Colorado Real Estate Journal - March 4, 2015
A Los Angeles-based investment group recently purchased a shopping center in the highly sought-after Golden market. Kallis Management Co. paid $5.25 million for the 13,865-square-foot Interplaza Shopping Center at 16950 W. Colfax Ave. The sales price equates to $378.65 per sf. Tenants in the center, constructed in 2008, include the Colorado Department of Motor Vehicles, Subway and Lil' Ricci's. It was 90 percent leased at the time of sale. It is shadow-anchored by Kohl’s, Home Depot, Petco, Golfsmith and two hotels, noted Jeff Hallberg of Ascent Property Advisors, who represented the seller in this transaction. “It’s also not very far from Stevinson Toyota and Colorado Mills,” Hallberg said. He said the seller was not motivated to sell. “We had it on the market for a little while,” Hallberg said. “Definitely, we had a lot of interest in it,” he said. “But my client was not a motivated seller. The price had to be right for them to sell,” Hallberg said. He said he thinks Kallis owns at least one other shopping center in the metro area. “I think what they liked about it is its location and it is an anchored center,” Hallberg said. “It has strong traffic and good population demographics,” he said. “It is on a good west-side commercial corridor and rents are high.” The average daily traffic count in the area is 173,900 and there is more than 1 million sf of office, industrial and retail space within a two-mile radius. He does not think it sold for a record price per sf. “I think there have been some small, multitenant buildings closer to the Stevinson Toyota dealership that have sold for more per sf,” Hallberg said. There is a lot of interest from investors for these small, multitenant neighborhood centers, especially in a strong market such as Golden, he said. However, they are not the most sought-after retail product type. At the top of the food chain for retail investors are triple-net developments anchored by single, national tenants, he said. Investors like those because of assured income from strong, national tenants and little downside risk. Also popular among a different type of investors are valueadd opportunities, he said. Interplaza is not a value-add deal, as it needs no upgrades, he said. Kallis was in a 1031 exchange for the property, he said. Mark Hoekstra from the Heritage Group in San Diego represented Kallis in the transaction. If Kallis wishes to expand its footprint on the site, there is an adjacent property to it that is not owned by the seller of Interplaza, Hallberg said.