Denver Pavilions Sale: $37M Downtown Redevelopment Plan

DENVER, CO – The Denver Pavilions, a two-block open-air mall on 16th Street, is set for a major transition. The Downtown Development Authority (DDA) has approved a $37 million agreement to purchase the struggling property, a deal city leaders say is designed to stabilize Upper Downtown and guide a long-term redevelopment.

Photos Sourced from Denver Pavilions Website

Why This Project Matters

• A central site at risk: Once valued at $140 million, the Pavilions has seen vacancy rates climb to nearly 40 percent after years of pandemic disruptions and construction along 16th Street. Owners defaulted on an $85 million loan this summer, raising the risk of foreclosure.

• Public ownership as a tool: The DDA, which uses a voter-approved tax district to reinvest revenues downtown, says purchasing the mall allows the city to control its future. Importantly, officials emphasized the purchase does not use the city’s general fund or impact Denver’s budget.

• Redevelopment vision: The authority plans to draft two or three mixed-use concepts for the site and seek public input before selecting a plan. Once a vision is adopted, the property would be resold to a private developer to carry it out.

Despite recent high-profile departures like Hard Rock Café and Uniqlo, the Pavilions still houses Maggiano’s Little Italy, Regal Cinemas, H&M, Lucky Strike, and other tenants. Officials say those businesses will remain under current management during the transition.

Bigger picture

The Pavilions purchase follows the DDA’s $23 million acquisition of two nearby parking lots in July, part of a larger $570 million investment package approved by downtown voters last year. That funding supports office-to-residential conversions, new parks, and small business projects. With another $8 million earmarked for improvements and leasing, the total investment in the Pavilions and adjacent lots will exceed $60 million.

Nest Steps

The agreement, approved unanimously by the DDA board, is expected to close later this year. City officials have described the move as an effort to prevent further decline of the property and to spark a new chapter for Upper Downtown.

Photos Sourced from Denver Pavilions Facebook Page

Project Details

• Buyer / Lead Agency: Downtown Development Authority (DDA)

• Previous Owner: Gart Properties / MetLife Real Estate Investors

• Purchase Price: $37 million

• Additional Investment: $23 million for adjacent parking lots; $8 million earmarked for improvements and leasing

• Funding Source: Downtown Development Authority tax district (voter-approved, not general fund)

• Current Size: ~350,000 square feet, spanning two blocks

• Tenants Remaining: Maggiano’s Little Italy, Regal Cinemas, H&M, Lucky Strike, others

All project information was sourced from publicly available site plans, renderings, and permitting documents.

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All project information was sourced from publicly available site plans, renderings, and permitting documents.