By Ioana Neamt, Associate Editor
Starwood Capital Group of Connecticut recently acquired a mixed-use lifestyle center in Lakewood, Colo., through its Starwood Global Opportunity Fund X. Though terms of the deal were not disclosed, the Denver Business Journal reports that the price tag for the asset was close to $300 million, making it one of the largest commercial transactions this year.
Starwood acquired the 1.1 million-square-foot Belmar mixed-use lifestyle center located roughly ten miles of downtown Denver, from GF Properties Group LLC—a subsidiary of the Southern Ute Indian Tribe. Belmar serves as the town center for Lakewood, Colo. and the greater West Denver area, and incorporates a mix of retail, office, and multifamily components. According to the Denver Business Journal, the deal was brokered by Tim Richey, Mike Winn and Brad Lyons of CBRE Group Inc.
“We expect the immediate area to continue experiencing strong demand from younger professionals, with population growth within five miles of Belmar projected to expand by 10% over the next five years,” David Baker, vice president at Starwood, said in a statement. “Belmar is well-positioned to benefit from this trend, given its walkable, urban-style, amenity-rich environment, as well as its close proximity to Denver’s central business district and recreation areas in the Rocky Mountains.”
The Belmar open-air center includes 871,000 square feet of retail space, 96 percent of which are leased to tenants such as Whole Foods, Dick’s Sporting Goods, Best Buy, and Nordstrom Rack. The center’s retail component also includes a 16-screen Century Theatre.
Belmar also incorporates 282,000 square feet of fully leased Class A office space, as well as 171 Class A residential units. The lifestyle center will now be managed by Starwood Retail Partners, a Starwood affiliate established in 2012. Belmar will be the 30th property and sixth lifestyle center in Starwood Retail Partners’ portfolio.
Image courtesy of Yardi Matrix