Chapel Hills Mall
Chapel Hills Mall is an enclosed regional shopping mall in northern Colorado Springs, Colorado.
Last updated August 25, 2026
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Overview
Chapel Hills Mall is an enclosed regional shopping center in Colorado Springs, Colorado, serving the northern part of the city and the surrounding El Paso County market. The property contains approximately 1.1 million square feet of gross leasable area and has historically combined department stores, specialty retailers, restaurants, entertainment venues, and family-oriented attractions. Its current anchor lineup includes AMC Theatres, Dick's Sporting Goods, Dillard's, H&M, American Freight, and Macy's, although the tenant mix has changed substantially over the mall's history. The mall was developed by General Growth Properties, which also developed Colorado Springs' other major enclosed mall, The Citadel. The project was approved by county commissioners in 1974, construction began in late 1979, and the center officially opened on August 4, 1982. Sears and an adjoining six-screen cinema began operating several months earlier. The original anchor lineup also included H.J. Wilson's Catalog Showrooms, Kmart, and Fashion Bar. Chapel Hills expanded during the 1980s. A 135,000-square-foot addition opened in 1985 and included a Joslins department store, while a second expansion in 1986 added roughly 76,000 square feet, 60 storefronts, and a two-level Mervyn's. Joslins enlarged its space again in 1987. During the early 1990s recession, the mall experienced elevated vacancies and difficulty attracting retailers. Service Merchandise closed in 1994, and JCPenney subsequently occupied that space. The property later benefited from a major renovation program, new national retailers, expanded cinema capacity, an ice arena, restaurants, a Borders Books store, and other entertainment features. Anchor and ownership changes defined the next several decades. Joslins became Foley's in 1998 and then Macy's in 2006 after the May Department Stores acquisition. Mervyn's closed in 2006, with Burlington Coat Factory taking over the space in 2007. Dick's Sporting Goods opened in 2007 after the former ice arena area was repurposed. Kmart closed in 2009, and Old Navy relocated from the mall to a nearby strip center in 2011. Borders also closed during its parent chain's bankruptcy. A new 13-screen cinema opened in 2013, and H&M joined the tenant mix the same year. JCPenney left in 2014, while Gordmans briefly occupied its former space in 2016 and 2017. The mall's financial condition deteriorated during the late 2000s and 2010s. General Growth Properties filed for bankruptcy in 2009 and later classified Chapel Hills Mall as underperforming. In 2011, the property was sold to a partnership involving Coyote Management and Garrison Investment Group for $71.5 million. Garrison later became the sole owner. Foreclosure notices totaling approximately $37 million were reported in 2017. In 2018, a group including Namdar Realty Group acquired the mall for $33.5 million. This transaction followed the loss or threatened loss of several major anchors and gave Namdar a role in ownership of both major enclosed malls in Colorado Springs. Sears announced a 2018 closure that took effect in 2019. Burlington left its mall location in early 2020 after failing to reach a lease agreement and opened across the street in 2021. The mall temporarily closed for approximately one month in April 2020 in response to the COVID-19 pandemic and local health requirements. The former Sears building and associated parking areas were demolished in 2021 for a 300-unit suburban-style apartment development completed in 2023. More recent repositioning plans have included a proposed indoor pickleball facility in the former Burlington space and an interactive aquarium. The former Gordmans location became an American Freight store in early 2024, but American Freight announced a closure in November 2024. Chapel Hills Mall therefore represents a mature regional mall adapting through anchor replacement, mixed-use redevelopment, entertainment uses, and selective tenant repositioning.
History
Chapel Hills Mall originated as a General Growth Properties development in northern Colorado Springs. El Paso County commissioners approved the mall project in August 1974, but construction did not begin until late 1979. The enclosed center was completed by mid-1982 and opened officially on August 4, 1982. Sears and an adjoining six-screen theater began trading earlier that summer. The initial anchors were Sears, H.J. Wilson's Catalog Showrooms, Kmart, and Fashion Bar. The property expanded rapidly in the 1980s. A 135,000-square-foot addition opened in March 1985, primarily to accommodate Joslins. H.J. Wilson's became Service Merchandise after that chain acquired the business. A further expansion in September 1986 created approximately 76,000 square feet of additional space, 60 new storefronts, and a two-story Mervyn's. Joslins expanded again in 1987 by taking over vacant lower-wing space. The early 1990s were difficult. Recession conditions, vacancies, and the mall's concentration of discount-oriented anchors made it harder to attract some higher-end retailers. Vacancy reached roughly 15 percent, and Service Merchandise closed in 1994. JCPenney replaced it in 1995 with a store designed to appeal to more affluent shoppers. The mall recovered later in the decade through a reported $40 million renovation and a broader entertainment and retail program. Carmike Cinemas added six screens in 1996, Dillard's opened a new three-story anchor in 1997, and the center added an ice arena, Borders Books, Ruby Tuesday, a children's play area, a climbing wall, and additional national chains. Joslins became Foley's in 1998 after a series of department-store ownership changes. The 2000s brought further chain transitions. Old Navy opened its first Colorado Springs store at Chapel Hills in 2000. Foley's converted to Macy's in 2006 after Macy's acquired May Department Stores. Mervyn's closed its Colorado stores in 2006, and Burlington Coat Factory replaced it in 2007. The same year, Dick's Sporting Goods took over space created by the closure of the ice arena. Kmart shut down in 2009. During the Great Recession, General Growth Properties filed for bankruptcy, and the mall was subsequently characterized as underperforming. In June 2011, General Growth sold the property to Coyote Management LP and Garrison Investment Group for $71.5 million. The mall had a vacancy rate of about 15 percent at the time. Old Navy moved to a nearby strip center, and Borders closed after its parent company entered bankruptcy. Carmike opened a new 13-screen theater in 2013 in space associated with the original cinema and former Kmart area. H&M also opened at the mall in 2013. JCPenney closed in 2014 as part of a national program targeting underperforming stores. A proposed Toby Keith's I Love This Bar & Grill location in the former Borders space was later abandoned. Gordmans briefly used the former JCPenney space before closing in 2017 when its chain entered bankruptcy. Carmike became AMC after AMC acquired the cinema operator in 2017. Financial problems continued. Foreclosure notices totaling about $37 million were issued to Garrison Investment in 2017. In 2018, a coalition including Namdar Realty Group acquired Chapel Hills Mall for $33.5 million. The lower valuation reflected anchor departures and concerns about the property's future. Sears announced in 2018 that its store would close in 2019. Burlington left in early 2020 after failing to agree on a lease with the separate owner of its space and later opened across the street. The mall also closed for approximately one month in April 2020 because of the COVID-19 pandemic and related health mandates. The property has since pursued adaptive reuse and mixed-use repositioning. The former Sears building and parking lots were demolished in 2021 for a 300-unit apartment project completed in 2023. The former Gordmans space became an American Freight store in early 2024, although the retailer announced a closure later that year. Plans announced in 2024 called for an indoor pickleball complex in the former Burlington space and an interactive aquarium. These changes illustrate the mall's shift from a traditional department-store-centered format toward a combination of retail, entertainment, services, and nearby residential development.
- 2024
American Freight opens and announces closure
[1]American Freight opened in the former Gordmans space early in the year and later announced a November closure.
- 2023
Former Sears site becomes apartments
[1]A 300-unit apartment development built on the former Sears site was completed.
- 2018
Ownership changes to Namdar-linked coalition
[1]A coalition including Namdar Realty Group acquired the mall for $33.5 million.
- 2013
New cinema and H&M added
[1]A 13-screen Carmike theater opened, and H&M added a 21,904-square-foot store.
- 2006
Foley's becomes Macy's
[1]The Foley's store adopted the Macy's brand following Macy's acquisition of May Department Stores.
- 1997
Dillard's opens new anchor
[1]A newly constructed three-story Dillard's opened as part of the mall's late-1990s revitalization.
- 1996
Cinema expansion
[1]Carmike Cinemas added six screens in space formerly occupied by Furr's Cafeteria.
- 1986
Second 1980s expansion
[1]The mall added about 76,000 square feet, 60 storefronts, and a two-story Mervyn's.
- 1985
First major expansion
[1]A 135,000-square-foot addition opened, centered on a new Joslins department store.
- 1982
Mall officially opens
[1]Chapel Hills Mall officially opened on August 4 with Sears, H.J. Wilson's, Kmart, and Fashion Bar as original anchors.
Products and positioning
A large regional enclosed shopping and entertainment destination serving Colorado Springs, with a tenant strategy centered on department stores, national specialty retailers, cinema, food service, and adaptive reuse of former anchor spaces.
Retail · 1982
Department-store retail
The mall's department-store presence has included Macy's and Dillard's, alongside former anchors such as Sears, Kmart, Foley's, Joslins, Mervyn's, and JCPenney. These stores have historically provided apparel, home goods, cosmetics, furniture, and other broad merchandise categories.
Retail · 1982
Specialty retail
Specialty retail at Chapel Hills has included fashion, sporting goods, home furnishings, books, and value-oriented merchandise. Current or recent examples include H&M, Dick's Sporting Goods, and American Freight, while Old Navy, Borders, and Gordmans were former tenants.
Entertainment · 1982
AMC Theatres
The mall's cinema operation began with an adjoining six-screen theater before later expansions. Carmike opened a 13-screen replacement theater in 2013, and the location became part of AMC Theatres after AMC acquired Carmike in 2017.
Entertainment and leisure · 2024
Future recreational and experiential uses
Plans announced in 2024 included converting the former Burlington store into an indoor pickleball complex and adding an interactive aquarium. These proposals reflect the property's effort to supplement conventional shopping with experiential attractions.
Brand decisions
2024
Experiential redevelopment proposalsStrategyBackground
The mall had vacant or changing anchor spaces, including the former Burlington location.
Action taken
Plans were announced for an indoor pickleball complex in the former Burlington store and an interactive aquarium elsewhere in the mall.
Aftermath
The proposals indicated an effort to diversify the property beyond conventional retail, although the reference material does not establish completion.
2021
Former Sears site converted to residential useStrategyBackground
Sears had closed its mall location in 2019, leaving a large former anchor building and associated parking areas.
Action taken
The building and parking lots were demolished to make way for a 300-unit suburban-style apartment development.
Aftermath
The apartment project was completed in 2023, adding residential use adjacent to the mall.
2020
Temporary pandemic closureStrategyBackground
The COVID-19 pandemic and related local health mandates disrupted retail and entertainment operations.
Action taken
Chapel Hills Mall temporarily closed for approximately one month in April.
Aftermath
Retail operations later resumed, while the property continued to reposition around changing tenants and redevelopment.
2018
Acquisition by Namdar-linked coalitionM&ABackground
The mall faced foreclosure pressure and had lost or was at risk of losing several prominent anchor tenants.
Action taken
A coalition including Namdar Realty Group purchased the property.
Aftermath
The acquisition placed Chapel Hills Mall under the same broad ownership control associated with The Citadel, Colorado Springs' other enclosed mall, and was followed by additional anchor replacement and redevelopment efforts.
Sale price. $33.5 million (2018)
2011
Sale following General Growth Properties bankruptcyM&ABackground
After General Growth Properties entered bankruptcy and Chapel Hills was categorized as an underperforming mall, ownership pursued a sale while vacancy was reported at approximately 15 percent.
Action taken
General Growth sold the mall to a partnership between Coyote Management LP and Garrison Investment Group.
Aftermath
Garrison later became the sole owner, but the property continued to experience anchor departures and financial stress.
Sale price. $71.5 million (June 2011)
Recent events
Burlington closes Chapel Hills Mall store[3]
Reported:
Burlington closed its store at Chapel Hills Mall in Colorado Springs in late January after it and the building owner failed to reach a new lease agreement.
Sources4 sources
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