Colorado Real Estate Journal - December 3, 2014
The Zurich Insurance Group, commonly known as Zurich, recently paid $17.2 million for the recently completed, Sprouts-anchored Markets on Broadway shopping center in Englewood, near Cherry Hills Village. Zurich, based in Zürich, Switzerland, outbid numerous others for the sought-after property, said Brad Lyons, who represented the seller with fellow CBRE team members Matthew Henrichs, Kyndal Hayes, Ron Urgitis and Brady O’Donnell. The seller was Denver-based Cadence Capital Investment, headed by real estate veteran Bill Rothacker. The sale price equates to $483.40 per square foot for the two-building, 35,581-sf center that was 100 percent leased at the time of the sale. In addition to Sprouts Farmers Market, other tenants in the center include Five Guys Burgers and Fries, Mattress Firm, SuperCuts and Jersey Mikes. “This was one of the premier core retail assets in the Denver area,” Lyons said. “It generated a tremendous amount of interest,” he said. “These types of opportunities do not become available that often.” There was widespread interest from prospective buyers, both in- and out-of state. “There was a lot of institutional interest and interest from some private guys,” Lyons said. This marks Zurich’s first purchase in the Denver area, he said. “Colorado has been on their targeted ‘buy’ list for quite some time,” said Lyons, who dealt with the international insurance company’s New York office. The sale reflects the stature of Denver from the perspective of institutional investors that invest in real estate globally, Lyons said. “Denver is moving into one of the ‘gateway’ markets from institutional investors that in the past might have only looked at cities in California and the East Coast, and Chicago,” Lyons said. Institutional investors are finding markets such as Denver more attractive than other markets, where prices offer slim rewards. “I think everyone knows that a grocery-anchored center such as Markets on Broadway sells for a lot per pound,” Lyons said. In this case, the center was even more sought after than a typical suburban groceryanchored center. “It’s really an infill development that is very close to Cherry Hills Village, which has the highest demographics in the Denver area,” Lyons said. “There just aren’t many examples of centers like this one, because of its infill nature.” The Los Angeles-based Wilson Retail Group represented Zurich. Wilson did not name Zurich, only describing it as an international insurance company. The buyer paid all cash, according to Wilson. “This newly constructed, high-quality asset in a thriving Denver submarket offered the key fundamentals it was seeking, including ease of management and a full roster of national tenants on long-term leases,” said Geoff Tranchina of Wilson. “Situated on just under three acres, the Markets on Broadway is well-located on the northwest corner of Belleview Avenue and Broadway, one of the busiest traffic corridors in the area,” Tranchina said. “It is also less than one mile from Cherry Hills Village, one of Colorado’s most affluent residential communities,” he said.