Colorado Real Estate Journal - February 4, 2015
A Chicago-area real estate investment trust has paid $52.25 million for the Quebec Center in Stapleton and a nearby small strip retail center. Inland Real Estate Trust, based in Oak Brook, Illinois, purchased the center from Quebec Square 36 CML LLC, based in Solana Beach, California. Combined, the two centers have 191,029 square feet. Public records show that Inland paid $43.4 million for the 149,697-sf Quebec Center. The center is shadow anchored by several big-box tenants that were not part of the sale. The limited liability company purchased Quebec Center in 2013 from Forest City, the developer of Stapleton, for $34.25 million. In other words, it sold it for a 26.7 percent return after two years of operating Quebec Center. The LLC paid $228.70 per sf to Forest City for Quebec Center and sold it for $289.92 per sf. Inland paid about $8.85 million for the 8,966-sf strip center, or $382.43 per sf. Tenants in the strip center include the UPS Store, Westerra Credit Union, Panera Bread, Jimmy John’s, AT&T, Panda Express and American Family Insurance. Quebec Square is 97 percent occupied and tenants include PetSmart, Ross Dress for Less, Office Depot, Party City, Big 5 Sporting Goods, Subway and the Colorado Technical University. The property is shadowanchored by a Walmart Supercenter, Sam’s Stapleton and a Home Depot. Stapleton is a vibrant real estate market, said John Winslow, principal of Winslow Property Consultants. “It is in one of the strongest markets in Denver with the residential sales in the Forest CityStapleton area,” said Winslow, who was not involved in the transaction, but is a longtime observer of the Denver commercial real estate market. “The demographics are there for just about any type of business,” Winslow said. There are 10,327 people and 3,937 households within a onemile radius of Quebec Square at 7506. E. 36th Ave. The average household income within a one-mile radius is $73,137 and the median household income is $46,369. The median age is 35. Within a three-mile radius population and households are about 10 times larger, with a population of 107,796 and 29,823 households, although the average and median incomes are about the same as within a one-mile radius. “We are pleased to add this property to our retail portfolio, as it matches our long-term strategy of investing in multitenant, necessity-based retail properties, and believe it is well-positioned for future growth,” the REIT said in a statement. “We believe Quebec Square is a dominant retail property with a solid national and regional tenant lineup, strong demographics and an ideal location trafficked by more than 65,000 vehicles per day,” said Christopher Covey, senior vice president of transactions for Inland American. Inland American said it believes there are limited competing properties in the area and limited vacant land for future retail development, which should continue the center’s experience of strong tenant demand and lease renewals. As of Sept. 30, Inland American owned 203 properties, representing approximately 23.5 million sf of retail, industrial and office space, 8,318 student housing beds and 12,797 hotel rooms.
Sun Development LP paid $1.4 million to Silco Oil Co. for a 20,685-square-foot gas station at 12060 Sable Blvd. in Brighton. Michael Bright and Dan Clayton of BRC Real Estate, which is headquartered in Highlands Ranch, represented the seller in the transaction. In another deal in which Bright and Clayton represented Silco, KMR Real Estate LLC paid $1.15 million to Silco for a 2,390-sf gas station at 295 S. Broadway in Denver. Smoker Friendly, a tobacco store, leased 5,150 sf at the Arvada Square Shopping Center at 9277 Ralston Road in Arvada. Gene Stone of Antonoff & Co. Brokerage Inc. was the listing broker in the transaction. Rich Otterstetter of the Crosbie Real Estate Group was the cooperating broker.