One of the biggest names in mutual funds is beefing up its commercial real estate portfolio, backing a push to double down on a development in one of Denver’s hottest neighborhoods.
Invesco — which has approximately $1.7 trillion in assets under management — is a linchpin of the second phase of the mixed-use Cherry Lane Project, the Denver Post reports. The Atlanta-based firm, familiar in Denver from a decade of having its name on the NFL Broncos’ stadium some years ago, joins with locally based BMC and Prism Places in Los Angeles on the deal.
The overall price of the project totals $500 million.
Cherry Lane was previously called Clayton Lane. The new name directly reflects the upscale Cherry Hill neighborhood, which has been a rare bright spot in Denver’s office market, where the overall vacancy rate has hovered around 25 percent this year.
The first phase of Cherry Lane has yet to start construction, but “has already generated tremendous interest and we are thrilled to have the opportunity to expand this exciting redevelopment plan to Phase II,” Matt Joblon, founding partner and CEO of BMC, said in a statement.
The first phase runs from Clayton Lane to Detroit Street and between First and Second avenues in Cherry Creek North. The project is anchored by a 400-unit apartment tower at Second Avenue and Detroit, plus about 130,000 square feet of retail and a parking garage.
The developers now plan the adjacent second phase to follow up with more residential and retail to capitalize on the expected commercial growth others have brought to the area, with a continued emphasis on multifamily rentals. Plans call for an 80-unit apartment complex, 51,000 square feet of retail and 463 parking space.
“This next phase brings additional apartments to Cherry Creek North, which are undersupplied given all of the business growth occurring in this submarket,” Joblon said in his statement.
Construction of Cherry Lane’s first phase is slated to start in December and take about two years. The second phase is expected to start after the first phase is completed and wrap up in 2028.