A Connecticut-based buyer likes the potential it sees in Northglenn.
An affiliate of Hutensky Capital Partners of Hartford, Connecticut, paid $48 million for Northglenn Marketplace, a 439,000-square-foot retail center on a 55-acre site at Interstate 25 and 104th Avenue.
“This represents a great opportunity to invest in a healthy retail market and our fund has the expertise to help the property reach its full potential,” said Brad Hutensky, CEO of HCP. “We are also excited about the opportunity to work with the city of Northglenn and our retail partners to create a revitalized center.”
HCP has hired Evergreen Development, the Mulhern Group, SullivanHayes Brokerage and Kimley-Horn to assist in the stabilization and redevelopment of the center.
“Evergreen is thrilled to work with HCP and its team on planning and executing the redevelopment of Northglenn Marketplace,” said Tyler Carlson, managing principal, Evergreen Development. “We look forward to working closely with the city and the urban renewal authority in partnership to reinvigorate this important asset and to restore its relevance in today’s ever-changing retail environment.”
The marketplace is home to tenants including Bed Bath & Beyond, Ross Dress for Less, Office Depot, PetSmart, JoAnn Fabrics and Lowe’s Home Improvement. It was 40 percent vacant at the time of sale.
HCP’s primary goal with Northglenn Marketplace is to refresh, rebrand and reenergize the center. It plans to fill empty storefronts with a mix of retail, restaurant and entertainment related tenants.
Courtney Keys of SullivanHayes is handling leasing of the center, which has approximately 20 vacant spaces totaling 152,000 sf from 1,000 to 32,365 sf.
Phased work is expected to start in 2018 with completion in 2020. The first phase will include stabilizing the center and attracting new tenants as well as rebranding the center.
The marketplace has seen several retailers relocate or close nationally during the last several years. “I really have to salute the current businesses in the center for their loyalty to Northglenn,” said Debbie Tuttle, manager of economic development for the city and executive director of the Northglenn Urban Renewal Authority. “This will be a destination location where families and visitors will want to be. The new center will become a part of their lives for shopping, restaurants and entertainment.
“This is the No. 1 priority for the City Council and is the highest sales tax generator for the city. The retail market is changing rapidly with ‘right sizing’ and online sales. We want to create a ‘sense of place’ where families and visitors will want to shop, eat and enjoy entertainment and other amenities,” she added.
According to public records, HQ8 10410 10450 Melody Lane LLC (LNR Partners) sold the center.
The original 830,000-sf mall, owned and developed by Jordon Perlmutter, opened in 1968. Perlmutter sold the mall in 1987 and, in 1998, purchased the property again. He redeveloped the property into a 650,000-sf power center in 2001, 439,000 sf of which HCP owns. Perlmutter sold it in 2006.
