A big new redevelopment project is starting construction in Denver’s Cherry Creek neighborhood soon.

No, not the one at the mall. Not yet, at least.

Across the street from the Cherry Creek Shopping Center, the former Sears department store and the Crate & Barrel building are set to be torn down later this month.

Denver-based developers BMC Investments, in partnership with L.A. investment firm Prism Places and Invesco Real Estate, announced on Tuesday it secured the debt financing needed to begin building its Cherry Lane project at 1st Avenue and Clayton Lane.

It will begin with the demolition of the stores next to Cherry Creek’s Whole Foods Market, the developers said.

For BMC Investments CEO Matt Joblon, who has worked on many development projects within Cherry Creek, redeveloping the old Sears that has sat empty since the 2010s within the hottest neighborhood in Denver is an “opportunity of a lifetime.”

“It’s a super underutilized asset and maybe what is one of the best pieces of land in all of Denver, and certainly in Cherry Creek,” Joblon said.

The Cherry Lane redevelopment aims to transform the corner into a major outdoor shopping hub.

It could make space for up to 35 new businesses within the highly-coveted neighborhood, where vacancy rates have been at a record low.

Cherry Lane will be a mixed-use project, acting as an extension of the Clayton Lane development finished in 2004.

It is set to add 379 apartments and 59,000 square feet of office space, according to the developers. The parking garage on the block will be renovated, with several floors added on top of it.

There will also be more than 132,000 square feet of luxury store space on the ground floor, as well as a rooftop space open for lease.

The developers said the development has already “received significant interest” from brands with stores on Fifth Avenue in New York City and Rodeo Drive in Beverly Hills.

“Cherry Creek is a dynamic community, and we have the opportunity to finally meet its retail needs with a diverse, street-level project boasting must-have shopping, services and dining from both local and national tenants,” said Stenn Parton, founder and CEO of Prism Places, in a news release.

While Cherry Creek is incredibly popular for retailers, Joblon said the area has struggled to attract some of the top high-end fashion brands because the neighborhood’s storefronts aren’t large enough.

But hiding back-of-house utilities within the block’s “bowling alley” and creating a pedestrian retail lane allow for more space to lease and both sides of the building are open to foot traffic, he said.

Joblon said he believes Cherry Lane will become an anchor for Cherry Creek North.

The neighborhood’s main draw has long been the mall, he said, but it’s on its own island separate from Cherry Creek North. And malls aren’t as popular as they used to be.

The developers said they are aiming to make the place bustling with a mix of shops, restaurants, cafes, ice cream parlors, steakhouses, an outdoor bar and a gym.

This specific corner of Cherry Creek North is set for a major development boom with Cherry Lane and the city’s recent approval of Cherry Creek West, which is set to develop the parking lots at the mall into an urban neighborhood with apartments, offices, shops and green space.

Cherry Lane will be “synergistic” to Cherry Creek West, Joblon said.

Their project will have smaller office spaces, while Cherry Creek West will focus more heavily on large footprints, he said. Cherry Lane will have luxury retail, while the mall site will be home to a new park.

“The projects will feed off each other in the amenities,” he said.

Joblon said he’s prepared for the massive amount of construction causing inconveniences to traffic and the neighborhood, saying their goal is to over communicate to the community about potential disruptions.

“It’s going to happen on both sides of the street and there will be frustration by people,” Joblon said. “It just happens.”

The first phase of Cherry Lane is expected to be completed by October 2027, according to the developers.

City officials approved of the demolition of the building in September, according to property records. The project’s site plan is still awaiting final approval from Denver, which is expected in May.

The group of developers announced last summer it planned to expand the scope of the Cherry Creek development due to the interest in their first phase.

Work is expected to begin in 2027 on Phase II by demolishing a retail building behind Hotel Clio on the corner of Detroit Street and Second Avenue to make room for a luxury apartment complex dubbed Cherry Lane Tower.

They also plan to redevelop more than 45,000 square feet of already-existing retail space on East Clayton Lane into smaller floor plans to accommodate more boutiques and restaurants.

As someone who has developed much of Cherry Creek, Joblon said this project is the culmination of learning what works in the neighborhood and what doesn’t.

The area is in desperate need of more housing, he said.

It’s also difficult to get the largest brand names without larger spaces and to attract enough of them.

“It’s really hard to create incredible experiential destinations, shopping destinations, without critical mass storefronts,” Joblon said.

Creating space for seven new businesses is already tough in this heavily-developed neighborhood, he said.

And yet, they’re shooting to make room for 35, he said.