Orangetheory operated at the 2770 E. 2nd Ave. building until late last year. (Thomas Gounley/BusinessDen)
The Clayton Lane redevelopment project in Cherry Creek just got a little bit bigger — and a new name.
The three firms behind the project — Denver-based BMC Investments, L.A.-based Prism Places and real estate giant Invesco — bought the building at the southwest corner of 2nd Avenue and Detroit Street last week, paying $14.25 million, according to public records.
The two-story 2770 E. 2nd Ave. structure is home to two retail tenants, including fishing retailer Orvis. The fitness chain Orangetheory closed a location there in November.
Matt Joblon
The firms plan to eventually demolish the existing structure and build an eight-story apartment building that will have 80 units and 5,400 square feet of retail space, BMC CEO Matt Joblon told BusinessDen.
The project will be part of efforts to redevelop Clayton Lane, an existing mixed-use property that includes a vacant Sears, which will also be demolished and replaced with an apartment building. The 2770 E. 2nd Ave. structure is adjacent to buildings within Clayton Lane.
With the new addition, however, the firms have a new name for the whole project: Cherry Lane.
Invesco has owned Clayton Lane for years. Last year, the firm tapped BMC and Prism to lead the redevelopment effort. Joblon said the plan from the start was always to rebrand the portion that was redeveloped, saying the vacant Sears and an unappealing parking garage had created “a lot of negative sentiment” about Clayton Lane.
“We were creating a destination within that project … We wanted it to have its own identity,” he said.
BMC, Prism and Invesco previously planned only to redevelop the portion of the project west of Clayton Lane, the privately owned street that is the project’s namesake. Last week’s purchase, however, is part of a broader plan to add a second phase to the project, affecting east of Clayton Lane.
An aerial view showing the footprint of Phase I and Phase II redevelopment of Cherry Lane, the mixed-use site known up to this point as Clayton Lane. (Courtesy Tryba Architects)
Phase I is expected to break ground this December. Plans call for the former Sears to be demolished and replaced with an approximately 404-unit apartment building with ground-floor retail. Existing retail spaces in buildings along 2nd Avenue and Clayton Lane will be redeveloped. The firms also want to demolish the Crate & Barrel building at 101 Clayton Lane and construct a new retail building, although Joblon said he’s still in talks with the retailer.
All told, there’s about 130,000 square feet of retail space involved in Phase I, Joblon said. The redevelopment won’t affect the existing Whole Foods store at 2375 E. 1st Ave. or its surface parking lot.
Phase II, which will involve the work east of Clayton Lane, likely won’t kick off until 2027 and should wrap up the following year, the firms said. It will include the new apartments where Orvis sits, as well as renovating the existing retail space. That includes the retail space in front of Sage Hospitality’s Hotel Clio, although the hotel itself won’t undergo changes. In total, Phase II will involve about 52,000 retail square feet.
“The second phase gives us the ability to connect three city blocks within Cherry Creek North,” Prism Places founder and CEO Stenn Parton said in a statement. “Our plan, by connecting retail across Clayton Lane, is to create one of the most dynamic retail and mixed-use environments in the country.”
The retail renovations will include creating smaller units, which are more in demand, as well as higher-end finishes.
Joblon declined to discuss potential tenants but has previously said a premier fitness brand will likely take 30,000 square feet. He’s linked to the gym chain Equinox, which doesn’t currently operate in Colorado.
The 2770 E. 2nd Ave. building was sold by the Leventhal family, which had owned it for decades, records show. Joblon said he’s known them for years and been something of an informal adviser when the family was considering possible deals to sell.
“That high profile of a corner, they are approached all the time,” he said.
Joblon has developed numerous projects in Cherry Creek, from hotels to office buildings to apartment complexes. He’s lured tenants such as SoulCycle, Le Bilboquet and Sweetgreen. But he said he wasn’t initially interested in the Leventhal’s property himself because of the small lot size — one-third of an acre, property records show.
“We can’t commit all those resources on a small deal,” he said. “We have to be doing larger deals.”
A previously released rendering of the Cherry Lane redevelopment. (Courtesy Tryba Architects)
But Joblon said his mind changed when he saw the interest in what is now Phase I of Cherry Lane. His firm and Prism approached Invesco, which was willing to contribute its retail space on the east side of Clayton, which brought the planned redevelopment to the doorstep of the Orvis building anyway.
“The demand for Phase I on retail — there’s so much demand for it we need a Phase II,” he said.
“To assemble a whole block again — I feel very lucky.”
Cherry Lane is the second-biggest redevelopment in the works in the Cherry Creek neighborhood. The first is across the street, where Denver-based East West Partners is preparing to replace the west side of the Cherry Creek Shopping Center with seven buildings — a project that likely won’t wrap up until 2033.
Orangetheory operated at the 2770 E. 2nd Ave. building until late last year. (Thomas Gounley/BusinessDen)
The Clayton Lane redevelopment project in Cherry Creek just got a little bit bigger — and a new name.
The three firms behind the project — Denver-based BMC Investments, L.A.-based Prism Places and real estate giant Invesco — bought the building at the southwest corner of 2nd Avenue and Detroit Street last week, paying $14.25 million, according to public records.
The two-story 2770 E. 2nd Ave. structure is home to two retail tenants, including fishing retailer Orvis. The fitness chain Orangetheory closed a location there in November.
Matt Joblon
The firms plan to eventually demolish the existing structure and build an eight-story apartment building that will have 80 units and 5,400 square feet of retail space, BMC CEO Matt Joblon told BusinessDen.
The project will be part of efforts to redevelop Clayton Lane, an existing mixed-use property that includes a vacant Sears, which will also be demolished and replaced with an apartment building. The 2770 E. 2nd Ave. structure is adjacent to buildings within Clayton Lane.
With the new addition, however, the firms have a new name for the whole project: Cherry Lane.
Invesco has owned Clayton Lane for years. Last year, the firm tapped BMC and Prism to lead the redevelopment effort. Joblon said the plan from the start was always to rebrand the portion that was redeveloped, saying the vacant Sears and an unappealing parking garage had created “a lot of negative sentiment” about Clayton Lane.
“We were creating a destination within that project … We wanted it to have its own identity,” he said.
BMC, Prism and Invesco previously planned only to redevelop the portion of the project west of Clayton Lane, the privately owned street that is the project’s namesake. Last week’s purchase, however, is part of a broader plan to add a second phase to the project, affecting east of Clayton Lane.
An aerial view showing the footprint of Phase I and Phase II redevelopment of Cherry Lane, the mixed-use site known up to this point as Clayton Lane. (Courtesy Tryba Architects)
Phase I is expected to break ground this December. Plans call for the former Sears to be demolished and replaced with an approximately 404-unit apartment building with ground-floor retail. Existing retail spaces in buildings along 2nd Avenue and Clayton Lane will be redeveloped. The firms also want to demolish the Crate & Barrel building at 101 Clayton Lane and construct a new retail building, although Joblon said he’s still in talks with the retailer.
All told, there’s about 130,000 square feet of retail space involved in Phase I, Joblon said. The redevelopment won’t affect the existing Whole Foods store at 2375 E. 1st Ave. or its surface parking lot.
Phase II, which will involve the work east of Clayton Lane, likely won’t kick off until 2027 and should wrap up the following year, the firms said. It will include the new apartments where Orvis sits, as well as renovating the existing retail space. That includes the retail space in front of Sage Hospitality’s Hotel Clio, although the hotel itself won’t undergo changes. In total, Phase II will involve about 52,000 retail square feet.
“The second phase gives us the ability to connect three city blocks within Cherry Creek North,” Prism Places founder and CEO Stenn Parton said in a statement. “Our plan, by connecting retail across Clayton Lane, is to create one of the most dynamic retail and mixed-use environments in the country.”
The retail renovations will include creating smaller units, which are more in demand, as well as higher-end finishes.
Joblon declined to discuss potential tenants but has previously said a premier fitness brand will likely take 30,000 square feet. He’s linked to the gym chain Equinox, which doesn’t currently operate in Colorado.
The 2770 E. 2nd Ave. building was sold by the Leventhal family, which had owned it for decades, records show. Joblon said he’s known them for years and been something of an informal adviser when the family was considering possible deals to sell.
“That high profile of a corner, they are approached all the time,” he said.
Joblon has developed numerous projects in Cherry Creek, from hotels to office buildings to apartment complexes. He’s lured tenants such as SoulCycle, Le Bilboquet and Sweetgreen. But he said he wasn’t initially interested in the Leventhal’s property himself because of the small lot size — one-third of an acre, property records show.
“We can’t commit all those resources on a small deal,” he said. “We have to be doing larger deals.”
A previously released rendering of the Cherry Lane redevelopment. (Courtesy Tryba Architects)
But Joblon said his mind changed when he saw the interest in what is now Phase I of Cherry Lane. His firm and Prism approached Invesco, which was willing to contribute its retail space on the east side of Clayton, which brought the planned redevelopment to the doorstep of the Orvis building anyway.
“The demand for Phase I on retail — there’s so much demand for it we need a Phase II,” he said.
“To assemble a whole block again — I feel very lucky.”
Cherry Lane is the second-biggest redevelopment in the works in the Cherry Creek neighborhood. The first is across the street, where Denver-based East West Partners is preparing to replace the west side of the Cherry Creek Shopping Center with seven buildings — a project that likely won’t wrap up until 2033.
