Loveland-based McWhinney Real Estate Services Inc. closed on the Foothills mall in Fort Collins this week after pursuing the foreclosed shopping center for months.
The new owners, which include California real estate firm Prism Places Inc., will immediately begin “supporting the mall’s existing tenants, taking inventory of current operations and engaging stakeholders to gather input on potential future improvements to the property,” McWhinney said in a news release Wednesday morning.
The sales price was not immediately available Wednesday, and a deed had yet to be recorded with Larimer County.
In February, a state judge approved McWhinney to begin negotiations to buy the ailing 620,000-square-foot property on Foothill Parkway, months after its owners placed it for sale and after it was placed in foreclosure when it fell behind on what remains of a $150 million construction loan.
McWhinney executives have previously declined to comment on how the remaining $46.59 million on Foothill’s construction loan could affect the final sale price or the property’s value.
The deal includes all of the mall’s assets and buildings, with the exception of the parking structure, Foothills Activity Center and surface parking field, which are owned by city entities, according to McWhinney.
Prism will manage the mall.
“It’s an incredible asset with significant potential, and our first step is to take the time to get fully acquainted with existing tenants and absorb the nuances of current operations,” McWhinney president Ray Pittman said in a prepared statement. “As owner of the Cycle Apartments next door, we see this acquisition as a natural extension of our investment in Midtown Fort Collins. We feel this is a once-in-a-generation opportunity to create an exceptional destination.”
Pittman told BizWest this year that McWhinney envisions redevelopment efforts to include a mix of uses. McWhinney has developed several such projects, including Centerra in Loveland and Baseline in Broomfield.
The deal marks Los Angeles-based Prism’s first entry into the Colorado market and first partnership with McWhinney.
“This project is a natural fit for both McWhinney and Prism Places, as we share the expertise and passion for developing experiential places,” Prism president Stenn Parton said. “We are excited to collaborate on how best to support the existing tenants and position the property for long-term success.”