A new start.
After losing big-name tenants to bankruptcy, Northglenn Marketplace is looking for a new owner and better luck.
Northglenn Marketplace hasn’t had the best of luck when it comes to its tenants going bankrupt. First, it was Bennigan’s and Circuit City. Then came Borders. And last summer, Sports Authority called it quits, leaving another 32,000 square feet empty in the high-profile retail site at Interstate 25 and West 104th Avenue.
Now, the former Northglenn Mall turned big box power center is for sale — a move that city officials hope could breathe life into a property that is more than a third vacant. Remaining tenants include Bed Bath & Beyond, Ross Dress for Less, Petsmart, Lowe’s and Jo-Ann Fabrics.
“We’re very excited about the potential of a new owner to stabilize the center and revitalize it, move it into the next chapter,” said Debbie Tuttle, Northglenn economic development manager.
California-based Faris Lee Investments is marketing the 439,063-square-foot center on behalf of its owner, HQ8-10410-10450 Melody Lane LLC.
Initial bids are due Wednesday — although that deadline could be pushed out, said Don MacLellan, senior managing partner at Faris Lee. The top three or four bidders will then be involved in an April auction.
HQ8 has owned Northglenn Marketplace since 2012, when the property went through foreclosure, according to Adams County property records.
“Ownership has been in the hands of a lender structure and there’s limitations on what they can do,” MacLellan said. “That’s why the city is excited — the new owner is going to be a developer with a good track record and capital and a business plan for the redevelopment of the property.
“It bodes very well for the center and the tenants and future tenants.”
Marketing materials suggest the site is ripe for repositioning or redevelopment, with “significant demand from a number of retailers including multiplex theaters, fitness, soft goods and several strong restaurant concepts.”
“It’s the perfect location on 104th,” Tuttle said. “It’s all about location, location, location. We have the housing density, the residential density, that some of the further north centers don’t quite have.”
Northglenn Marketplace also sits in an urban renewal area, although Tuttle said city financial assistance is “not a given.”
The site has been a major retail hub since 1968, when the developers of Northglenn, Jordon Perlmutter and Samuel Primack’s PerlMack Enterprises, built the Northglenn Mall, one of the first enclosed shopping malls in the Denver area.
Thirty years later, Jordon Perlmutter & Co. bought the now-struggling mall back, demolishing it in 1998 to make way for the big box-anchored Marketplace at Northglenn that sits there today.
In 2005, Perlmutter sold the power center for $90.76 million to ELPF Northglenn LLC, according to county property records. ELPF defaulted on its loan in 2011.
Tuttle said city officials are optimistic that a new owner will have a more “vested interest” in seeing the property revitalized.
Two of the center’s buildings — the Lowe’s store and a multitenant storefront that is home to K&G Fashion Superstore and Woodley’s Fine Furniture — have separate ownership and are not part of the current sale.
“There’s a great opportunity for someone to purchase the property and make it into a thriving center,” Tuttle said. “It will be different than it was before.”
A hawk flies over the closed Sports Authority store at Northglenn Marketplace on Monday. The entire property, once known as Northglenn Mall, is more than a third vacant and is for sale. Initial bids are due Wednesday. Hyoung Chang, The Denver Post