Colorado Real Estate Journal - March 4, 2015
Andrew Stewart knows the AOL Time Warner Center mixeduse development in the heart of Manhattan. He also knows the mixed-use Clayton Lane in the heart of Cherry Creek North. “It might be a stretch to say Clayton Lane is Denver’s AOL Time Warner Center,” said Stewart, CEO of Cronheim Mortgage in New Jersey. After all, condos at Clayton Lane aren’t selling for $7,000 per square foot, like they are in the AOL Time Warner Center. “And I’m not sure that is a good thing that they are selling for $7,000 per square foot,” Stewart said. Stewart, and Allison Morava of Cronheim, recently arranged $48 million in financing for the 335,000-sf retail portion of Clayton Lane. The refinance does not include the adjoining J.W. Marriott, the condos developed by Western Development nor the world headquarters for Janus. There are a number of similarities between the AOL Time Warner Center and Clayton Lane. Each includes high-end retail, condos, hotels and offices. And Clayton Lane is poised to become better, with a massive redevelopment planned, he said.
“All across the country, the best developments are re-investing in themselves with a mix of everything from housing to retail,” Stewart said. “They are true lifestyle centers,” he said. The refinance, made on behalf of its owner, AmCap Clayton LLC, does include the Whole Foods anchor, Crate & Barrel, Arhaus Furniture, Sur La Table, White House Black Market, A Pea in the Pod, Design Within Reach and Bose. The retail portion is 99 percent leased. Sears also is an anchor, but it will be vacating the space and will not be part of the redeveloped Clayton Lane. “It’s a great center and only will be better when it is redeveloped,” Stewart said. “And AmCap is truly a great developer,” Stewart said. “I do not use that term lightly. They know what they are doing.” AmCap primarily owns King Soopers-anchored grocery centers in the Denver area. “I don’t think people would argue that Clayton Lane is its crown jewel,” Stewart said. He has a long history with AmCap. “AmCap, as an owner-manager, also has proven to us over the 25 years we have known them to be a creative and conscientious operator.” Stewart said. The fixed-rate financing Cronheim arranged was structured with a 10-year, interest-only term. It was placed with the American General Life Insurance Co. and the National Union Fire Insurance Co. of Pittsburgh. Cronheim acted as the correspondent and servicer for both lenders. Clayton Lane, at East First Avenue and University Boulevard, will only get better, Stewart said. "This property will continue to evolve as one of Denver's premier lifestyle destinations,” Stewart said. Clayton Lane, originally developed by Denver-based Nichols Partnership, is textbook perfect – literally – according to Stewart. “Urban planning author Jane Jacobs would approve of how this has become a 24-hour neighborhood comprising a multitude of users and uses,” Stewart said. Stewart personally visited Clayton three times during the refinancing process. He was impressed by the foot traffic and activity in the area, but said he knows it will get better as Clayton Lane is redeveloped. Clayton Lane also will benefit from nearby developments such as 250 Columbine, he said.