A developer that purchased a shuttered restaurant property in Cherry Creek two years ago won’t be moving forward with the hotel project he proposed.
That’s because he just sold the lot for a whopping four times what he paid, setting a local record for price per square foot in the process.
Mike Mathieson of Forbes Partnership sold the 6,240-square-foot lot at 165 Steele St., previously home to Indian restaurant Bombay Clay Oven, for $8.25 million this week, according to public records.
That works out to $1,322 a square foot for the land.
The buyer was Property Markets Group, which owns land immediately to the north of the property, and has proposed a condo project. The deal with Mathieson will likely expand the footprint of that project.
Mathieson declined to comment Wednesday. Property Markets Group, which has offices in New York and Miami, did not respond to requests for comment.
Mathieson purchased the 165 Steele property in March 2020 for $2 million. The lot is zoned for up to five stories. The single-story building that currently sits on it has been unoccupied since Bombay Clay Oven closed in 2019.
Mathieson said in 2020 that he hoped to build a six-story hotel on the site, with ground-floor restaurant space and 60 units above.
Records show Mathieson submitted development plans to the city in April 2020 but never requested a rezoning of the lot, which would have been needed to build six stories.
PMG, meanwhile, is spending big in Cherry Creek. The company has now paid a combined $26.75 million for 165 and 185 Steele St. and 190 Saint Paul St., which is located across the alley. Its original plans called for a five-story building with 38 condominiums, but those plans didn’t incorporate the 165 Steele parcel.
PMG also purchased the block where TV station Denver7 currently operates last year for $35 million. The company plans an apartment complex there. Denver7, meanwhile, has zeroed in on a relocation to 2323 Delgany St.