Colorado Real Estate Journal - November 19, 2014
A sought-after retail center in Colorado Springs sold for $310 per square foot to a buyer making its second acquisition in the city. The California-based buyer paid $4.63 million for Northgate Plaza Shopping Center, a five-tenant, 14,936-sf inline center that is part of a larger retail development with several additional pad sites as well as a grocery store that is expected to open in 2015. “We received strong interest in this asset from the beginning, including two offers at our full asking price, which demonstrates the demand for newer retail properties in Colorado,” said Troy Meyer of Sperry Van Ness. “Northgate Plaza Shopping Center is a good representation of where the Colorado Springs market is and the increased national demand for retail in communities like Colorado Springs. “The buyer used this purchase as part of his down leg in a 1031 exchange and was attracted to the property because of the location, strong tenancy and stable future cash flows,” added Meyer, who represented seller Northgate Properties LLC out of Colorado Springs with Dean Corey and Kevin Matthews, also of Sperry Van Ness. Constructed in 2008, Northgate Plaza Shopping Center was 100 percent leased to five tenants, El Padrino Mexican Restaurant, Thuy’s Nails & Spa, Integrity Urgent Care, The Studio for Exceptional Dentistry and Pizza Hut. The lack of a national credit tenant at the center, however, didn’t faze interested buyers, commented Meyer, noting the center at 13425-13461 Voyager Parkway is well located in an affluent area of the city and all of the tenants are on long-term leases.