Denver — A joint venture between full-service real estate company Vestar and a fund advised by UBS Global Asset Management has acquired the Orchard Town Center retail development in the Denver suburb of Westminster for $123.5 million. The 914,000-square-foot, open-air property is anchored by national brands such as Super Target, JC Penney, Macy's, AMC Theatres and REI.
The acquisition marks Vestar's entry into the Denver market. In the past 30 months, the company has purchased more than $1 billion in retail centers nationwide.
"We are very bullish about these types of value-add opportunities and are aggressively seeking more properties like it in Denver and throughout the West," says Ryan Desmond, director of acquisitions and development at Vestar.
Forest City Enterprises Inc. was the seller in the all-cash transaction. The center, which was 89 percent leased at the time of the sale, is located on the northwest corner of Interstate 25 and 144th Avenue.
Besides the aforementioned stores, tenants such as Forever 21, Chico's, Victoria's Secret, Eddie Bauer and Old Navy also occupy space at the property. Designed to replicate the atmosphere of a town square, the development features tree-lined paths bordered by restaurant, entertainment and specialty venues.
"Orchard Town Center provides us with a value-add investment opportunity in a premier region of the West," says David Larcher, executive vice president of Vestar. "Our goal is to significantly upgrade and rebrand the center with new amenities while bringing in new retailers."
Founded in 1977, Phoenix-based Vestar acquires, manages and develops power, lifestyle and neighborhood centers, as well as entertainment/retail complexes.
Mike Winn and Tim Richey of Cushman & Wakefield represented Forest City Enterprises in the sale, while Vestar represented itself.
— John McCurdy