Stockdale, UBS Recap 1.1 MSF Denver Mall
Since purchasing the property nearly five years ago, the owner has re-tenanted two anchor locations.
Stockdale Capital Partners, in collaboration with UBS’s Unified Global Alternatives – Real Estate business, has completed the recapitalization of The Shops at Northfield, reportedly Denver’s most-visited open-air lifestyle center.
Stockdale acquired the center in 2021. Since then, it has made some serious moves, such as securing entitlements for up to 1,500 multifamily units, reletting former anchor boxes to Wayfair and fitness chain Life Time, and completing about 350,000 square feet of new leases, including national brands such as Lululemon, Nike, Sephora and a national grocer.
Commercial Property Executive covered the Wayfair lease this past August. The agreement on the two-story, 140,000-square-foot store, formerly occupied by Macy’s, was arranged by SRS Real Estate Partners and Newmark.
“Coming out of the pandemic, we’ve seen a meaningful rebound in retail demand driven by strong consumer spending and a renewed preference for in-person experiences,” Jeff Bhathal, managing director of retail at Stockdale, told CPE.
He added that leasing activity has picked up notably across the company’s portfolio and the broader sector, particularly in categories like health and wellness and digitally native brands expanding into brick-and-mortar. “At the same time, national retailers are rebuilding their pipelines, and there’s been a clear return to longer-term lease commitments, reflecting increased confidence in the sector.”
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The Shops at Northfield’s 87-acre mixed-use site, just east of the intersection of I-70 and I-270, has about 1.1 million square feet of retail, restaurant and entertainment space. A Stockdale spokesperson told CPE that the multifamily entitlements were concluded in the fourth quarter and that the company has not yet drawn up a development timeline.
Small is beautiful
Retail space in metro Denver is benefiting from ongoing, albeit slower, population growth; strong income levels; and a diversified economy, according to a fourth-quarter report from Matthews. Sales of retail properties totaled $436 million over the quarter, consisting primarily (roughly two-thirds) of smaller, single-tenant net-leased deals; larger, value-add transactions were limited, in part because of higher financing costs.
Retail leasing rose in the fourth quarter, again centered on smaller formats, Matthews reported. Strip centers and general retail are showing overall vacancies of 5.4 percent and 2.2 percent, respectively. Retail space across the metro is being supported in part by demolitions in favor of multifamily redevelopment, the report noted.
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