Phelps Development

Denver Pavilions    Denver, CO

Denver Pavillions

Project Description:

The Denver Pavilions project is a 730,000 SF multilevel entertainment / retail complex, including 824 stalls of underground parking, in downtown Denver which revitalized a two-block area. This is the first venture into the Colorado market for Nike Town, Hard Rock Café, and Virgin Records Superstore. These anchor tenants are complemented by a 12-screen movie theater, restaurants, nightclubs, and specialty retail tenants.

Phelps Development / Hensel Phelps Construction Co. worked in partnership with the Entertainment Development Group, Inc. on an at-risk basis from the conceptual stage to bring Denver Pavilions to completion. The Phelps team was responsible for managing cost throughout design development as the design was changed in response to the needs of new anchor tenants. During the project financing phase, Phelps Development provided price and schedule guarantees required for the project financing. In addition, the Phelps organization brought an established track record with DURA "Denver Urban Renewal Agency", which was a major factor in DURA's decision to contribute $24 million in funding subsidies to the project, paving the way for the construction loan and permanent financing.

Project Team:

Development Assistance: Phelps Development
Contractor: Hensel Phelps Construction Co.

Project Cost:

Total: $90,000,000

Financing Structure:

Project was financed via a syndicated construction/mini-permanent conventional loan led by Canadian Imperial National Bank. A portion of the project equity came from the "Denver Urban Renewal Agency" (DURA) which contributed $24 million in funding to the project. Hensel Phelps provided a completion guarantee to facilitate the project financing.