Centerra’s Promenade Shops, with its history of retail success amid foreclosures and lawsuits, are up for sale – and a Loveland town official hopes the result will offer a chance to seize the opportunity to offer people not only purchases but also experiences.
“Typically, we rely on the landlord or real estate company to be proactive in getting those experiences here,” said Kelly Jones, Loveland’s director of economic development, “but our next strategic plan, which will be rolled out the next week makes us be much more proactive in this space instead of just relying on developers and others to pursue it.
For Loveland, Jones said, it’s “an opportunity for more retail and experiential retail that would be wonderful. People appreciate places where they can go out and not just shop, but experience – like playing pickleball while eating chicken, or a ‘dog club’ where you can bring your dog but also eat and drink We’ve spoken to quite a few parties over the past year and a half that have a lot of thoughts on how they would like it rearranged.
The Denver office of CBRE Advisors lists the sale, though its promotional materials do not mention a sale price for the 493,172-square-foot mall, and company officials would not discuss a price with BizWest. A commercial real estate agent who spoke to BizWest on condition of anonymity said that sometimes fixed selling prices are not set for such projects and the listing agent simply waits for offers.
But its marketing already touts “northern Colorado’s mainstream shopping destination” as already being “dog-friendly” and offering “more than just shopping.” It’s an experience and a gathering place for the community,” the sales verbiage reads. “The unique outdoor experience encourages people to relax, have fun and stay a while.”
Located northeast of the Interstate 25-US Highway 34 interchange, the center is exposed to 140,000 vehicles per day and 58,231 residents live within three miles, with an average household income of $133,627, according to information from CBRE.
The Promenade Shops, the centerpiece of the Centerra mixed-use development, includes major retailers such as Macy’s, Best Buy, Dick’s Sporting Goods and Barnes & Noble, as well as a Metrolux multi-screen cinema, several chain restaurants and numerous small stores with familiar national and regional brands such as Yankee Candle, Banana Republic and Famous Footwear. Of its 93 units, the CBRE brochure says 10 units are available for rent, including one space of 10,485 square feet, as well as two blocks of 10,000 and 7,651 square feet.
The mall’s listing for sale comes just two months after the conclusion of an 11-year legal battle over a partnership deal that went awry in the management and ownership of the mall. It ended with a “Satisfaction of Judgment” notice filed with the US District Court for the District of Colorado.
In May 2021, McWhinney Holding Co. LLLP and related McWhinney entities won a $23.4 million judgment against defendant Terry McEwen, which was amended four months later to add court costs and interest before and after judgment.
This battle began 10 years earlier when McWhinney sued his 50-50 project partners, Poag & McEwen Lifestyle Centers LLC, for their partnership in building and running the Promenade Shops. A series of judgments, appeals and trials followed.
A foreclosure auction took place in May 2021 when a lender attempted to recover nearly $87 million from mall owner DRA Advisors LLC, a New York-based private equity group doing business as from G&I VI Promenade LLC and G&I VI Retail Prom LLC, but there were no auctions.
This was the second time the mall had been seized. The first dates back to 2009, when it was acquired by a Keybank subsidiary for $85 million. DRA Advisors bought the property for $75.5 million months later.
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