The shuttered Sears in Cherry Creek is about to come down — and that’s just the start of the changes.
Denver-based BMC Investments, led by Matt Joblon, said Monday that it and its partners have closed on debt financing that allows them to begin work on the redevelopment of the Clayton Lane project in Cherry Creek.
The work will involve demolishing the Sears along First Avenue, which closed in 2015, as well as the former Crate & Barrel at 101 Clayton Lane, which closed in January.
The Sears will be replaced with a nine-story apartment building with 379 units, part of which will also cover the existing parking garage behind it. A six-story building with 59,000 square feet of office space will go where Crate & Barrel stood.
An existing service alley that partially penetrates the site will be turned into a pedestrian walkway that runs from First Avenue to Second Avenue.
Throughout it all will be 132,665 square feet of space for high-end retail and restaurant tenants. Joblon said he’s in talks with three of the nation’s top steakhouse operators for the top floor of the office building.
As part of the changes, the project — which also includes the busy Whole Foods at First and University that will not be affected — is getting a new moniker: Cherry Lane.
“I really think this will be the anchor for Cherry Creek and set it up for long-term success,” Joblon said.
Cherry Lane is being developed by BMC in conjunction with Los Angeles investment firm Prism Places and Invesco Real Estate. Invesco, which has owned Clayton Lane since 2016, brought in BMC and Prism in 2023.
Bank OZK provided the $286 million construction loan, public records show.
Abatement activities are underway at the site. The demolition of the Sears will start this month. Joblon said crews will then dig two stories down for future parking, and pull the Crate & Barrel structure down into the hole.
“It’s the most complex construction deal we’ve done,” said Joblon, whose firm has developed numerous office, hotel and multifamily projects in Cherry Creek.
Although Joblon has previously discussed the apartment and retail components of Cherry Lane, the planned office space is a relatively new addition.
Asked why he is opting to build office space instead of more apartments, Joblon pointed to continued demand for office space in Cherry Creek, plus the smaller nature of that parcel.
“The size of the site really lent itself to be way more efficient for office,” he said.
Tryba Architects designed Cherry Lane. PCL Construction is the general contractor. Michael Hsu Office of Architecture is providing retail interior and exterior design services.
This will be the first of two phases for Cherry Lane. It is expected to be completed in October 2027. The second phase will involve buildings between Clayton Lane and Detroit Street.
Cherry Lane is one of two major redevelopments coming to the corner of First and University. Just to the south, Denver-based East West Partners has begun abatement work on the west end of the Cherry Creek Shopping Center. Demolition of those buildings could start later this year.
East West plans eventually to build seven structures. Four residential buildings will have about 825 units total, and three office buildings will have about 600,000 square feet combined. The project would also incorporate retail space.
Get more business news by signing up for our Economy Now newsletter.
