(To read more on the multifamily market, click here.)
DENVER-Opus Northwest, which for years has been one of the biggest developers in Denver and the regional office for the Minneapolis-based Opus Group, plans to start marketing a 22-story, $55-million second phase of the $160-million Pinnacle at City Park South in May.
Opus and development partner Boulder-based Income Property Specialists will then kick off construction of the second tower this fall, about three months ahead of schedule. The development is the anchor for the redevelopment of the former Mercy Hospital site between 16th and 17th avenues and St. Paul and Fillmore streets.
Opus is able to kick off construction earlier than expected--a rarity for major construction projects--because pre-sales have been far stronger than expected in the first phase. The first phase includes a 27-story tower, in which 80 of the 139 condo units and nine of the 18 townhome units already have been sold, says Scott Menefee, senior vice president of development for Opus Northwest. He assures GlobeSt.com that he is not using sales as a synonym for reservations.
"These are hard numbers, where people have put 10% down in non-refundable deposits," he tells GlobeSt.com. One penthouse unit sold for more than $2.3 million, he says, while the least expensive units sold for about $270,000. "We're actually out there digging the hole."
He says one buyer is a retired executive from a big accounting firm in Minneapolis who is moving to Denver. "He saw our Grant Park development in Minneapolis, which is very similar to this one, and decided to buy a unit here," Menefee tells GlobeSt.com.
Units in the smaller tower will be larger than in the first, which is credited to resident feedback. "We learned a lot from the first phase," he tells GlobeSt.com. "A lot of our target market was correct. But we found that a lot of people wanted bigger homes. So we're going to end up with about 105 units in the second tower, instead of the 122 or so we originally planned." He says he currently has a waiting list of 40 people who want units of at least 2,300 sf. Both towers will open in 2008, he says.
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