Transforming Festival Shopping Center into New Townhomes in Centennial
The long-vacant Festival Shopping Center in Centennial is entering its next chapter.
Approved by City Council back in June, the 6.68-acre site at the southeast corner of Otero Avenue and University Boulevard is set to be redeveloped into a 114-unit build-to-rent townhome community led by Watermark Properties LLC.
The project will replace nearly 150,000 square feet of shuttered retail with two-, three-, and four-bedroom townhomes averaging 1,374 square feet.
Units will feature quartz countertops, stainless-steel appliances, smart home technology, and central air, while the community will include a pocket park, green space, grilling areas, and walkable connections across the site.
The location places future residents just minutes from the C-470 interchange and in the heart of a growing retail corridor along South University Boulevard. While the Festival Center buildings will come down, the surrounding area continues to attract investment.
To the north, the Cherry Knolls Shopping Center at University and Arapahoe is adding new pad sites in front of Natural Grocers, underscoring the corridor’s strength as a retail destination.
Council’s approval came after revisions to the original plan reduced density and added community-oriented features, including a landscaped buffer between the townhomes and nearby homes, as well as lighting designed to minimize glare. Traffic studies suggest the redevelopment will reduce trips by nearly fivefold compared to retail, improving safety and flow in the area.
Demolition of the existing structures could begin within months of final approvals, with site work scheduled through 2026 and vertical construction starting in 2026.
The project is slated for completion in October 2027.
For Centennial, the Festival Center redevelopment reflects a larger trend that aging suburban shopping centers are giving way to housing, while nearby retail corridors continue to grow. It’s a shift that blends new residential options with ongoing retail vitality, reshaping how residents live, shop, and connect in the city.
