Closure Signals Clayton Lane Redo
Rebuild To Include Eight-Story Buildings; Columbine Street Will Be Extended To 1st Ave.
by Glen Richardson
Announcement last month that the 60-year-old Sears store in Cherry Creek North is closing signals the beginning of a rebuild for the Clayton Lane retail district as first reported by the Chronicle last October. The Cherry Creek location opened in the summer of 1954 after Sears closed its store in downtown Denver.
Sears dates back much further in history. Sears, Roebuck and Co. was officially formed in 1893. The company dates its history back to 1886 when Richard W. Sears, a railroad agent in Minnesota, received a box of errant watches and then sold them to other agents.
The Cherry Creek Sears is one of 235 stores closing nationwide due to declining sales and posting a $548 million loss in the third quarter of 2014. In addition, on Tuesday, January 27, 100 employees were notified their positions had been eliminated effective immediately at the corporate headquarters in Hoffman Estates, IL. Fifteen more were eliminated at other corporate support locations. “These decisions are never taken lightly, but they are a necessary part of our efforts to transform the company and return it to profitability,” Sears said in a statement. Sears Holdings has lost money for 10 consecutive quarters.
The closure will speed up redevelopment options for the 9.5 acres first developed by the Nichols Partnership 15 years ago. The Cherry Creek North Sears store occupies 133,493 square feet, while the auto center takes up another 18,769 square feet. The 66 employees of both Sears and the Auto Center will be able to apply for positions at nearby Sears and Kmart stores which include Aurora, Lakewood, Centennial, Thornton and Littleton.
David Tryba — the original architect for Clayton Lane who has been retained to develop new options for the site — says the store and adjacent parking garage will be demolished and replaced with residential units plus commercial and retail space. Residential units would be built on top of one- or two-story retail spaces, while commercial office space would be in adjacent buildings. Working with AmCap Inc, the Stamford, Conn., developer of Clayton Lane, initial plans call for the construction of two to perhaps four new buildings on the site and moving the parking underground.
Sears says it expects to close the store by the end of next month (March). In a statement, Sears said, “Store closures are part of a series of actions we’re taking to reduce ongoing expenses, adjust our asset base, and accelerate the transformation of our business model. These actions will better enable us to focus our investments on serving our customers and members through integrated retail — at the store, online and in the home.”
The liquidation sale has started and there are discounts at this early stage. Currently, all inventory, including home appliances, is “priced to sell,” with 30% off all clothing and footwear and 60% off all fine gold, silver, diamond and gemstone jewelry. Plus, if you join Sears Shop Your Way loyalty club (it’s free), you will save an extra 5% off general merchandise and an extra 25% off fine jewelry.
Once closed, Tryba Architects and AmCap are expected to finalize development plans for the property. After knocking down the parking garage the architect says those plans will entail the extension of Columbine Street from East 2nd Ave. to East 1st. Ave.
Sears Site Plans
The initial spiff up of the four-block area at the intersection of 1st Ave. and University was designed to generate new tax revenue for the City and improve traffic flow. Observers now anticipate the redevelopment will be designed to make the site —the area’s largest single parcel in the district — into what is being envisioned as Denver’s Rodeo Drive.
Many also believe that construction of a new and bigger Whole Foods will be included in the future Clayton Lane improvement strategy. Additional eight-story or larger buildings may be a part of the redevelopment. Zoning currently allows for buildings in the district to be eight stories tall.
It will be later this year before the Sears building and parking garage are razed and construction of the street extension at Columbine started. The bottom line for Cherry Creek shoppers and residents is that they will have to endure additional construction projects and traffic tie-ups in Cherry Creek for at least two to three more years. When eventually completed, the new Clayton Lane will be a mixed-use development with retail, office and residential but not another hotel. The hotel (JW Marriott) portion of the original development was sold and is not part of Clayton Lane. Furthermore, three hotels are in line to be built in Cherry Creek with construction of the 150-room hotel at 250 Columbine now underway. AmCap has hired Newmark Grubb Knight Frank to provide marketing and leasing services for the retail and office components of the planned redevelopment.