P3 Acquires 65-Acre Tract for 900,000 SF Mixed-Use Project in Castle Rock, Colo.
CASTLE ROCK, COLO. — Development firm P3 Advisors has acquired a 65-acre tract of land in Castle Rock, roughly midway between Denver and Colorado Springs, for the development of Miller’s Landing, a mixed-use project that is expected to generate between $350 million and $500 million in private investment.
Miller’s Landing will feature a full-service resort and conference center, retail pad sites, office space and restaurants. Developers estimate that the property will span approximately 900,000 square feet upon completion. The property will also include an undetermined amount of public parking space.
The hotel will offer 250 rooms, while the retail and office components could total as much as 250,000 square feet and 480,000 square feet, respectively, according to the Denver Post. Under the terms of the development agreement, the amount of retail development will be limited to 100,000 square feet until the hotel is complete and operating. The full 250,000 square feet of retail space may not be developed until 150,000 square feet of office space has been built.
The development site, located at the northwest corner of Interstate 25 and Plum Creek Parkway, is a former landfill situated within Philip S. Miller Park, a 300-acre swath that attracts about 1.5 million visitors annually.
As part of the development, P3 Advisors will build trails to connect the park to downtown Castle Rock, a city of roughly 60,000 that is adding more than 1,000 new residents per year.
The creation of these trails comes as part of a $65 million package of public infrastructure improvements that a partnership between the developers and the Town of Castle Rock will provide. The public financing agreement was approved in April.
Henry Crown & Co. and Avison Young Development, both based in Chicago, are co-developing the project with P3 Advisors. Avison Young’s Denver brokerage office is handling leasing of the property. Negotiations with potential occupants of the pad sites are underway and expected to close in 2018.
“The Denver metropolitan area is one of the most economically vibrant in the nation, and Castle Rock has for years been one of its fastest-growing submarkets,” says Richard Hanson, president of Avison Young Development. “We look forward to activating this intersection and creating a unique employment center that offers ease of access to Denver and Colorado Springs.”
P3 Advisors expects to break ground on Phase I of the project, which includes a $12 million remediation of the landfill and the development of the hospitality component, in November. Full build-out is expected to happen within five to eight years.
— Taylor Williams