Real Estate Forum

new economy is technology, new media,
professional business services, healthcare,
biosciences and higher education, so we try
to relate to the reality of this new economy
and build to support it. That means hous-
ing, retail and amenities.”
The second-largest force behind this
urban living dynamic is the 75-million-strong
baby boomer cohort. As these empty nesters
downsize and retire, some will choose the
ease and flexibility of renting, and return to
the city. “They’re tired of driving around the
suburbs, and they’ve traveled to Europe and
to other cities and are beginning to see that
our cities are quite livable,” McIlwain says.

By far, the strongest urban markets are
New York City and Washington, DC,
McIlwain says. Boston and San Francisco
also remain competitive, as do Downtown
Los Angeles, Seattle and Portland. Dallas,
Denver and Salt Lake City also offer attrac-
tive urban centers, and “Brooklyn is one of
hottest cities in America.”
What they all have in common are strong
mass transit, strong job growth and local
government plans and support for more
compact redevelopment, particularly
around transit. These cities are rebounding
fastest from the recession. “They’re areas
where the younger folks want to be because

Wood Partners LLC and East West Partners are teaming up to develop Alta City House, a $62-million, 280-unit luxury multifamily development in Denver. Located in the heart of the Union Station/Riverfront Park redevelopment, the project will start construction this fall with units opening in the first half of 2014.

that’s where the jobs are,” McIlwain says.

Don Fosseen agrees. He’s chief invest-
ment officer of Seattle-based Pinnacle Family
of Cos., whose development arm has 2,000
units under construction in urban or infill
locations in Downtown Seattle. “It’s all about
jobs,” he says. “Seattle is a youth-attractor
city, a well-educated city and has a lot of suc-
cessful corporate headquarters like
Microsoft, Amazon and Starbucks. Young
well-educated people are moving to these
cities, like San Francisco, New York City and
Dallas. They’re finding jobs and renting
apartments either within walking distance of
their jobs or near transit.”
In Downtown Seattle, Pinnacle is under
construction on the Post, a 16-story, 208-
unit waterfront development next to

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