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March 4-March 17, 2015 — COLORADO REAL ESTATE JOURNAL — Page 33
Retail
by John Rebchook
A Los Angeles-based invest-
ment group recently purchased
a shopping center in the highly
sought-after Golden market.
Kallis Management Co.
paid $5.25 million for the
13,865-square-foot Interplaza
Shopping Center at 16950 W.
Colfax Ave.
The sales price equates to
$378.65 per sf.
Tenants in the center, con-
structed in 2008, include the
Colorado Department of Motor
Vehicles, Subway and Lilʼ Ricci's.
It was 90 percent leased at the
time of sale.
It is shadow-anchored by
Kohl’s, Home Depot, Petco,
Golfsmith and two hotels, noted
Jeff Hallberg of Ascent Property
Advisors, who represented the
seller in this transaction.
“It’s also not very far from
Stevinson Toyota and Colorado
Mills,” Hallberg said.
He said the seller was not
motivated to sell.
“We had it on the market for a
little while,” Hallberg said.
“Definitely, we had a lot of
interest in it,” he said.
“But my client was not a moti-
vated seller. The price had to be
right for them to sell,” Hallberg
said.
He said he thinks Kallis owns
at least one other shopping cen-
ter in the metro area.
“I think what they liked about
it is its location and it is an
anchored center,” Hallberg said.
“It has strong traffic and good
population demographics,” he
said. “It is on a good west-side
commercial corridor and rents
are high.”
The average daily traffic count
in the area is 173,900 and there is
more than 1 million sf of office,
industrial and retail space with-
in a two-mile radius.
He does not think it sold for a
record price per sf.
“I think there have been some
small, multitenant buildings
closer to the Stevinson Toyota
dealership that have sold for
more per sf,” Hallberg said.
There is a lot of interest from
investors for these small, mul-
titenant neighborhood centers,
especially in a strong market
such as Golden, he said.
However, they are not the
most sought-after retail product
type.
At the top of the food chain
for retail investors are triple-net
developments anchored by sin-
gle, national tenants, he said.
Investors like those because
of assured income from strong,
national tenants and little down-
side risk.
Also popular among a differ-
ent type of investors are value-
add opportunities, he said.
Interplaza is not a value-add
deal, as it needs no upgrades,
he said.
Kallis was in a 1031 exchange
for the property, he said.
Mark Hoekstra from the Heri-
tage Group in San Diego repre-
sented Kallis in the transaction.
If Kallis wishes to expand its
footprint on the site, there is an
adjacent property to it that is
not owned by the seller of Inter-
plaza, Hallberg said.
Other News
n Wheat Ridge Golf LLC, a
local group, recently paid $3.05
million for the Paramount
Heights Shopping Center at
10019-10055 W. 26th Ave. in
Wheat Ridge.
The 60,000-square-foot cen-
ter, on 3.55 acres at the north-
west corner of 26th Avenue and
Kipling Street, is more than 60
years old.
The seller owned and oper-
ated the 12,000-sf Gold’s Gro-
cery on the site for more than
30 years.
The buyer plans to renovate
the center and find a new tenant
for the former Gold’s Grocery.
Greg Knott and Zach Smith of
Unique Properties Inc. repre-
sented the seller in the transac-
tion. A 200-foot-tall cell tower
also was part of the sale.
n The Colorado Muslim
Community Center paid slight-
ly more than $1.57 million, or
about $68 per sf, for the 23,125-
sf former Mission Viejo Recre-
ation Center at 15528 E. Hamp-
den Circle in Aurora.
The property, on 4.21 acres,
has a full-size indoor swimming
pool, six racquetball courts, a
fitness area, meeting area and
three outdoor tennis court. The
CMCC plans to use it as a rec-
reation facility and a meeting
center for its members.
Greg Knott, Zach Smith and
Ilya Klein of Unique Proper-
ties represented the seller in the
transaction. PK Kaiser of Capital
Brokers represented the buyer.
n An unidentified buyer paid
$575,000, or $159.72 per sf, for a
3,600-sf retail property at 4284
Trail Boss Drive in Castle Rock.
Eric Shaw of Pinnacle Real
Estate Advisors LLC represent-
ed the seller in the transaction.
“The property was 100 percent
leased at the time of sale by two
retail tenants with approximate-
ly four years left on their lease
for each tenant,” Shaw said.
The property sold for a 7.3
percent cap rate.s
CoStar Group
Kallis Management purchased the Interplaza Shopping Center in Golden.