Alliance Residential Company has secured an 82.2 million US dollar construction loan for the transformation of a vacant Macy's department store into a residential complex. The project is located in Centennial in the US state of Colorado, a suburb south of Denver. Landesbank Hessen-Thüringen (Helaba) is acting as the financing institution, providing the loan for the construction of 358 rental flats.
The project is being developed on the site of The Streets at SouthGlenn shopping centre. Alliance Residential had previously acquired the decommissioned department store for 11 million US dollars. The seller of the property was PCCP, which holds the retail property as part of a joint venture.
Proven conversion strategy and existing infrastructure
Jason Deck, Director of Real Estate Finance at Helaba, highlighted that Alliance Residential already possesses sound experience in converting former Macy's locations into residential property. Among other schemes, the company is currently delivering a similar project in the state of Oregon. The transaction is advantageous for both parties: the seller benefits from the integration of more than 350 market-rate flats into the centre, whilst the developer can draw on already established local amenities and infrastructure.
Deck cited the immediate proximity to a Whole Foods grocery store, situated just a few steps away, as a prominent location advantage. In addition, the Centennial submarket, located around twelve miles south of downtown Denver, is characterised by exceptionally robust fundamentals in the housing sector.
Completion scheduled for September 2029
Completion of the construction project is scheduled for September 2029. A comprehensive range of leisure amenities is planned for future tenants:
- —A swimming pool for the residential community
- —Modern coworking spaces for mobile working
- —A fully equipped fitness centre
- —A roof terrace with views
Alliance Residential did not initially respond to a request for comment.
