Colorado Real Estate Journal - February 17, 2021
COLORADO SPRINGS – Polaris Pointe Court Real Estate LLC purchased the 9,100-square foot, multitenant retail property at 13492 Bass Pro Drive in Colorado Springs from seller Northgate Polaris Capital LLC, according to public records. The property traded for $5.1 million, with FirstBank providing a $3.5 million loan for the acquisition. Brad Lyons, Matthew Henrichs and Parker Brown of CBRE Capital Markets represented the seller, a private developer. The property, built in 2019, was 100% occupied at the time of purchase by tenants Vanguard Dermatology, Dental Nook, OrangeTheory Fitness and Vitality Bowls. Lyons, Henrichs and Brown also represented sellers in three other recent retail property sales in Colorado Springs and Denver. A private investor acquired Ridgeview Marketplace, the 21,008-sf retail center at 5980 Stetson Hills Blvd. in Colorado Springs, from an institutional owner for $3.58 million. The property was fully leased at the time of sale to Summit Dance Works, Conrad Chiropractic & Wellness, Elements Massage, Strive Physical Therapy, Valor Flooring and Republic of Paws. Crosslantic LLC, an out-of-market 1031 exchange investor, purchased Powers Peak Center, the 7,500-sf retail strip center at 5620 Woodmen Road in Colorado Springs, from seller Windsong Colorado LLC, according to public records. The property, which sold for $2.73, was fully leased at the time of sale to Subway, Cost Cutters, GameStop and Batteries Plus. Lastly, a private, local investor purchased The Laurel, the 3,700- sf, single-tenant, fully leased retail property at 115 Steele St. in Denver, from Tebo Properties for $2.6 million. Elite Body Sculpture occupies the property. Other News ASPEN – CBRE was awarded the leasing assignment for a 4,000-square-foot retail space under redevelopment at 420 E. Hyman Ave. in Aspen. Bryan Semel of CBRE began marketing the space last month. According to CBRE representatives, the development will feature retail space on the basement and ground floors. The project also will include a floor of affordable housing units for future employees, totaling 2,865 sf, and a penthouse unit, totaling 2,081 sf. Semel said leasing activity has been strong in the first weeks of marketing, with multiple national and international luxury brands showing interest in the property. He said, so far, the main driving factor for tenants is the affordable housing opportunity, which is rare in Aspen. The project is expected to wrap up this summer, with any secured tenants moving in shortly after its completion. CASTLE ROCK – Red Snips LLC purchased the 11,143- sf, vacant retail building at 970 Park St. in Castle Rock from seller Marina Blue Holdings LLC for $2.65 million, or $237.82 per sf. Justin Rayburn of Fountainhead Commercial represented the buyer, while Robert Lawson and Jamie Mitchell of Pinnacle Real Estate Advisors represented the seller. According to Lawson, he and Mitchell began marketing the property for sale in September. He said buyer interest was very strong, even after the property went under contract. He attributed buyer interest to the property’s location on a signalized intersection and its flexible zoning. DENVER – A New York based 1031 exchange buyer purchased the 862-sf retail property at 4601 N. Peoria St. in Denver from an Oregon-based developer. The property traded for $2.24 million. Spencer Henderson of B+E represented the buyer, while Chris Hollenbeck of Cushman & Wakefield represented the seller. Dutch Bros. Coffee occupies the property under a triple-net lease that has 15 years remaining. Henderson said the buyer is a firsttime net-lease retail investor that sees Denver as a fast-growing, robust market. “The net-lease market has been extremely resilient, and good product like this Dutch Bros. property moves fast,” said Henderson. “We are always happy to execute for a client within a tight 1031 timeline.” WHEAT RIDGE – Buyer 5250 W 38th Ave LLC purchased the 7,370-sf retail property at 5250 W. 38th Ave. in Wheat Ridge from seller WR Gateway I LLC for $1.43 million. Laurie Middleton Mann of Milehimodern represented the buyer, while Earl Duffy and Greg Knott of Unique Properties represented the seller. According to Duffy, before listing the property, the seller gutted the former pool hall, making it available for a variety of users. The Unique team began marketing the property for sale in June and saw significant interest because of its core-and-shell condition, Duffy said. Buyers also liked the property’s new facade and rear parking, he noted. The buyer, also known as Vital Gym, plans to open a private personal training facility at the property. It will be the buyer’s second location, in addition to its existing space at 800 Lincoln St. in Denver. RALEIGH, North Carolina – Denver-based Baceline Group, a boutique private real estate investment and management company, purchased Farmington Square, a 24,870-square-foot retail property in Raleigh, North Carolina, and Ahwatukee Commons, an 18,640-sf shopping center in Phoenix. These acquisitions bring Baceline’s Core Income Fund to 69 properties, making it the largest and most diverse fund in the history of the firm. Brian Capstick of Baceline Group said the company, which primarily invests in neighbor hood shopping centers, had a successful 2020, despite challenges to the retail market posed by COVID-19. “We had a record-setting year in 2019, but 2020 turned out to be much more rewarding , ” said Capstick. “Because of our diverse tenant base and the necessity of the types of businesses in our centers, our tenants were resilient during the height of the pandemic closures and restrictions. During 2020, we focused on supporting our small-business owners through strategic and innovative approaches that ultimately showed the stability of necessity based, neighborhood shopping centers.” Baceline Group adds the recently acquired assets to its core income portfolio, which comprises more than $380 million of assets across 15 states. COLORADO SPRINGS – Olympic City LLC purchased the 6,746-sf, single-tenant retail property at 817 Village Center Drive in Colorado Springs from seller FirstBank for $1.45 million. David Schroeder of Cushman & Wakefield Colorado Springs Commercial represented the buyer, while Bob Garner and Randy Dowis of NAI Highland Commercial represented the seller. The property sits on a pad site at the Safeway-anchored Safe Village of Rockrimmon shopping center and previously was occupied by FirstBank. According to Schroeder, the buyer will redevelop the property into a new dental office. Following the sizable remodel, which is expected to wrap up in mid-2021, the local dentist will relocate its practice to the site. Schroeder said the buyer was attracted to the property’s size, northwest Colorado Springs location, and visibility from the signalized intersection of Vindicator Drive and South Rockrimmon Boulevard. In addition to the sale of 817 Village Center, Schroeder exclusively brokered the sale of the 6,877-sf retail center at 6750 N. Academy Blvd. in Colorado Springs. Denver-based investor DMC 1 LLC purchased the asset from the original developer in an off-market sale. This was the first time the asset sold since its construction in 1974. According to Schroeder, the buyer plans to complete a full cosmetic remodel of the property to bring rents up to market rate. The remodel will include replacing the roof, fascia, parking lot and building signage. The property was 100% occupied at the time of sale. DENVER – Evolucion Innovations Inc., also known as evo, purchased the 6,205-sf, freestanding retail property at 845 Lincoln St. in Denver from seller Eight Forty Five Lincoln Inc. The property traded for $1.18 million. Todd Snyder and Joey Gargotto of NAI Shames Makovsky were the transaction brokers in the sale. According to Snyder, the property originally was listed as part of a multiseller portfolio. He said the assemblage initially saw interest as a whole, but each property ended up selling to a separate buyer. Sports retailer evo will expand its footprint in the area by bringing a new store to the property, Snyder said. The new location will be in addition to its other nearby location at 860 Broadway. The property, built in 1957, has been well-maintained, Snyder noted. He said the buyer will have to make only minor upgrades to accommodate its use. LAFAYETTE – RMTN Properties purchased Baseline Car Wash, the 2,616-sf property at 810 W. Baseline Road in Lafayette, from seller Tepuy Properties for $1.1 million. Jaime Pletcher of Gibbons-White was the transaction broker in the deal. According to Tepuy Properties representatives, the car wash, which features six bays for self-service car washing and vacuum cleaning, was listed for sale in late 2020 and garnered significant interest, receiving four offers. Tepuy Properties acquired the asset in 2018 as part of its purchase of Baseline Mall, which included four buildings and the car wash. Since then, the seller has made multiple renovations on the property. “One of the things we do is buy properties that have been neglected,” said Ricardo Bottome, asset manager for Tepuy Properties. “We can do the necessary repairs and upgrades. We’ve been doing many upgrades at Baseline, including landscaping, parking lot improvements, new signage and new paint. “The car wash was a dynamic business to operate,” he added. “However, it was a property that needed daily attention and constant repairs. With 11 other properties in our diverse portfolio, we decided it was within our best interests to sell the car wash to someone who could devote undivided attention to the business.” WHEAT RIDGE – Buyers Joe and Vince Ciccirelli purchased the 6,054-sf former church at 7390 W. 38th Ave. in Wheat Ridge from sellers Victoria and Donald Olheiser and Thomas D’aquin for $857,500. Isaiah Mayfield and Brandon Langiewicz of Hoff & Leigh were transaction brokers in the sale. According to Mayfield, the seller purchased the asset in November 2019 with plans to open a restaurant and brewery. However, due to challenges caused by COVID- 19, it decided to sell the property. The property was listed in May, and despite the ongoing pandemic, Mayfield said, the property saw interest from a variety of users, including neighbors looking to expand and a church operator. The property ultimately sold to a pair of brothers who will redevelop it into residential space and a taproom. A development timeline and project costs were undisclosed. DENVER – Song Investment Property purchased the two-building retail property, totaling 5,760 sf at 7001 and 7005 E. Colfax Ave. from seller The Estate of David Burke. The auto repair shop traded for $875,000. Eva Song of Brokers Guild Homes represented the buyer, while Rich Otterstetter of Crosbie Real Estate Group represented the seller. The property is master-leased to Grease Monkey, which subleases it to a local operator, Otterstetter said. Terms of the lease and the sublessee’s identity were undisclosed. According to Otterstetter, the property was listed for sale in October and received strong interest from a variety of investors, ultimately selling to a 1031 exchange buyer. The property’s long-term, “essential” tenant made it highly sought after, he added. In addition to the sale, Eli Boymel and Rich Hobbs, also of Crosbie Real Estate Group, represented national restaurant chain Which Wich in leasing 1,600 sf at Front Range Village, the 56,401-sf shopping center at 2720 Council Tree Ave. in Fort Collins, from landlord RPT Realty. While the tenant’s lease term was undisclosed, the team noted it pays $30 per sf in rent. COMMERCE CITY – Dingo Diner leased 2,898 sf of retail space at 15209 E. 103rd Place in Commerce City from landlord Hite Properties LLC. Michael J. Martin of KW Commercial represented the landlord, while the tenant went unrepresented. According to Martin, the tenant is under a 10-year, triple-net lease at the property and will pay $20 per sf in rent. The lease did not include a tenant finish allowance, he noted. Martin also represented landlord AMAC Holdings in leasing 1,898 sf of retail space to tenant Long Live Tattoo at 864 Santa Fe Drive in Denver. The tenant was unrepresented in the sale. It is under a five-year lease at the property and will pay $24.74 per sf in rent. Its agreement included a $4 per sf tenant improvement plan.