design a site plan and elevations that fits the needs of all parties.
Amenities include the above amenities, high-end appliances, 9-10 foot ceilings, in-unit washer/dryers, ceiling fans, and central heat/air conditioning. The design will complement the surrounding neighborhood. air-filtering systems, large outdoor area(s), stringent sanitation practices, including testing, if necessary, and touchless technology will be in place to address any pathogen crisis.
The developer will target 8% of the units to renters at an average of 60% or less of AMI, as part of the new inclusionary Denver policy. The land use agreement shall be for a term of 60-99 years. The rental rates are shown below:
Studio: $1100 $1350
1BR: $1150 $1700
2BR: $1400 $2650
The rents are consistent with other luxury rents in the market. The latest reports have the overall vacancy in the area at 5% and rent growth in the submarket has been 3-4%.
Project costs will total approximately $58 million dollars, to be made possible by owner’s equity, tax abatement and a permanent/construction loan. The project developer is Garrison L. Hassenflu. Mr. Hassenflu is Managing Member of MW Development Enterprises, LLC, the development entity. He is also President of Garrison Management Company, the property’ property manager. These companies along with other affiliated companies make up the umbrella entity, Garrison and MW Companies (www.garrisoncompanies.com). He has over twenty five years of experience in development, having developed over $140,000,000 in affordable and mixed income living units totaling over 1300 units in six states. Currently, he has a portfolio of seven projects totaling approximately 300 apartment units that he has built and managed in the last twenty years.
The project will be designed by Architecture Belgique, Salt Lake City, UT, and construction managed by an area general contractor.
We expect an April 1, 2023 construction start with a June 15, 2024 completion. The closing on the land will be on or before 10/31/22, but the seller gets 5 months to remove his business property. Of course, during that time, we will be readying construction documents and working on permits. We expect absorption of 30 units per month on average.