Colorado Real Estate Journal - September 16, 2015
A 44,291-square-foot multitenant automotive complex in Denver traded to a local group for a price that exceeded the seller’s expectations. Parker Car Care Partners LLC, which is affiliated with the ownership of Denver-based Western Centers Inc., paid $4.95 million for Parker Road Car Care Center at the northeast corner of South Parker Road and South Valentia Street. The price equates to $111.76 per sf. CBRE First Vice President Paul Kluck said the seller, S/G Associates Inc., had owned the property since the 1980s. “He’d been operating it for quite a while. He initially anticipated a $3½ million sale, but we were able to lease it up at rents that supported the sales price of $4.95 million, so he was very happy when this deal closed,” said Kluck. “We think it’s a great infill piece,” said Western Centers Executive Vice President Corey Wagner. The company expects to be able to lease up the center’s single vacancy and also sees upside in adjusting some of the rents to market rates, he said. Wagner said the property has a good tenant mix that Western Centers hopes to maintain, and the company will make improvements to the property as needed. Some of the tenants have been in the center since it was developed in 1987. Kluck, who handled the sale with CBRE’s Matt Henrichs, said within a week of being listed, the property received several offers, and it was under contract within two weeks. The five buildings at 1310, 1330, 1350, 1370 and 1390 S. Parker Road comprise a rare property type in Denver, said Kluck, who noted it is very difficult for certain automotive users – body shops, for instance – to find locations. “It’s really hard to find zoned automotive space or space where a municipality will allow automotive uses anywhere in the metro area,” he said. Kluck said one tenant looked at the Parker Road center six months before it needed space. “They searched the entire market and came back six months later and said, ‘We can’t find anything,’” he said. Parker Road Car Center houses various automotive uses, including businesses that specialize in auto body work, repair, gas and brakes, for instance. A convenience store is part of the mix.