Colorado Real Estate Journal - May 1, 2019
A mixed-use community with a performing arts venue center stage is shaping up for AT&T’s former site in Denver’s ElyriaSwansea neighborhood. Smokestack 40, a 14.6-acre redevelopment encompassing an approximately 235,000-square foot call center at 2535 E. 40th Ave., is planned to include more than 700 multifamily units geared largely to artists, teachers and others being squeezed by Denver’s high housing costs. Tom and Brooke Gordon of Iselo 40th Avenue LLC, which bought the property last year, hope to receive rezoning approval this month to add multifamily uses to the site, which is in an opportunity zone. Right now, all the units are envisioned as rentals, but that could change once the U.S. Treasury provides more clarity regarding opportunity zone investment, Tom Gordon said. The Gordons provided Wonderbound, a contemporary ballet company they support, with space in the existing building and from the outset have envisioned the property as the nonprofit’s permanent home. They are setting aside 50,000 sf of the building for a 500-seat performing arts venue with studio spaces for rehearsals. “The performing arts center is a focal point for what the vision is for the entire property,” Gordon said. “The performing arts center and Wonderbound are really a place-making for the community we will be developing on those 14 acres. This collaboration is very important to us.” The building, which includes a second floor that brings its overall square footage to around 300,000, actually consists of two connected structures: an original concrete barrel-roof building and an addition. The Gordons plan to separate the two buildings and create a pedestrian “street” with an existing smokestack at one end, thus the Smokestack 40 name. Besides the performing arts center, the northernmost building will have commercial space and workforce housing. “We’ve committed to provide eight artist live/work spaces at much below market (rents),” said Gordon, explaining artists could then have a studio or gallery on the first floor with a one-bedroom apartment above. The original building is planned for higher-end “mini-townhomes” incorporating the barrel roof, along with 20,000 to 25,000 sf of commercial space designed for smaller users. Two new buildings – neither more than three stories – are planned for construction on existing parking lots on the property, one with commercial on the ground floor. The other will be developed under an agreement with the city to provide 70 units of affordable housing, including 30% two-bedroom units, to households making 60% or less of area median income. Throughout all 700-plus units, there will a variety of unit sizes and styles “so that we can have diversity,” said Gordon. “It’s not just all going to be for single people or young couples. We want to have space where families will want to live.” Sprocket Design-Build is designing Smokestack 40. The Gordons hope to be able to start the first phase of development, repurposing of the existing building, by the third quarter. “We’re hoping that people in the community who, because of development that’s occurred in this entire area may find themselves being displaced, will have a place to live,” Gordon said. “On the commercial side, by not bringing in large chains but trying to keep the businesses there focused on the needs of people, whether it be restaurants or coffee shops, clothing stores – whatever it is – there are a lot of things we have planned that will enhance the services available to the community.”