LOVELAND – The Promenade Shops at Centerra, with its history of retail success amid foreclosures and lawsuits, is up for sale — and a Loveland city official hopes the result will bring a chance to seize on an opportunity to provide people with not just shopping but experiences as well.
“Typically, we rely on the owner or real-estate firm to be proactive in getting those experiences here,” said Kelly Jones, Loveland’s economic-development director, “but our next strategic plan, to be rolled out next week, has us being much more proactive in this space instead of just relying on the developers and others to go after it.”
For Loveland, Jones said, “it’s “an opportunity for more retail and experiential retail that would be wonderful. People enjoy places they can go out and not just shop but have an experience as well — like playing pickleball while eating chicken, or a ‘dog club’ where you can bring your dog but also have food and libations. We have talked to quite a few parties in the last year and a half who have lots of thoughts on how they’d like that redeveloped.”
The Denver office of CBRE Advisors is listing the sale, although its promotional material does not list a sales price for the 493,172-square-foot shopping center, and company officials would not discuss a price with BizWest. One commercial real-estate agent who spoke to BizWest on condition of anonymity said fixed sale prices sometimes aren’t set for such projects, and that the listing agent simply waits for offers.
But its marketing already touts “Northern Colorado’s dominant shopping destination” as already “dog friendly” and providing “more than just shopping. It’s an experience and a place for the community to gather,” the sales verbiage reads. “The unique, outdoor experience encourages people to relax, have fun and stay awhile.”
Located northeast of the Interstate 25-U.S. 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 CBRE’s material.
The Promenade Shops, the centerpiece of the Centerra mixed-use development, includes such major retailers as Macy’s, Best Buy, Dick’s Sporting Goods and Barnes & Noble, as well as a multi-screen Metrolux movie theater, several chain restaurants and many smaller-footprint stores with familiar national and regional brands such as Yankee Candle, Banana Republic and Famous Footwear. Of its 93 units, the CBRE brochure indicates that 10 units are available for lease, including one 10,485-square-foot space, as well as two pads of 10,000 and 7,651 square feet.
The listing of the shopping center for sale comes just two months after the conclusion of an 11-year court battle over a partnership deal that went sour in the management and ownership of the shopping center. It ended with a “satisfaction of judgment” notice filed in U.S. 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 pre- and post-judgment interest. That battle began 10 years earlier when McWhinney sued its 50-50 partners in the project, Poag & McEwen Lifestyle Centers LLC, over their partnership in the construction and management of the Promenade Shops. What followed was a series of judgments, appeals and lawsuits.
A foreclosure auction was held in May 2021 when a lender tried to recover nearly $87 million from mall owner DRA Advisors LLC, a New York City-based private-equity group operating as G&I VI Promenade LLC and G&I VI Retail Prom LLC, but there were no bids.
That was the second time the mall had fallen into foreclosure. The first was in 2009, when it was acquired by a subsidiary of Keybank for $85 million. DRA Advisors bought the property for $75.5 million months later.