Colorado Real Estate Journal - July 15, 2015
A retail center at one of the best locations in Pueblo sold at a price of $407 per square foot. A Northern Colorado-based private investor paid $3 million for the three-tenant retail center at 1425 U.S. Highway 50 West – a center that essentially functions as a net-leased asset. McAlister’s Deli, Papa John’s Pizza and Open MRI of Pueblo occupy the 7,371-sf center, shadow anchored by Lowe’s and Staples, where McAlister’s Deli is the primary tenant. Upon close of the property, the McAlister’s Deli franchisee, the seller, agreed to enter into a new 15-year, triple-net master lease of the property, noted Drew Isaac of Marcus & Millichap. “There were a number of offers on the building. The value and interest in the property is due to its functioning as a n e t - l e a s e d property,” he added. The new owner also will enjoy a 1.5 percent annual rental escalation throughout the primary term and two 10-year renewal options. “The buyer obtained a stable, long-term, net-leased income stream collateralized by a property in one of the best retail locations in Pueblo,” added Howard Stark of Marcus & Millichap, who represented the buyer with Isaac. The seller, who was represented by Barry Higgins and David Lee, also out of the Denver office of Marcus & Millichap, is expanding his McAlister’s Deli footprint in several markets and the transaction allowed him to redeploy capital to achieve that goal. The Pueblo location for the franchisee is one of the best-performing McAlister’s in the state, noted Isaac. The center was constructed in 1998.
The Gazette recently leased 42,500 square feet of industrial space in Colorado Springs. It leased the warehouse property at 3113 N. Stone Ave. from Full Circle V LLC. Aaron Horn and Dave Bacon of Colorado Springs Commercial, a Cushman & Wakefield Alliance represented the tenant. The firm also represented the landlord in a lease renewal in the city. Mike Helwege and Peter Scoville of Colorado Springs Commercial represented Ridgeline Drive TIC in Wesco Distribution’s renewal of 39,194 sf of space at 116k75 Ridgeline Drive.