Colorado Real Estate Journal - April 16, 2014

Colorado Studios acquires 5.19 acres in Douglas County

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Garvin Grounds LLC, headed by Philip Garvin, president
of Colorado Studios, acquired a
5.19-acre site for $904,131, or $4
per square foot. The property is
located in Highfield Business
Park, on the west side of Highfield Parkway, approximately
300 feet north of Compark Boulevard.
The seller was Highfield
Business Park LLC (Tom Bradbury, longtime land developer
in Douglas County). Highfield
Business Park contains 100
acres and has been marketed
by Central Development President Jeremy Records.
“The sites are shovel-ready
and have the full backing of
Douglas County’s business-friendly climate,” according to
a listing brochure.
In late December 2013, a new
file plat of Highfield Business
Park 4th Amendment was
carved out and approved by
the Douglas County Board of
Commissioners. The new filing
contains 21.77 acres divided
into three individual lots. R&R
Engineers-Surveyors Inc. of
Denver facilitated the platting
of this site.

NYC’s Tessler acquires
last DU assemblage

Nodef Colorado Inc., doing
business as Tessler Development of New York City, purchased 2420 S. University
Blvd. from the Colorado Seminary for $790,000, or $105.33
per square foot (land value).
Yitzchak Tessler, president of
Nodef Colorado Inc., is hoping
this 10-year-plus project will
finally materialize his dream of
a five-story mixed-use retail/
residential development on his
1.72-acre assemblage.
The rectangular tract has 500
feet of frontage on South University and 150 feet of frontage
on East Wesley Avenue.
A hearing is set for April
28 on a change of zoning to
G-RX-5. The owner purchased
2460 S. University from Colorado Seminary for $710,000, or
$94.67 per sf, in March 2013.
Bob Gollick of Robert J.
Gollick Inc. is representing the
buyer in the rezoning process.
“It has been really busy over
the last year as I have 15 zoning hearings on the docket for
new development projects,”
said Gollick, who has been a
real estate consultant for 28
years. “Their goal is to build a
five-story building with retail/
office on the first floor and
multifamily on the remaining
four stories.”
Nodef Colorado began the
assemblage in 1998 at 2430 S.
University Blvd. Last week,
Nodef Colorado Inc. executed a promissory note in the
amount of $1.05 million, payable to ANB Bank, due March
19, 2015, which encumbered
the entire assemblage.

Investors complete
$1.59m exchange

Chris Wiedenmayer, broker
associate with Marcus & Millichap, represented the buyer in
a 1031 exchange that included
925 W. Eighth Ave. and 801
Santa Fe Drive, for $1.59 million. The buyer was Serev
Properties Ltd., based out of
Cincinnati.
According to research
obtained by Winslow Property Consultants LLC, the buyer’s website is that of Bahl &
Gaynor Investment Counsel.
The deed of trust also reflected
the contact person as Vere W.
Gaynor.
Justin Krieger, senior adviser
at Pinnacle Real Estate Advisors, represented U Corp. LLC,
owner of 925 W. Eighth Ave.,
in the $800,000 transaction.
According to the press release
from Pinnacle, the sales price
represented 97 percent of the
asking price.
This building is a two-tenant,
2,484-square-foot retail building constructed in 1966 with a
land area of 5,981 sf. The property is leased to a convenience
store user and a Laundromat
and has income from a billboard. The cap rate was calculated to be near 6.91 percent
before vacancy, management
and reserves were figured.
Wiedenmayer also represented the buyer on the 801 Santa
Fe transaction. The seller was
Castle Point Properties LLC
of Castle Rock, identified as
Robert and Heidi Forte. This
property sold for $795,000 and
included a 28-year-old, 3,100-
sf restaurant on 13,287 sf of
land. This property is leased
to Isushi Japanese Restaurant.
The financial terms were not
disclosed.
“With the purchase of both
properties, it squared up the
land, which will allow for
maximum development potential,” said Wiedenmayer. “Justin (Krieger of Pinnacle) did a
great job on the 925 W. Eighth
Ave. property.”
The cumulative price paid by
the purchaser reflected $82.78
per sf for the land.
“There have been several
smaller sites sold in the Highlands District, the DU area,
RiNo Arts District, LoDo, the
Golden Triangle and the CBD
that have exceeded what my
buyer paid on a price per
square foot basis,” said Wiedenmayer. “It was a win-win
for all parties and the buyer
found two excellent income-producing properties for their
1031 exchange,” concluded
Wiedenmayer. The two deeds
of trust totaled $1 million, or
62.7 percent loan to value. The
loan was originated by U.S.
Bank.

MMJ America buys
Evans greenhouses

Jacob Salazar, who is listed
as the owner of MMJ America,
acquired the Dardano Greenhouses for $1 million. According to public records, the two
parcels contain 46,522 square
feet of greenhouses (a 35,753-sf
metal greenhouse built in 1966
and a 10,769-sf greenhouse
constructed in 1989).
The total land area is nearly 99,000 sf, and the property
is zoned I-MX-3. The seller
financed the property with
$350,000 down and payments
of $7,216 per month, amortized
over 10 years with a balloon in
April 2018.
The buyer was not available
for comment. MMJ America
has three dispensaries: 1321
Elati St. and 2042 Arapahoe
St. in Denver, and 1909 Broadway St. in Boulder. It is not
known if it has applied for
recreational sales in its other
Denver locations. While many
of the medical and recreational
marijuana retailers buy their
product from growers, particularly those who have acquired
or leased large industrial buildings for growing purposes, the
1205 W. Evans Ave. site most
likely will allow for the buyer
to grow its own “crop.”
According to several of the
brokers who have dealt with
some of the MMJ groups, there
is a high level of sophistication, including huge amount
of dollars spent by tenants and
owners alike for equipment.
According to one owner, “The
tenant has been in the building for two years, spent over
$359,000 for their equipment,
and these guys are definitely
serious.”
While most transactions
reflect inflated values for lease
or purchase, this deal did not
reflect an inordinately high
price, either with regard to
the price per sf for the land
or for the greenhouses. Typical owner financing that has
been reported by WinComps
in the last six months has been
higher than market interest
rates, reflecting interest rates
of 11 percent to 14 percent on
many of the transactions. Dardano Flowerland facilitated an
owner finance on this property
at 6 percent interest.
Dardano’s Flowerland Inc.
has been an icon in the Denver
botanic business for more than
100 years. Mike Garramone
started growing vegetables in
1910 for a government-sponsored project that was a forerunner to the World War ll Victory Gardens. Loretta Dardano’s mother, Arlene, started the
business in 1946 by selling peppers and tomatoes at the family house on West Evans. The
Dardano’s Flowerland opened
at 1205 W. Evans in 1965,
but the 1965 flood destroyed
everything. The Dardano family regrouped in 1966 and has
been in business for more than
50 years.
Phone messages left with
both the seller and the buyer
were not returned.

Maverik c-store to
open in Aurora

Maverik Inc., based out of
Salt Lake City, Utah, closed
on its second Denver metro
site last week, according to the
Arapahoe County Clerk and
Recorder’s Office. The property consists of two sites totaling 1.43 acres on the southeast
corner of Centretech Parkway
and East Sixth Avenue.
The buyer, who went under
contract with the sellers in
early 2013, submitted plans to
the city of Aurora in March
2013. “We looked at their plans
in March and the building and
site plans were approved in
October,” said Kim Kreimeyer, city planner. Plans were
approved by the planning
commission for a 4,790-squarefoot, 24-hour convenience store
with a 20-fueling-pump canopy station.
Dan A. Murray, director of
real estate for the company,
oversaw the entire process with
the city of Aurora, including
the site negotiation. The replatting of the property was initiated by Peak Civil Consultants
in June 2013 and approved July
30.
The two sites sold for a sum
of $626,460, with the first deed
priced at $400,000. Provecho
LP was the seller. The second
deed was in the amount of
$226,460, with Karan Hoss
Trust as the seller. The total
price equated to $10.04 per sf.
The gasoline pumps are located on the northerly end of the
site with the building located
directly south.
In April 2013, Maverik closed
on a 3.31-acre site on the
northwest corner of Gartrell
Road and Arapahoe Road for
$1.15 million, or $8 per sf. It
purchased the property from
Saddle Rock East LLC (Harvey Alpert). Don Lilyquist of
Maverik Inc. has been working
on the project since October
2013, obtaining approvals from
the city of Aurora Planning
Commission.
According to preliminary
plans, Maverik will build its
4,600-sf convenience store with
10 fueling stations, plus 6,000 sf
of speculative retail space.
In 2012, Armstrong Capital
Group, based in Centennial and
headed by Greg Armstrong,
facilitated a build-to-suit for
Maverik Country Stores in the
Meadows Subdivision of Castle Rock. Maverik is located
on 1.68 acres at 3991 Limelight
Ave., at the south corner of the
Meadows Parkway and Limelight Drive intersection.
According to Chain Store
Guide, a retail chain store lead
source publication based out of
Tampa, Fla., (chainstoreguide.
com), Maverik has constructed
and developed 256 companyowned stores in the Western
United States, including Utah,
Colorado, Wyoming, Idaho,
Nevada, Montana, Oregon,
Washington, Nebraska and
Arizona.

California buyers land
Littleton apartments

Scott Fetter of the Calame/
Lewallen team at Pinnacle Real
Estate Advisors negotiated
the sale of two Littleton apartment buildings. IL/JR Golden
Properties conveyed a six-unit,
two-story apartment building
located at 62 W. Ida Ave. to the
Yu Family Trust for $460,000.
“The property was listed for
$459,000,” said Fetter. “It sold
for $460,000 as the market is
very strong for the smaller
apartments.”
The building contained 4,672
square feet and sold for $76,666
per door.
The six-unit building at
5561 S. Delaware St. sold for
$420,000, or $70,000 per unit.
This building, like the Ida
property, was constructed in
the early 1960s and had similar
architectural features.
“Both properties will be renovated and held for long-term
investment,” said Fetter. The
Cupertino, Calif., buyer who
purchased 62 W. Ida executed
a $342,750, 10-year note payable to Sooper Credit Union.
The buyer for 5561 S. Delaware
St., based in Santa Clara, Calif.,
executed a $312,250, 10-year
note payable to Warren Federal Credit Union. Both loans
were negotiated and handled
by Centennial Lending LLC of
Longmont and have a loan to
value ratio of 74 percent.

WinComps

Denver County

Property Location: NWC Clermont St. & E. 8th Ave., Denver
Property Description: Parking structure to be removed,
vacant land
Land Size: 6.18 acres (as per
survey)
Sales Price: $14.85m, or $55.14
per sf
Closing Date: 3/25
Grantor: LPL Denver Colorado
Dev LLC
Grantee: VRS/Broadstone 9th
and Colorado c/o Alliance
Residential
Financing: $46.34m construction loan payable to Wells
Fargo, NA
Comments: Construction
loan equated to $142,766/unit.
Buyer is doing site work and
325 apartments are planned.
The managing director is Patrick W. Dukes with Alliance
Residential, based in Phoenix.
–––––––––––––––––
Property Location: 1205 W.
Evans Ave., Denver
Property Description: Greenhouses, 35,753 sf, YOC 1966, &
10,769 sf, YOC 1989
Land Size: 2.27 acres
Sales Price: $1m, or $21.48 per
sf
Closing Date: 3/25
Grantor: Dardano’s Flowerland Inc. (Loretta E. Dardano,
Pres.), 303-934-5646
Grantee: MMJ America Holding Corp., (Jacob Salazar,
Pres.), 720-242-9308
Financing: Seller carried
$650,000 @ 6% amortized over
10 years; balloon 4/1/18
Comments: Property is located
at NWC W. Evans & S. Lipan
St., zoned I-MX-3.
–––––––––––––––––
Property Location: 820-890
Dexter St., 805-825 Dahlia St.,
Denver
Property Description: 141-unit
(5 bldgs.) w/103,696 sf, YOC
1957-67
Land Size: 3 acres
Sales Price: $17.3m, or
$122,695/door/$166.83 per sf
Closing Date: 3/14
Grantor: Cardinal Group
Moana LLC, (James Eric Frank
& Jason Luker, Mgrs.)
Grantee: Hilltop Residential
c/o RedPeak Investment Co.
(Michael A. Zoellner)
Financing: $12.98m (4 notes),
due 30 years, payable to JPMorgan Chase
Comments: Buildings are
totally renovated and were
sold by Kevin Calame & Matt
Lewallen of Pinnacle REA.
–––––––––––––––––
Property Location: 1920 17th
St., Denver
Property Description: 219-unit
high-rise apartment w/176,054
sf, YOC 2013
Land Size: 31,109 sf
Sales Price: $70m, or $319,635
per unit/$397.60 per sf
Closing Date: 2/24
Grantor: CPV Apartments
c/o Principal Real Estate
Investors & Zocalo Community Development
Grantee: Cadence Union Station c/o Invesco Real Estate
Comments: The Cadence at
Union Square apartments
range from 553 sf to 1,081 sf
with rents from $2.40 to $2.43
per sf. The property and is 20
percent leased. The two rental
spaces for the ground floor,
6,734-sf retail space are quoted
at $40 per sf triple net. Zocalo
Community Development, in
a joint venture with Principal
Real Estate, acquired the site
in Dec. 2011 for $220 per sf
from JP Wewatta LLC, Jay
Perlmutter, Mgr. Listing brokers were Pam Koster & David
Martin of Moran & Co. Price
was based on a presale negotiated price in March 2013.
–––––––––––––––––
Property Location: 801 Santa
Fe, Denver
Property Description: 3,100-sf
restaurant, YOC 1986
Land Size: 13,287 sf
Sales Price: $795,000, or
$256.45 per sf
Closing Date: 3/17
Grantor: Castle Pointe Properties LLC (Robert & Heidi
Forte, Mgrs.)
Grantee: Serev Properties c/o
Bahl & Gaynor Investment
Counsel
Financing: $500,000 note payable to U.S. Bank
Comments: Sold along with
925 W. 8th Ave. for a total of
$1.59m; the buyer facilitated a
1031 exchange. Chris Wiedenmayer of Marcus & Millichap
represented the buyer.
–––––––––––––––––
Property Location: 925 W. 8th
Ave., Denver
Property Description: 2,484-sf
retail building, YOC 1966
Land Size: 5,981 sf
Sales Price: $800,000, or
$322.06 per sf
Closing Date: 3/17
Grantor: U Corp, (Adnan
Kayali, Mgr.)
Grantee: Serev Properties c/o
Bahl & Gaynor Investment
Counsel
Financing: $500,000 note payable to U.S. Bank
Comments: Sold along with
801 Santa Fe Drive for a total
of $1.595m; the buyer facilitated a 1031 exchange. Justin Krieger of Pinnacle REA
represented the seller while
Chris Wiedenmayer of Marcus
& Millichap represented the
buyer.
–––––––––––––––––
Property Location: 1336 Glenarm Place, Denver
Property Description: 6,250-
sf, 2-sty. office building, YOC
1928, brick const.
Land Size: 6,250 sf
Sales Price: $1.23m, or $196
per sf
Closing Date: 3/21
Grantor: Colorado Press
Assoc. Inc. (Samantha A. Johnson, Dir.)
Grantee: Ringsby Terminal
Inc., (Alex Ringsby, Pres.)
Comments: Property was
originally listed for $1.35m
by KW Commercial RE, Barry
Bounds, 720-221-1820. Site
has 7 parking spaces. Alex
Ringsby represented himself,
303-892-0114.
–––––––––––––––––
Property Location: 257 Fillmore St., Denver
Property Description: 2,276-sf
single-tenant retail building,
YOC 1976
Land Size: 3,500 sf
Sales Price: $1.04m, or $455.48
per sf
Closing Date: 3/25
Grantor: W.S. West Ltd. (Dudley T. Smith Jr., Ptnr.), 303-321-
4139
Grantee: Kevin Beck, Denver
Comments: Unknown if tenant (West South West) is still in
building.
–––––––––––––––––
Property Location: 1531 Leyden St., Denver
Property Description: 12-unit,
2-sty. apt. w/9,345 sf, YOC
1947, brick
Land Size: 13,000 sf
Sales Price: $1.02m, or
$85,000/door
Closing Date: 3/21
Grantor: Murray-Mustoffa
Family LLP (Patricia A. Murray & Jill Ann Mustoffa)
Grantee: Colonia Optimum on
Leyden LLC
Comments: One-bedroom
units are 700 sf and rent for
$695,750; two-bedroom units
are 875 sf and rent for $875-
$925 per month. Monthly rent
includes water, sewer and
trash. Managed by Shockcor,
303-861-4667, Ext. 7
–––––––––––––––––
Property Location: 3354 Larimer St., Denver
Property Description: 2,376-
sf, single-tenant metal warehouse, YOC 1972
Land Size: 11,824 sf
Sales Price: $710,000, or $60.05
per sf (land value)
Closing Date: 3/25
Grantor: 3354 Larimer St. LLC
(Joseph S. Torrez III)
Grantee: Site 7 Solutions LLC
(Jim Taylor, Mgr.)
Comments: The building has
new central air and plumbing
and is zoned I-MX-3. The listing broker was Sofia Williamson of Dunton Commercial,
303-758-3131. Marc Lippitt of
Unique Properties LLC-TCN
Worldwide represented the
buyer, Jim Taylor. The property last sold in December 2001
for $310,000.
–––––––––––––––––
Property Location: NWC E.
49th Place & Verbena St., Denver
Property Description: Vacant
residential lots
Land Size: 8 lots
Sales Price: $592,000, or
$74,000 per lot
Closing Date: 3/25
Grantor: FC Stapleton II LLC,
(John Lehigh, Mgr.)
Grantee: NT North SF LLC
c/o New Town Builders, 303-
707-4400
Property Location: NEC E.
50th Ave. & Yosemite St., Denver
Property Description: Vacant
residential lots
Land Size: 9 lots
Sales Price: $1.16m, or
$128,889 per lot
Closing Date: 1/7 & 3/20
Grantor: FC Stapleton II LLC
(John Lehigh, Mgr.)
Grantee: Weekley Homes LLC
(David Weekley, Pres.)
Comments: Two deeds combined with sites that are not
contiguous. One deed closed
for $560,000, or $140,000 per
lot; second deed closed in
March at $600,000, or $120,000
per lot.
–––––––––––––––––
Property Location: 4850 Jackson St., Denver
Property Description: 6,809-
sf office building, YOC 1967,
masonry
Land Size: 16,431 sf
Sales Price: $550,000, or $80.78
per sf
Closing Date: 3/21
Grantor: Insure Fire and Water
(Mike Coon, Pres.), 303-778-
6000
Grantee: 4850 Jackson Street
LLC (19 Fulton St., Ste. 801,
New York, NY 10038)
Comments: Asking price was
$599,000 in May 2013; buyer
not identified

Douglas County

Property Location: 8101 Midway Drive, Littleton
Property Description: 25,022-sf
industrial building, YOC 1989,
concrete panel
Land Size: 2.89 acres
Sales Price: $2.01m, or $80.29
per sf
Closing Date: 3/27
Grantor: UOP LLC (division of
Honeywell, J. Kenneth Joung,
VP)
Grantee: Pavco Group, LLC
c/o South Valley Dry Wall,
Travis Vap, VP)
Comments: Handled by Jones
Lang LaSalle and buyer will
move into the building.
–––––––––––––––––
Property Location: 4250 Trail
Boss Trail, Castle Rock
Property Description: 11,75-sf
day care center, YOC 2005
Land Size: 2.89 acres
Sales Price: $2.2m, or $187.23
per sf
Closing Date: 3/20
Grantor: Munchkin Care LLC
by AM Trust, Philip E. Johnson, Tr.
Grantee: Carlyle Holdings
LLC, (Paul M. Rivera, Mgr.)
Financing: Buyer executed
$1.65m, due 10 yrs., payable to
Bellco Credit Union
Comments: Secretary of State
shows seller contact as Jonathan P. Johnson of CRL Inc.,
303-688-8800. Tenant is Merryhill School. 75% loan to value
loan.
–––––––––––––––––
Property Location: 9139 Commerce Cir., Highlands Ranch
Property Description: 3,266-sf
fast-food restaurant, YOC 2003
Land Size: 1.21 acres
Sales Price: $850,000, or $16.18
per sf (land) $260.26 per sf
(bldg.)
Closing Date: 3/10
Grantor: Wendy’s of Denver,
LLC
Grantee: Highland Ranch
Shoppes LLC c/o MQ Dev.
Ptnrs. (Rodney K. Jones)
Financing: Buyer executed
$814,989 payable to FirstBank
Comments: Located on the
NEC of Santa Fe (Hwy. 85)
and Town Center Drive. Listed
by Scott Crosbie of Crosbie
Real Estate Group, 720-287-
6869.
–––––––––––––––––
Property Location: 1) 10490
Progress Way & 2) 10510
Dransfeldt Road, Parker
Property Description: 65,273-
sf retail bldgs. (5 bldgs.) YOC
2004-2006, masonry
Land Size: 7.12 acres (5.1 acres
& 2.02 acres)
Sales Price: $3.1m, or $47.49
per sf (bldg.)
Closing Date: 3/13
Grantor: BSCM 2007-PWR
16 Villages at Parker II LLC
(James Harbur) Irving, TX
Grantee: Village at Parker
LLLP (James Hanegan), 303-
572-0055
Comments: 1) 10,125 sf, YOC
2006; 14,175 sf YOC 2005;
14,125 sf, YOC 2004; 12,150 sf,
YOC 2005; total of 50,575-sf
strip center (2) 14,698-sf strip
center, YOC 2006. Sale was an
REO transaction negotiated
by CBRE retail group. Property had 18,231 sf available at
time of sale (27.9% vacant).
The property was conveyed
via Public Trustee’s Confirmation Deed May 31, 2012,
to C-III Asset Management,
5221 N. O’Connor Blvd., Ste.
600, Irving, TX. Planet Cheer
& Colorado School of Dance
are the anchor tenants at
10490 Progress with 9,985 sf &
10,125 sf, respectively, while
Cozy Pine Montessori is the
anchor tenant located at 10510
Dransfeldt with 7,380 sf. The
65,273-sf, five-building retail
center was developed in 2005
by Charles Wahlen & Tom
Martino.

Arapahoe

Property Location: 2879 S.
Shoshone St., Englewood
Property Description: 10,350-sf
warehouse, YOC 1974, brick
const.
Land Size: 13,069 sf
Sales Price: $730,000, or $70.53
per sf
Closing Date: 3/26
Grantor: WT Shoshone LLC
(Wai L. Tang, Mbr.)
Grantee: 2879 South Shoshone
St. LLC (Jl Hoon Chung, Mgr.)
Comments: Listed for
$785,000, or $4.95 per sf NNN;
mezzanine office space on 2nd
floor not included.
–––––––––––––––––
Property Location: NEC E. 6th
Ave. & Centretech Pkwy.
Property Description: Vacant
land
Land Size: 1.43 acres
Sales Price: $626,460, or $10.04
per sf
Closing Date: 2/24
Grantor: Povencho LP (Ron
Eichorst, Ptnr.) & Karan Hoss
Trust
Grantee: Maverik Inc. (Don
Lilyquist), 801-936-5557
Comments: Two deeds combined with different sellers
and one buyer. Buyer plans
to open Maverik convenience
store.
–––––––––––––––––
Property Location: 2498 S.
Tejon St., Englewood
Property Description: 9,779-sf
warehouse
Land Size: 15,813 sf
Sales Price: $665,000, or $68
per sf
Closing Date: 2/24
Grantor: Palmer Investments
No. 2 (Robert Palmer, Ptnr.)
Grantee: Cenergy Therapeutics Inc. (James T. Raeder,
Mgr.)
Financing: Buyer executed
$615,000 note at 5.3%, $50,000
due 8/1/14, 300 monthly
payments of $3,402.44, and
balloon on 6/1/24, payable to
grantor.
Comments: Listed and sold
by Steve Serenyi of Colliers
International, with office finish, divided into a 4-tenant
building, listed less than 6
months.