Colorado Real Estate Journal - March 1, 2017
Redevelopment is on the horizon for a pair of Cherry Creek North properties. “Every project we do in Cherry Creek reflects our continued commitment to the vitality of the district and demonstrates our loyalty to its patrons, tenants and residents who we work closely with throughout the process,” said Matt Joblon, CEO of BMC Investments, which purchased the properties at 240 St. Paul St. and 240-246 Milwaukee St. for $10.9 and $6.3 million, respectively. “These acquisitions allow us to exercise greater control over shaping the area spanning Second and Third avenues between St. Paul and Milwaukee streets.” The acquisitions not only expand BMC’s commitment to the investment in and redevelopment of Cherry Creek but also allow the real estate investment and development company to control the St. Paul block between Second and Third – more than 2.5 contiguous acres in Cherry Creek. The rarity of one owner owning a parcel of this size in Cherry Creek presents an opportunity to do a “game-changing” project(s) that makes a positive impact on the community, noted BMC Investments. A 24,000-square-foot office and retail building situated on an 18,750-sf parcel is located at 240 St. Paul. Currently, the building is 92 percent leased with a total of 18 tenants. The property could accommodate 100,000 buildable sf and is situated to the north of BMC’s 210 St. Paul Street redevelopment project – a future St. Paul Collection property, which will be home to one of two luxury apartment towers. The 240-246 Milwaukee assemblage is 12,500 sf with 8,759 sf of retail space. Tenants include Bellco Credit Union, Bliss Nail Salon and Le Soutien. BMC can build up to 60,000 sf at this location. The future redevelopment site is located directly to the south of the second tower in BMC’s St. Paul Collection project at 255 Milwaukee St., currently under redevelopment. BMC plans to operate the properties as is for the time being. While it does plan future development at the property, the scope and specifications have yet to be determined. The firm plans to figure out its highest and best use once current projects under construction are completed in Cherry Creek. Contractors and architects for the new development have yet to be determined. Jeff Caldwell and Blake Holcomb of Pinnacle Real Estate Advisors represented the seller of 242 Milwaukee. There were no brokers for the sale of 240. BMC Investments’ other recent activity in Cherry Creek includes the development of Steele Creek, a 218-unit luxury apartment building with Matsuhisa Restaurant on the ground floor; Halcyon Hotel, a recently completed 154-key luxury hotel; the Marriott Moxy, a 170-key micro hotel slated for a summer opening; and 2727 Second Ave., a planned 80,000-sf office and redevelopment project expected to deliver in fall 2018, as well as the aforementioned St. Paul Collection. BLDG Management, an affiliate of BMC Investments, will manage the new properties under its commercial management division, led by Sarah Whetzell.