Construction to Start on Cherry Lane Development in Cherry Creek North
BMC Investments, Prism Places and Invesco closed on debt financing for the project, which will transform the long-vacant Sears site in Cherry Creek North
BMC Investments (“BMC”), a Denver-based vertically integrated real estate firm, in partnership with Los Angeles investment firm Prism Places, and Invesco Real Estate, the $85 billion global real estate investment business of Invesco Ltd. (NYSE: IVZ), is set to start construction on Cherry Lane, the largest redevelopment site in Cherry Creek North.
The partnership closed on debt financing for construction, provided by Bank OZK, for phase one of the Cherry Lane redevelopment. Cherry Lane’s construction will involve demolishing the vacant Sears store and Crate & Barrel building, as well as converting the service alley and parking garage into a highly refined mixed-used development that will bring transformative impact to the Cherry Creek North submarket
“Cherry Creek North has undergone a remarkable transformation over the last 10 years, evolving into one of the most dynamic mixed-use destinations in the country. When Cherry Lane is completed, we will have created the anchor for Cherry Creek, setting a new standard for high street retail, restaurants, elevated living and community gathering spaces. This project will not only enhance the neighborhood’s vibrancy and solidify its reputation as a world-class destination, but also will set it up for long-term success,” said Matt Joblon, founding partner and CEO of BMC Investments.
“Cherry Creek is a dynamic community, and we have the opportunity to finally meet its retail needs with a diverse, street-level project boasting must-have shopping, services and dining from both local and national tenants,” said Stenn Parton, founder and CEO of Prism Places. “This first phase of Cherry Lane marks the beginning of a transformative addition to Cherry Creek – a place where its residents can soon discover, linger and connect.
Cherry Lane will comprise 379 multifamily units and 59,063 square feet of office space, as well as 132,665 sf of sought-after high-end ground floor, second-floor mezzanine and rooftop retail and restaurant spaces within a vibrant, walkable urban core.
As leading retailers increasingly prioritize safe, amenity-rich and walkable areas, Cherry Creek North remains a top retail destination. Cherry Lane looks to capitalize on the submarket’s strong fundamentals, leasing trends and customer base with the introduction of new retailers to the market, having received significant interest from storefronts on Fifth Avenue in New York City and Rodeo Drive in Beverly Hills. Cherry Lane is set to become the first project in Cherry Creek North with the critical mass of retail and restaurant square footage, enabling the merchandising of up to 35 iconic shopping and dining concepts. Sam Zaitz of JLL and Julie McBrearty of SullivanHayes are leading leasing of the retail space.
Abatement activities are underway at the site, bounded by Clayton Lane and First and Second avenues, where the demolition of the Sears building will start this month.
Cherry Lane Project Team Leaders
Tryba Architects designed Cherry Lane, which is being built by PCL Construction. Michael Hsu Office of Architecture is providing retail interior and exterior design services.
All entitlements are in place and final approval of the formal site plan from the city is expected by May with project delivery in October 2027.
About BMC Investments: BMC Investments is a highly disciplined, vertically integrated real estate investment firm generating industry-leading returns through acquisition, development and management of various property types throughout the U.S. BMC focuses its investment strategy on creating long-term value in its assets and generating strong risk-adjusted returns. The company is able to outperform its peers by procuring attractive investments in its areas of focus; utilizing a measured and disciplined investment process with rigorous focus on risk management; leveraging best-in-class operating systems and processes; and attracting, retaining and developing great people. To learn more, visit www.bmcinv.com.
About Prism Places: Prism Places provides a new perspective on commercial real estate grounded in the insight that assets should generate value over their lifetime. This value creation is the result of an aligned vision, accountability, and active participation in the day-to-day operations of each property. Prism brings a robust and integrated operating platform married with a sense of urgency, creativity, and discipline to the daily experiences on property.
Prism was founded by Stenn Parton who brings more than 15 years of experience in real estate development, acquisitions, leasing, and brand building. Prism provides a fully integrated team with a dynamic understanding of the current market and consumer demands blended with the know-how to transform a property into a place that meets today's market and cultural demands and actively operate each investment with a diligent focus on creating value for generations, in short – places with purpose.
About Invesco Ltd.: Invesco Ltd. (Ticker NYSE: IVZ) is a global independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. Our distinctive investment teams deliver a comprehensive range of active, passive and alternative investment capabilities. With offices in more than 20 countries, Invesco managed USD 1.8tn in assets on behalf of clients worldwide as of 30 November 2024. For more information, visit www.invesco.com/corporate.
About Invesco Real Estate: Invesco Real Estate is a global real estate investment management business with $85 billion in real estate assets under management, 607 employees and 21 regional offices across the U.S., Europe and Asia as of June 30, 2024. Invesco Real Estate invests across the risk return spectrum, from core to opportunistic; in equity and debt; listed and direct; locally and globally. Invesco Real Estate is a business name of Invesco Advisers, Inc., an indirect, wholly owned subsidiary of Invesco Ltd.
About Bank OZK: Bank OZK (Nasdaq: OZK), through its Real Estate Specialties Group (RESG), provides financing on commercial real estate projects throughout the nation. RESG is considered a preeminent, market-leading construction lender focused on senior secured financing for a variety of property types including mixed use, multifamily housing, condominiums, office, hospitality, life sciences, industrial and retail. For the five years ended December 31, 2024, RESG originated approximately $40.97 billion in new loans. For more information, visit www.ozk.com.
