Colorado Real Estate Journal - August 5, 2015
Phillips Edison, based in Cincinnati, recently paid $15.5 million for the 103,883-square-foot Broadlands Marketplace in Broomfield. The Safeway-anchored center, at West 144th Avenue and Lowell Boulevard, sits on 12.4 acres in the 820-acre, master-planned Broadlands development. The sales price equates to $149.21 per sf. The sellers were the Greenwood Village-based Alberta Development Partners and Walton Street Capital, based in Chicago. The Safeway, with 58,632 rentable sf, occupied 56.4 percent of the center. In addition to Safeway, the No. 2 grocer in the Denver area after King Soopers, the center includes national tenants such as Great Clips, Edward Jones and Subway. There are a total of 21 tenants in the center, which was 96.3 percent leased at the time of the sale. Phillips Edison said it does not think the center needs any significant renovations or improvement. Meanwhile, in another recent retail sale, Boston Financial Investment Co. and Nassau East Real Estate LP recently paid $5.2 million for the 10,140- sf Tower Crossing in Aurora. The sales price for the center at 3501 and 3551 S. Tower Road equates to $512.82 per sf. John Propp, principal of the John Propp Commercial Group in Greenwood Village, handled the sale for the sellers, living trusts. “The new buyer is an old client of mine,” Propp said. He arranged to sell the center to the buyer, which is anchored by a Starbucks, Chase Bank, a Smile Brands/Bright Smile dental office and Go Wireless, but also lined up backup offers, in case the sale did not close. It did. “It’s a perfect fit for the buyer,” Propp said. “It’s relatively new, it’s on a great hard corner (at Tower Road and Hampden Avenue) and the tenants are so good that you could almost describe this as a small, trophy property.” The buyer benefitted because the leases for the Starbucks, which has 1,681 sf, and the dental office, with 4,052 sf, are coming due, he said. “If they waited until the new leases were signed, it would have cost them another $150,000 to $200,000,” Propp said. At the same time, the seller benefits because the new owner covers the cost of resigning the leases, such as his commission, Propp said. Dental offices never leave a center, he said. “They invest so much on equipment and improvements that they will sell to another dental practice,” if the current tenant leaves, he said. “Honestly, I’d rather have a dental office as a tenant than a Starbucks,” Propp said. One of the backup offers for Tower Crossing wanted to separate the 4,800-sf Chase bank building, which is on a ground lease, from the rest of the center. Stand-alone Chase buildings have sold for 4.25 cap rates, he said. Propp will continue to manage Tower Crossing for the new owner. Other News A limited liability company, 221 Wilcox, paid $1.05 million for the 5,184-square-foot retail center at 221 Wilcox St. in Castle Rock. The sales price equates to $202.55 per sf for the center that was built in 1976 and remodeled in 2001. The sellers were Randal and Carrie Mikelson. Matt Call and John Witt of Castle Rock-based NavPoint Real Estate Group handled the transaction. Backstage Coffee & Bistro at Midtown has leased 2,200 sf in the Midtown housing community at West 67th Avenue and Pecos Street in Adams County. Midtown is a 1,300-home community being developed by Brookfield Residential. n Gloria Sanders, doing business as Classics by Gloria, leased 1,200 sf from Fortuna Capital at Applewood Grove at 1901 Youngfield St. in Golden for a catering business. Gene Stone of Antonoff & Co. Brokerage was the listing broker in the transaction. Innova Corp., doing business as Espresso Americano, leased 1,816 sf at Columbine Place at 216 16th in Denver. Jeffrey L. Hirschfeld of Antonoff & Co. Brokerage was the listing broker. Jacob Hawkins of David Hicks Lampert was the cooperating broker in the transaction. Muhammad Shauna leased 1,500 sf at 1010 S. Peoria St. in Aurora for a kosher restaurant. Gene Stone of Antonoff & Co. Brokerage represented GNPS LLC, the landlord, in the transaction. Xing Spa leased 1,198 sf in the Friendly Square Shopping Center at 11651 W. 64th Ave. in Arvada for a massage center. Gene Stone of Antonoff & Co. Brokerage was the listing broker. J Max Co. leased 1,181 sf at Gateway Point Plaza at 3751 Tower Road in Denver for a FedEx Print and Ship shop. Jeffrey L. Hirschfeld of Antonoff & Co. Brokerage was the listing broker, representing the landlord, V&V Inc. n Nuurva Moda LLC and Prestige Beauty Salon, a salon and shoe repair business, leased 889 sf at the Friendly Square Shopping Center at 11651 W. 64th Ave. Gene Stone of Antonoff & Co. Brokerage represented the listing broker in the transaction.