Plans for the massive redevelopment of Elitch Gardens Theme and Water Park took a major step forward today as JLL Capital Markets announced it has arranged $124.6 million in refinancing for the park on behalf of the borrower, a partnership of Kroenke Sports and Entertainment (KSE) and Revesco Properties. Loan proceeds will be used to retire existing debt and fund ongoing pre-development work for the future River Mile project — the largest project in downtown Denver, spanning 62 acres – that is expected to take up to 25 years to complete.
According to a JLL press release, the ownership group has undertaken an extensive re-entitlement process to secure new zoning rights to facilitate the ultimate redevelopment into more than 14 million square feet of residential and commercial mixed-use space spread over 25 parcels. The development will also incorporate major improvements to the South Platte River to fully activate one mile of river frontage for a variety of active and passive public uses.
“We were extremely pleased to work with Pacific Western Bank and JLL on this transaction,” said Rhys Duggan, president of Revesco Properties and the managing member of the borrower. “The entire debt team worked extremely efficiently to get this refinancing closed quickly and on competitive terms.”
Kroenke and Revesco acquired Elitch Gardens in 2015 and, over its ownership period, has completed numerous needed improvements to the park, including three new major rise attractions. The park will continue to operate as one of Denver’s premiere major attractions for the foreseeable future. The ownership group is also nearing completion of the future home of the 90,000-square-foot Meow Wolf attraction, which it is constructing on a neighboring site.
The JLL Capital Markets Debt Placement team representing the borrower was led by Senior Managing Director Eric Tupler and Director Tyler Dumon. Pacific Western Bank, led by EVP|Regional Manager for Colorado Commercial Real Estate Lending Chris Erickson, served as the primary lender for the deal.
“We are pleased to partner with KSE and Revesco Properties on this meaningful redevelopment project,” Erickson said. “It’s forward-thinking projects like this that will continue to foster the growth and expansion of our city. We are actively seeking new opportunities to lend throughout the Denver area by partnering with proven developers like KSE and Revesco Properties on projects that help the city and surrounding area reach its full potential.”