Colorado Real Estate Journal - May 1, 2019
A buyer new to the Colorado Springs market purchased a renovated neighborhood shopping center at an 8.22% cap rate. Burltex Partners LLC purchased the 18,410-square foot center from Astrozon Plaza LLC, according to public records. The buyer, which owns additional properties in the Denver metro area, paid $2.09 million for the center built in 1985 at 3730-3770 Astrozon Blvd. “We received strong interest in the property and we went under contract with a California-based 1031 exchange buyer within the first week of marketing the property,” said Marcus & Millichap’s Cory Gross. “The high occupancy and below market rents coupled with the strong cash flow potential attracted a wide range of buyers throughout the U.S. We continue to see strong demand for well-located retail assets in the Colorado Springs market due to the solid local economy and sound market fundamentals.” Gross and Jake Shirek of Marcus & Millichap represented the seller, a private investor. The buyer was represented by Brian C. Smith, also of Marcus & Millichap. Phillip Gause, first vice president capital markets of Marcus & Millichap Capital Corp. facilitated the loan for the buyer. The center, occupied by mostly local service-oriented tenants, including Havana Grill and a veterinary clinic, was 100 percent occupied at the time of sale. The buyer is anticipated to make a few more improvements to the inline center and stabilize rents, which are a “little” below market levels, according to the Marcus & Millichap.