Colorado Real Estate Journal - August 15, 2018
Long-term potential drew a buyer to a dark Walmart in Denver. Newberry Family LLC purchased 3125 S. Sheridan Blvd., a former Walmart Neighborhood Market, for $6.2 million, according to public records, from Duke Family Partnership LLC. The 39,088-square-foot building is situated on a 5.1-acre lot at the property, located at the intersection of Sheridan and Dartmouth Avenue, across from a King Soopers-anchored center. The building, constructed in 2014 for Walmart, which occupied the space on a ground lease, offered a unique opportunity as there remains “significant” term left on the lease. “It’s a great piece of property that provides income in the short- to midterm with corporately guaranteed passive income but also provides a great redevelopment opportunity some time down the road, which is what the buyer was looking for,” said Drew Isaac of Marcus & Millichap. Isaac and Brian Bailey of Marcus & Millichap listed the property, which Walmart vacated in March 2017. “There was a lot of interest in the location and the real estate,” added Isaac. “The challenge was a lot of buyers wanted to redevelop the site immediately or were looking for long-term, passive income. The buyer was a rare breed in that it wanted passive income in the short term and redevelopment in the long term.” The buying entity is controlled by Paula NewberryArnold and her son, Kien Arnold, who own the floral shop Newberry Brothers. Other News A 1031 exchanger out of California recently purchased a single-tenant, net-leased 7-Eleven in Broomfield for $3.21 million. The property, which opened in 2018, is located at 11275 Main St. The 3,062-square-foot 7-Eleven is part of the Gateway at Broomfield shopping center, currently under development by United Properties. The 15-year corporately guaranteed lease features rental escalations every five years. “The buyer was looking to trade into a long-term, stabilized deal that would offer him stabilized cash flow for the near future in a fast-developing area of the Denver MSA,” stated Chris Wiedenmayer of Legend Investment Group, a division of Legend Partners LLP, who handled the transaction. An Arby’s that is part of the redevelopment of the Huron Center in Northglenn recently sold for an undisclosed price. The Arby’s, which occupies the approximately 2,400-sf property at 850 104th Ave. on a ground lease, has a 20-year primary term. A local 1031 exchange buyer purchased the property from the developer. Additional details were not disclosed. Drew Isaac of Marcus & Millichap handled the sale. Evergreen Development is redeveloping the former Albertsons/Rite Aid building at the center at 104th and Huron Street. The Denver Premium Outlets not only announced its grand opening for Sept. 27 but also additional stores that will join the center at Interstate 25 and 136th Avenue in Thornton. New stores include: Ann Taylor Factory Store, Calvin Klein, Christopher & Banks, Loft Outlet, Merrell, Tommy Hilfiger, Vineyard Vines and Volcom. Previously announced tenants at the center include American Eagle Outfitters, A|X Armani Exchange, Banana Republic Factory Store, BossHugo Boss, Coach Outlet, Cole Haan Outlet, Kate Spade New York, Michael Kors, Nike Factory Store, Polo Ralph Lauren Factory Store and Under Armor. Simon Property Group is developing the Denver Premium Outlets. Rent-A-Center renewed its lease at Friendship Square, a Safeway-anchored shopping center at 1515 E. Bridge St. in Brighton. It renewed 5,012 sf for an additional five years. Great Wall Chinese Restaurant also renewed for five years at the center. It occupies 1,033 sf. The property is 100 percent leased. John V. Propp of John Propp Commercial Group handled the renewals. TM Ballroom Dance Inc. leased 2,699 sf of retail space at 12354 W. Alameda Parkway, No. 160 and 170, in Lakewood. The tenant was represented by George Moseley of SheldonGold Realty Inc. The unnamed landlord was represented by Mark Bennett of Westar Real Property Services.