December 2-December 15, 2015 —
COLORADO REAL ESTATE JOURNAL
— Page 7AA
Retail
by John Rebchook
It was if all of the real estate
stars aligned on the recent $6.3
million sale of the Parkridge
Plaza center in Lakewood.
“Any deal in the Denver area
market these days generates
quite a bit of interest,” and this
center was no exception, said
Matt Ritter, a principal of Pin-
nacle Real Estate Advisors, who
listed and sold the office and
retail center with business part-
ner Jeff Johnson.
Ritter did not identify the
buyer of the property, but
records show
Larry
and
J u d i t h
Chavez pur-
chased it.
“He was a
really good
buyer for this
type of prop-
erty,” Ritter
said.
He had sold
an apartment building and was
looking for a replacement prop-
erty for a 1031 exchange to defer
capital gains.
“The benefit to him is that
he probably sold his apartment
building at a 5.5 cap and then
bought this at probably a 7.5 or
7.75 cap,” Ritter said.
The sale price equates to
$101.89 per square foot for the
61,832-sf property.
Parkridge sits on a four-acre
site at 2009-2099 Wadsworth
Blvd. and was built in 1979.
The sellers, a group of local
investors, purchased the prop-
erty in 2013, when the property
was 75 percent occupied.
They invested some money on
capital improvements and hired
Pinnacle Real Estate Manage-
ment, or PREM, to manage and
lease the center, which is 79 per-
cent retail and 21 percent office.
PREM was able to drive the
occupancy to about 94 percent
when it sold, he said.
“One thing that is really key
to the success of these types of
mom-and-pop centers is good
management,” Ritter said.
“The management team has to
be very responsive,” Ritter said.
“If you get a call from a tenant
interested in 2,000 square feet,
you say, ‘I’ll meet you there in
an hour.’”
While these types of centers
are not as in demand as grocery-
anchored centers, Ritter said
Parkridge Plaza had more going
for it than many centers of the
same vintage.
“Sometimes these older cen-
ters don’t have great visibility
and locations, but Parkridge is
very close to Wadsworth and
(West) Colfax,” and is ghost
anchored by big-box retailers
like Walmart and Home Depot.
The site also is near the Wad-
sworth Boulevard light-rail sta-
tion and is about a seven-min-
ute drive north of Belmar.
Ritter said that there are
groups like the sellers who buy
these value-add deals, fix them
up, improve the management
and then sell them for a profit.
“A lot of current owners of
these little strip centers can
make good money by selling in
today’s market,” Ritter said.
“But they look around where
they would put their money
if they sold and they don’t see
many better opportunities out
there,” Ritter said.
The lack of assets for sale,
in turn, drives up the price of
properties that do hit the mar-
ket, he concluded.
Other News
n
I Love Kickboxing
leased
2,948 square feet in the Drans-
feldt Business Center at 10140
Parkglenn Way, Units C and
D, in Parker. The brokers in the
transaction were
Mitch Trevey
and
Nick Nickerson
of
Trevey
Land and Commercial.
n
Front Range Smiles,
head-
ed by Dr. Nathan Cejka, signed
a 10-year lease for 2,395 sf at
the Twenty Mile Mercantile
center at 18551 E. Mainstreet in
Parker. Trevey and Nickerson
handled the transaction.
s
Parkridge Plaza in Lakewood sold for $6.3 million.
Matt Ritter
