Getting your player ready...
High-end house shoppers sometimes compare condominium units in the NorthCreek development to luxury single-family homes, said Christian Anschutz. But there is no comparison, said Anschutz, managing partner of Western Development Group, developer of the $100 million, mixed-use development across from the Cherry Creek shopping center.
“You can’t replicate this in a stick-built, single-family home,” said Anschutz, the son of Denver industrialist, Phil Anschutz.
That is because the concrete NorthCreek enclave is built to commercial real estate standards. “It would be too expensive to build a single-family like this,” Anschutz said. “The only single family home built like this, that I am aware of, was built by Fred and Jan Mayer,” in LoDo.
David Steel, a partner at Western Development, agreed: “Actually, we think (NorthCreek) is over-engineered.”
Units are so solid that barely a sound can be heard from the street, even during mid-day in bustling Cherry Creek North. NorthCreek is between 1st and 2nd Avenue and Detroit and Second streets in the trendy district that includes more than 350 restaurants, bars, coffee shops and stores.
Construction equals green building
And while they did not seek a LEED-rating, the use of concrete, buying local stone for the exterior of the buildings, and a cutting edge heating and cooling system, easily would have gotten NorthCreek a Silver LEED rating, and possibly a Gold or Platinum, according to the developers.
“As you know, you check off things for LEED, and we would even get credit for our location, because of its proximity to public transportation,” said Roy Kline, another partner at Western Development Group. “And the buildings are situated to take maximum benefit from sunlight.”
Indeed, in the new Art Residence, a $3 million, 3,000-square-foot unit in the Courtyard Flats portion of NorthCreek, Anschutz said a number of people have commented that the walk-in closets off the master-bathroom have windows that bring in sunlight.
Despite its lofty price – 20 times the metro Denver average condo price of $150,085 – there is still a market for homes that are that expensive, Anschutz believes.
Still a market for $3 million condo
“Three million dollars is the magic number,” Anschutz said. “We’re still seeing things move in that price range in Denver. When you get to the $11 or $12 million homes in Vail, that’s a different story.”
In 2007 and 2008, units in NorthCreek were flying off the shelf, but sales stalled when the Denver-area and nation fell into a real estate blackhole, the worst housing collapse since the Great Depression of the 1930s.
Western Development unveiled the Art Residence, a contemporary designed unit recently completed by Diamond Homes as a way to display art collections, and renew interest from well-heeled buyers, who are starting to see their fortunes rebound. Richelle Ashmore is the interior designer.
Dog run possible
More than 15 local artists works are displayed in the Art Residence, which includes a 2,000-square-foot rooftop deck. The deck is so solid that the concrete pavers could be removed and replaced with grass and trees, or even a dog run, Anschutz said. One prospective buyer is even considering installing a swimming pool on the deck.
In contrast, he noted that in many high-rise condo buildings, owners are not even allowed to put furniture on their decks for fear that the wind would blow chairs, table and couches to the street below.
Surprisingly strong views
The rooftop deck provides view of the mountains, downtown’s skyline and the graceful lines of the other two residential components of NorthCreek – the Tower Residences and the Brownstones. The views are better than many people think. Kline noted a number of the owners at NorthCreek also have homes in Aspen, with unbelievably gorgeous views of the mountains.
“They don’t buy here for the views,” Kline said. “They buy here for the urban experience, but without the noise and congestion of downtown.”
Or as Anschutz put it: “We joke internally that Cherry Creek North is LoDo for adults.”
Before the real estate crash, one buyer was looking at combining four units in the Courtyard Flats into one unit, giving him more than 12,000-square-feet of living space and 4,000 square feet of deck space. One person familiar with that deal said the prospective buyer backed out of the deal when he was unable to sell his ranch.
Denver’s version of Manhattan
“This is the type of unit you would find in Manhattan,” Anschutz said, during a tour of the Art Residence last week. “But of course, it would be much more expensive in Manhattan. North Creek is really a little village inside of Cherry Creek North.”
Indeed, a quick Google search found a similarly sized unit on the market in Lower Manhattan for $6.95 million. And that New York unit did not include a 2,000-square-foot rooftop deck nor was it in a building that is only a few years old.
“The units (in NorthCreek) are fantastic, and yes, they would cost a lot more in New York City,” said Dee Chirafisi, a co-owner of Kentwood City Properties. “I have a resale there and I love that project.”
Although sales were slow last year at NorthCreek, the Denver-area luxury market in recent months has been the best performing sub-market, although there metro still has more than a two-year supply of unsold luxury homes.
Buyers demand the best
Judy Fahrenkrog, who previously headed the sales team at NorthCreek and recently joined Kentwood City Properties as a broker, spent last Saturday morning with an out-of-state couple that recently bought a unit in the Tower Residences in the development.
“They couldn’t be happier,” Fahrenkrog said. “If you want to be pampered like royalty, NorthCreek is the place to buy.” Much like in the best buildings in Manhattan, and a few in downtown, NorthCreek provides a 24-hour concierge service.
“And we have a world-class kitchen if someone wanted to cook – or more likely have someone come in and cook for you,” Anschutz noted, while standing in the kitchen in the Art Residence, with its Thermador and Wolf appliances.
“Everyone who buys here, expects, and gets the best,” Steel said.
Filling a high-end void
Chris Mygatt, president of Coldwell Banker Residential Brokerage’s Colorado operation, said NorthCreek fills a void in the Denver market. He said he believes the most expensive condo ever sold in Denver – a $4.7 million sale – occurred at NorthCreek in the fall of 2008.
“In the past, the one hole we had in our market was the truly high-end product for the ‘lock and leave,’ buyer,” Mygatt said. “That’s been filled with NorthCreek in Cherry Creek and the Four Seasons downtown. They are two different type of products for the ultra-rich buyer.”
And, yes, the very top of the market – never very deep even in flush times – was dealt a body blow during the recent economic crisis, Mygatt said.
“At NorthCreek, they’ve pretty much kept their prices intact, which has probably cost them some sales,” Mygatt said. “But it is such a spectacular project, at such a great location, I do think they are going to start to see more sales activity.”
Steel noted that all of the buyers at NorthCreek have paid cash, and none of them have any contingencies, such as selling an existing home. An uptick in interest rates means nothing to a buyer at NorthCreek. A unit in NorthCreek is typically not so much of a second home, but a third or fourth home for many of the owners.
“We’re taking a real rifle approach, as far as marketing NorthCreek,” Anschutz said. “People who buy in this price range buy what they want. We have found that our best sales tool is word of mouth from existing owners. So many of our residents see each other in Palm Springs, that we sometimes call NorthCreek ‘Palm Springs East.'”
