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Page 10AA — COLORADO REAL ESTATE JOURNAL — June 17-June 30, 2015
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Retail
by John Rebchook
Retail centers anchored by a
King Soopers or a Safeway are
highly sought-after and com-
mand a premium from inves-
tors.
However, in many cases,
the grocer owns the real estate
in the center, so they are not
included in the sale.
In one recent case, an investor
did buy a center anchored by
a Safeway, which was owned
by the center’s owner, Denver-
based Etkin Johnson Real Estate
Partners.
However, last month it was
announced that the Safeway in
the Summer Valley Shopping
Center at the northeast corner
of Quincy Avenue and South
Buckley Road would be one of
nine in the Denver area that will
be closed.
The 53,426-square-foot Safe-
way will close in November,
said JLL broker Jason Schmidt,
who sold the center with part-
ner Patrick Devereaux.
The buyer was Dallas-based
Leon Capital Group, which paid
$10.6 million for the 99,335-sf
property on 9.53 acres at 16911-
16981 E. Quincy Ave.
The possibility of the Safeway
closing was known at the time
of the sale, Schmidt said.
That impacted the price, but
Etkin Johnson, which bought
the property more than two
decades ago, still doubled the
$5.5 million it paid for Summer
Valley in 1993.
Leon Capital paid $100.67 per
sf for the center, built between
1982 and 1983, while Etkin
Johnson had paid $55.37 per sf.
It sold for a 7.82 cap, while
centers that include the grocer
anchor have been selling for 5
and 6 caps, Schmidt said.
Still, there was a lot of interest
in Summer Valley from pro-
spective buyers, Schmidt said.
“We had multiple offers,”
Schmidt said. “It is really good
real estate. It is at one of the
strongest intersections in Auro-
ra. And it is very close to a King
Soopers, Target and other retail-
ers.”
Even though the Safeway in
the site takes up more than half
of the space at Summer Val-
ley, Schmidt doesn’t think Leon
Capital will have much trouble
backfilling the space.
“If you go out to a three-mile
radius, the average household
income is $86,000, which is pret-
ty strong for southeast Aurora,”
Schmidt said.
Etkin Johnson initially mar-
keted the property for sale in
2007.
However, a former dry-clean-
ing operation on the site con-
taminated the land underneath
Summer Valley.
Etkin Johnson hired Terracon
Consulting Engineers and Sci-
entists to clean up the site. The
Colorado Department of Public
Health and Environment last
fall gave it a clean bill of health.
“Summer Valley Shopping
Center was a long and success-
ful holding for Etkin Johnson
and its investors,” said Barbara
Grogan, executive vice presi-
dent for the company.
“Our focus on best-in-class
management, preventive main-
tenance and responsive service
allowed us to retain the asset in
excellent condition for 22 years,
making it an exceptional invest-
ment opportunity for a quali-
fied group.”
Etkin Johnson will invest the
proceeds in other asset classes.
Etkin Johnson sold Summer Valley Shopping Center in Aurora.