Colorado Real Estate Journal -

Kentro plants flag on Tennyson

by John Rebchook


Kentro means “center” in Greek.

“My family is from Greece and like in ancient Greece, where the marketplace is the center of all of the activity, (that) is what we are seeking in our retail developments,” said Jimmy Balafas, who heads the Denver-based Kentro Group with his brother, George.

Jimmy Balafas said their latest acquisition is a perfect fit for Kentro’s 200,000-squarefoot portfolio of mostly retail centers.

The Kentro Group recently paid $1.15 million for the former Group Ward Carter Dance Studio on a 19,169-sf site at 4275 Tennyson St. in Denver’s Berkley neighborhood.

The Kentro Group is planning to convert the existing building, with 7,348 sf that was constructed in 1941, into a retail center.

The space is already oversubscribed.

“We have received over seven letters of intent from restaurants and we are trying to pick from the best of the bunch that will fit the Berkley neighborhood,” Balafas said.

He noted they received all of the interest from prospective tenants without even hiring a broker to list it.

“We had this overwhelming response just from the sign,” he said.

The building is zoned U-MX3, which would allow them to build a three-story structure on the site.

But they don’t plan to demolish it.

“The existing building is super cool, with this barrel roof,” he said. “We plan to save and re-use it. It has very high ceilings, which we think makes it perfect for a retail use.” Previously, they had done a redevelopment in Lower Highland at 2656 W. 32nd Ave., which familiarized them with the area.

They sold that project in 2010, when they couldn’t get a liquor license because of the building’s proximity to North High School.

“We love the north Denver trade area,” Balafas said.

“In addition to Berkley and LoHi, we also have looked at Sunnyside,” he said.

They specifically like Tennyson Street, which serves as the north-south commercial spine of Berkley, a neighborhood where a number of old, small houses are being razed to make way for modern townhomes and duplexes, many of which are selling for north of $500,000.

“We really like the Tennyson vibrancy and feel,” he said “We still feel it has a lot more potential; it has so much character and investment dollars being spent on it that it is really re-inventing itself,” he said.

“And this building has a lot of parking with 21 spaces, which is pretty unique,” he added.

The design of the building is being handled by G3 Architecture and Erik Drayson, he said.

The center isn’t the only new retail project moving forward along Tennyson.

The Colorado Real Estate Journal recently reported that Sagebrush Cos. plans a mixeduse development at West 34th Avenue on Tennyson Street that will include ground-floor retail.

He doesn’t consider that competition. Indeed, he welcomes it.

“We think it is great,” Balafas said. “Retailers love to be around other retailers. It creates a critical mass and gives people more reason to visit the area.” There also are a number of apartment buildings either under way or on the drawing board in the immediate area.

“All of that development is just going to bring more life to an already vibrant, walkable neighborhood,” he said.

Their development also is a few blocks north of Axios, a Greek restaurant.

“I’ve eaten there many times,” he said. “It’s an excellent restaurant.”

Other News

A limited liability company, 1775 Federal Holdings, paid $800,000 for a 2,973-square-foot retail building at 1775 Federal Blvd., near Sports Authority Field at Mile High. Justin Krieger and Joe Hornstein, senior advisers at Pinnacle Real Estate Advisors LLC, represented the seller, CTW LLC. The buyer did not have broker representation.

The property, on a 18,090-sf lot, is leased to one of the largest Pizza Hut franchisees in the country.

The sale closed at a 5.5 percent cap rate, which was, according to CoStar, the third lowest cap rate for a triple-net-leased property in the Denver area in 2013.

“This sale is indicative of the strong demand for infill Denver retail properties. The buyer was particularly attracted to the deal because of the flexible C-MX-5 zoning and the future development upside,” Krieger said.

“As Denver’s population increases, neighborhoods continue to change,” Hornstein said.

“The buyer believes that this neighborhood could be the next area to pop since there isn’t much high-density land left to develop in Highland and Jefferson Park,” said Hornstein.

Josh Newell, senior adviser at Pinnacle Real Estate Advisors LLC, represented the local buyer who paid $3.8 million for the 22,528-sf Shops at Westwood at 16255 W. 64th Ave. in Arvada. The center was constructed in 2001.

Dickey’s BBQ leased 1,700 sf of retail space at West 98th Avenue and Washington Street in the HighPoint development in Thornton. Armstrong Development is the owner.

John Livaditis of AXIO Commercial Real Estate was the listing broker. Grant Maves of SullivanHayes Brokerage was the cooperating broker.

Neo Mile High leased 1,480 sf at 3855 Wadsworth Blvd. in Wheat Ridge. The transaction was handled by Gene Stone of Antonoff & Co. Brokerage, and Cassidy Turley. John Allen, doing business as Colorado E-Smokes, leased 884 sf at the Brentcross Shopping Center at 7737 W.

92nd Ave. in Westminster. Gene Stone and Jeffrey Hirschfeld of Antonoff & Co. Brokerage handled the transaction.