April 20-May 3, 2016 —
COLORADO REAL ESTATE JOURNAL
— Page 13
Retail
by John Rebchook
Chris Wiedenmayer and Peter
Peluso of Legend Investment
Group recently represented the
sellers of three
retail
cen-
ters, which
together sold
for almost $10
million.
The larg-
est deal was
the $6.7 mil-
lion sale of a
13,650-square-
foot
Wal-
greens
at
18550 Green
Valley Ranch.
The prop-
erty was sold
to a Chicago-
area
buyer
in a 1031
exchange.
W i e d e n -
mayer and
Peluso could
sell these kinds of single-tenant
deals anchored by a national,
creditworthy tenant like Wal-
greens all day long.
“Investors really like these kind
of deals to hold as long-term
investments,”Wiedenmayer said.
It’s a way of mitigating volatil-
ity with a steady flow of income,
he said.
“They are coupon clippers,”
Wiedenmayer said.
They are especially sought after
in today’s low-interest-rate envi-
ronment, when bonds are yield-
ing almost nothing, he said.
“Cap rates are really low, but
they are still more than you can
get from bonds,” he said.
The Walgreens center was built
in 2005.
Walgreens signed a 75-year
lease for the building in 2006. Its
first right to terminate is in 2031.
“The property has great vis-
ibility and strong store sales,”
Wiedenmayer and Peluso wrote
in their listing brochure for the
Walgreens.
The center is near other retail-
ers such as TCF Bank, Dunkinʼ
Donuts, McDonalds, Wendy’s,
Grease Monkey, Taco Bell, 7-Elev-
en, Carl’s Jr., Chase Bank, H&R
Block and Dominoʼs.
The second largest of the three
deals was a $1.73 million sale for
Buckley Square, a 3,436-sf, two-
tenant retail center at 16900 E. Iliff
Ave., Aurora.
It is 100 percent leased to
Sprint, which takes 1,736 sf, and
T Mobile, which leases 1,700 sf.
“It was built in the 1980s and
originally was a bank, but the
bank went dark in 2012,” Wie-
denmayer said.
T Mobile and Sprint stepped in
and leased the space.
“They each had about 2.5 years
left on their lease, so we reached
out to them and extended their
leases to five years,”Wiedenmay-
er said.
“The longer leases added quite
a bit of value to the property,” he
said.
Within a 3-mile radius, there
is a population of 160,051 with
an average household income
of $65,753. Extend the radius
another 2 miles and the popula-
tion jumps more than double, to
333,510.
A West Coast-based buyer
bought the building in a 1031
exchange.
In the third deal, they sold a
3,572-sf retail center at 8630 Green
ValleyRanchBlvd. inGreenValley
Ranch.
The property was sold to a
group of local investors, who out-
bid several other groups.
The center was built in 2012 and
about 80 percent occupied.
“The buyer was a corporate guy
who is purchasing the real estate
for his future,”Wiedenmayer said.
The center checked off quite a
few boxes for him.
“He wanted newer construc-
tion, he likes the location and he
liked that it has some vacancies,”
Wiedenmayer said.
“The empty space gives it a val-
ue-add component,” he said.
Tenants in the center include
Dominos, H&R Block and White
Fence Farms. The center is shad-
ow-anchored by a King Soopers
and aWalgreens.
Within a 1-mile radius, there are
14,052 people. The median house-
hold income is $65,259. Within a
5-mile radius, there is a population
of 112,859 and a median house-
hold income of $69,517.
The area is expected to grow
by more than 11 percent between
now and 2020.
“That area just keeps getting
better,” Wiedenmayer said. “A
light-rail station is king out there,
Panasonic is going to build that
beautiful campus, and the Gay-
lord convention center is being
built inAurora,” he noted.
Other News
n
The
Bonfils Blood Center
leased 1,963 square feet at
High
Pointe on Parker
at 10233 S.
Parker Road.
Michael Quintan
of
Newmark Grubb Knight Frank
represented the landlord in the
transaction.
Cresa Denver
repre-
sented Bonfils.
s
Shown is the retail center in Green Valley Ranch, which has a value-add
component
Shown is the Walgreens that Legend sold for $6.7 million.
Shown is Buckley Square in Aurora.
Chris Wiedenmayer
Peter Peluso
