Vanessa Abrahamson Blog: BMC is among the few looking to open an office in Cherry Creek

Tuesday, October 25, 2022

BMC is among the few looking to open an office in Cherry Creek

BMC Investments Matt Joblon isn’t taking bets on the timing of the company’s latest development in Cherry Creek North, but he expects it to be one of the last Class A office buildings to be built in the neighborhood for some time.

With limited remaining locations, BMC is one of a select few developers looking to expand Cherry Creek’s office market. The proposed 100,000 square foot building at 235 Fillmore will have six floors with office space over 9,540 sf of retail space on the ground floor.

“If you stuck a needle in the middle of Cherry Creek North, it would probably be here,” he commented Peter Stab by Newmark Knight Frank, who markets the building for advance release. At least before the pandemic, the building attracted interest from finance and real estate companies looking for space in a narrow submarket, especially for new products.

“If a decent-sized tenant wants to live in Cherry Creek, their options are pretty limited and they have to look at new construction,” Staab said.

Even before the coronavirus came into play, Joblon said he would not construct the building on a speculative basis and therefore has no construction schedule. “Once we signed a lease with an anchor tenant, we could probably put a shovel in the ground in about 10 months and build it 14 months from the start. I just don’t know when we’re going to sign that lease,” he said.

Besides BMC, Broe real estate group and DZMK 2nd and Adams LLC plan office buildings in Cherry Creek.

“Cherry Creek is a pretty exciting 18 square block area,” said Brian Wagner, who manages DZMK 2nd and Adams. The group is seeking city permits for a 60,000 sf Class A building at Second and Adams Streets. “We were excited about the opportunity and the vision and experience we had, so we jumped in,” he said, adding that there is continued demand for AA office space in the area.

“We are in talks with several potential tenants. We hope to have some leases signed by the time approval is granted. We expected this and still might, but current economic and market conditions are changing daily, hourly, minute by minute so we’ll have to see how that levels out.”

Broe Real Estate Group hopes to break ground on a 75,000 sf office building with first-floor retail outlets at 200 Clayton St. in late summer. A second phase could add an additional 125,000 sf of office space or apartment buildings depending on market conditions.

BREG CEO Doug Wells described the development as a “legacy” project that Broe wants to own long-term.

“Planning for the development of our 200 Clayton project is proceeding as planned,” said Wells. “We believe in Denver and the Cherry Creek North submarket in particular for the long term. While the current health crisis brings uncertainty to all business plans, which may ultimately require adjustments to our prospective project schedule, our commitment to proceed remains unchanged.”

BREG works with The Beck Group on the first phase.

DZMK hopes to receive planning permission for its Second and Adams project by Q3 and complete the building by the end of 2021. I’ll be able to get some leases signed by Q3 and move on,” Wagner said.

“We’re just focused on building an AA office building, doing it well, and finding the right tenants to add value to Cherry Creek.” The five-story building with first-floor retail stores and underground parking will be designed by 4240 architecture. A concept plan is being reviewed by the city.

BMC Investments’ building at 235 Fillmore will feature floor-to-ceiling glass, wood accents, contemporary colors and materials, and sheltered mountain views. A 3,500 sf terrace will be available to the tenant on the third floor and the floor panels will be 12,290 sf. Underground parking offers two spaces per 1,000 sf.

“We plan to have the building 100% valet parked,” said Staab, who markets the building with NKF’s Jamie Gard and Tom Lee.

open studio architecture, who, according to Staab, was “at the forefront of design” is the architect of the project.

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