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COLORADO REAL ESTATE JOURNAL
— October 21-November 3, 2015
Retail
by John Rebchook
Older, strip retail centers in the
Denver area have become hot
investment properties.
The latest example of a buyer
picking up one of these value-add
deals was McCain Properties II
LLC.
The limited liability company,
headed by longtime local real
estate investor Doug McCain,
recently paid $5 million for the
34,269-square-foot Hillcrest Plaza
shopping center inNorthglenn.
The sales price of the property
at 1400-1490 104th Ave. equates to
$145.90 per sf.
Marc Lippitt, Schott Shwayder
and Justin Herman of Unique
Properties LLC-TCN Worldwide
handled the sale of the property.
The seller was R Savageau LP.
“It was a family decision to sell
it,” Lippitt said.
“It had been owned by the same
family for probably 25 to 30 years.
A number of the family members
thought this was a good time to
liquidate some of their assets and
this was one of them.”
They picked a great time to sell,
as interest inall kinds of retail prop-
erties in the Denver area has never
been stronger, Lippitt said.
“Denver is so hot right now that
anytime anything goes on themar-
ket, there are a number of buyers
out there waiting to snap it up,” he
continued.
He said they received multiple
offers forHillcrest Plazaand itwent
under contract very quickly.
“Anything with ‘value-add’ in it
is especially sought after,” because
investors can typically get a very
high return on any improvements
to the property, he said.
“Doug will probably put a cou-
ple of hundred thousand dollars
into this property,” said Lippitt,
who has been working with him
for the past 23 years.
“The location is great,” Lippitt
said about Hillcrest Plaza.
“It is in a very nice part of North-
glenn,” he said.
The center, he said, “is not in dis-
repair,” but “it needs some updat-
ing and there is room for improve-
ment as far as both the leasing and
physical condition. Really, it needs
some TLC and Doug has a long
history of going in and upgrading
and repositioning properties.”
Anumber of the tenants are pay-
ing below-market rents, he said,
providing an upside to the new
owner.
“There’s a Budget Car Rental
there, but it also has a lot of mom-
and-pops,” Lippitt said.
Hillcrest Plaza, built in 1973, was
92 percent occupied at the time of
sale. It sold for an 8.11 cap rate.
Lippitt saidhedoesnot see inves-
tor interest diminish for these types
of neighborhood strip centers.
“People are always going toneed
these kinds of retail centers where
you go to get your haircut or have
lunch in a Mexican restaurant,”
Lippitt said. “Those are the kinds
of services you can’t get online.”
Other News
n
It’s official.
Uniqlo,
a Japanese
casual wear clothing store, will
lease 27,500 square feet at Trem-
ont Place and the 16th Street Mall,
whereBarnes&Nobles is currently
located.
Barnes &Nobles, an original ten-
ant at the Pavilions, will close at the
end of the year.
Mark Sidell,
presi-
dent of
Gart Properties,
the owner
of the Pavilions, last summer, said
the bookstore wanted to stay open
through the Christmas shopping
season.
n
An unidentified buyer paid
$3.25 million, or $220.04 per sf, for
the 14,770-sf Twenty Mile Depot at
18951 E. Mainstreet, in Parker. The
sale was handled by
Trevey Land
and Commercial.
s
Shown is the Hillcrest Plaza in Northglenn
