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BELMAR HELPS REVIVE CENTER OF LAKEWOOD, COLO.

BY DEBRA HAZEL

For years, the closest thing to a town center that Lakewood, Colo., had was a mall. So when that mall began to show its age, it was a problem for the whole town.

Tax revenues dropped as shoppers flocked to newer projects, such as Park Meadows, in Littleton, Colo., or Cherry Creek Mall, in Denver, recalls Mike Rock, Lakewood’s city manager. Anchors Dillard’s, J.C. Penney and Montgomery Ward closed down.

“Our concern was that we would end up with a boarded-up mall,” said Lakewood Mayor Steve Burkholder.

Lakewood, just 10 minutes west of Denver, is Colorado’s fourth-largest city, with a population of 145,000 people. The trade area has nearly 352,000 people, and the average household income is $97,547 a year, according to Market Insite Group.

The city decided that a mixed-use development would be the best solution and that Continuum Partners would be the best firm to build it. Continuum had redeveloped 16 Market Square, in the lower downtown area of Denver, an eight-story building that combines retail, offices and luxury residences.

The result is Belmar, which opened in May. (Belmar is the name of a mansion and estate that once stood on the site.) Designed by Boston-based Elkus/Manfredi Architects, the Belmar complex creates an entire neighborhood based on New Urbanist principles, encouraging street interaction by placing most of the parking behind buildings. Eventually, the $750 million project will consist of about 1 million square feet of retail, 1 million square feet of office space, a 250-room hotel and 1,400 residences, on 104 acres.

Retail and restaurant tenants include Aeropostale, Chico’s, Galyan’s Trading Co., Pier 1 Imports and P.F. Chang’s. There’s a 16-lane bowling alley that also includes private party rooms and a laundromat. The major anchor is a 16-screen Century theater. Service tenants include a King Soopers supermarket and a Bally’s Total Fitness. There’s even a street of galleries featuring Colorado artists and topped by lofts.

“You can spend five hours, or just get a cup of coffee,” said Peter Fair, a principal of Denver-based Continuum Partners.

The buildings are centered on a 1.5-acre village green that will have a pond and fountain when it opens in the fall. During the winter, the pond will serve as a skating rink. To give the impression of a town created over a long period of time, the buildings vary in design and materials. Because of Denver’s altitude and climate, trees grow slowly, so existing trees removed from the mall site have been carefully preserved and replanted.

The $250 million initial phase was funded through a $140 million construction loan from a six-bank consortium including Wells Fargo and $57 million in special district bonds; the remainder consisted of equity from the developer. The city anticipates sales tax revenues totaling $100 million over the next 20 years.

The city and the developer have worked together smoothly. “This was a very collaborative process,” said Mark Falcone, managing director of Continuum.

The second phase will open in the fall of 2005, with ultimate office build-out likely to come sometime in 2007.