Colorado Real Estate Journal - March 4, 2015
A Denver-based buyer acquired a sought-after, mixeduse asset in Colorado Springs for $7.45 million. Beemer Building & Brew LLC paid $123.86 per square foot for Cottonwood Square, a 60,147-sf retail and office property at 2809- 2873 Dublin Blvd. and 6455 N. Union Blvd., one mile from Interstate 25 in the northeast part of the city. “It’s a nice asset in good condition,” Matt Ritter of Pinnacle Real Estate Group said of the property, which represents the buyer’s first acquisition in the Colorado Springs market. Ritter, along with Pinnacle Real Estate’s Peter Sengelmann, represented Beemer Building & Brew, which purchased Cottonwood Square as part of a 1031 exchange. “There was a lot of interest in Cottonwood Square,” added Matt Call of NavPoint Real Estate Group. The property was under contract within four days of going on the market, which speaks to the demand in acquiring neighborhood retail properties, commented Call. Adding to the asset’s attractiveness, Cottonwood Square is situated in a submarket with little other retail competition in close proximity and Cottonwood Square is situated on two separate legal parcels, allowing for an exit strategy that permits the office and retail portions of the property to be split up, he added. Call and NavPoint Real Estate’s John Witt represented the seller, Cottonwood Square LLC. Built in 1984, Cottonwood Square comprises a two-story 21,461-sf office building and 38,686-sf, single-story retail property. At the time of sale, Cottonwood Square was 86 percent leased to a variety of local and regional tenants, including Farmers Insurance, Dublin Medical Clinic, Joint Effort Physical Therapy, Kwik-Way Store and State Farm.The buyer plans to lease and operate Cottonwood Square on his own behalf. FirstBank provided financing for the acquisition.