Vestar, in a joint venture with a fund advised by UBS Global Asset Management, announced today that it has acquired Orchard Town Center, a 914,000-square-foot open-air regional retail center located in Westminster, Colorado for $123.5 million in an all cash transaction. This marks Vestar’s first acquisition in the Denver market.
The acquisition of Orchard Town Center is the firm’s second investment in the past four months after the September acquisition of the 855,728-square-foot Village of Orange super-regional mall in Orange, Calif. In the past 30 months, Vestar has acquired retail centers totaling more than $1 billion.
“Orchard Town Center provides us with a value-add investment opportunity in a premier region of the West,” said Rick Kuhle, President of Vestar. “Our goal is to significantly upgrade and rebrand the center with new amenities while bringing in new retailers.”
Kuhle continued by saying that Denver is one of the premier retail real estate markets in the U.S. with a strong demographic mix and stable population growth.
“We are very bullish about these types of value-add investment opportunities and are aggressively seeking more properties like it in Denver and throughout the West,” said David Larcher, Executive Vice President of Vestar.
Conveniently located on the northwest corner of Interstate 25 and 144th Avenue, Orchard Town Center offers guests a charming town square atmosphere with tree-lined pathways leading to anchor tenants, specialty shops, restaurants and entertainment venues. The center is 89 percent leased and anchored by JCPenney, SuperTarget, Macy’s, AMC Theatres REI and Lifetime Fitness. Orchard Town Center also features other nationally-recognized tenants including Forever 21, Chico’s, Victoria’s Secret, Eddie Bauer, Old Navy, ULTA Beauty and Ross Dress for Less.
The seller, Forest City Enterprises, Inc., (NYSE: FCEA and FCEB), was represented by Mike Winn and Tim Richey of Cushman & Wakefield. Vestar represented itself in the transaction.