Colorado Real Estate Journal - September 16, 2015
Pine Tree Commercial Realty LLC recently paid $54.9 million for the Arvada Marketplace-Connection, beating out numerous other investors that wanted the shopping center with multiple big-box tenants. “We had multiple offers on it,” said Brad Lyons, who marketed and sold the 367,510-square-foot center at West 52nd Avenue and Wadsworth Boulevard with fellow CBRE brokers Ron Urgitus, Matthew Henrichs, Tim Richey and Mike Winn. They represented Retail Properties of America Inc., the seller. “A variety of capital wanted it, including some private equity firms and private REITs,” Lyons said. “There was good, across-theboard interest in it,” he added. The size, tenant mix and location made it an attractive asset, he said. “It is a super regional center at two major intersections, Wadsworth and Interstate 70, and it also is close to I-76,” Lyons said. The center, about 94 percent leased when it was purchased, is anchored by a 142,491-sf Sam’s Club, which takes up 39 percent of the gross leasable area. Other major tenants include: • A 54,903-sf Sports Authority, which accounts for 13 percent of the GLA; • A 17,363-sf You Fit, accounting for 5 percent of the GLA; • A 12,000 sf Dollar Tree, 3 percent of the GLA; and • A 10,000-f Old Country Buffett. The center also is shadow-anchored by nearby big-box retailers including Costco, Home Depot and Lowe’s. “This was basically a core-plus type of asset, with some value-enhancement possible,” Lyons said about the center, which has 35 tenants. The estimated population within a 3-mile radius is 121,439 and the median household income in the same area is $51,226. The average household income within a 3-mile radius is $67,447. “We believe Arvada Marketplace Connection’s outstanding visibility, strong regional and national tenant mix and ideal demographics make it one of the dominant retail properties in Denver’s western suburbs,” said Todd Zinsmaster, executive vice president of acquisitions and development for Pine Tree, based in Northbrook, Illinois. “It not only represents a significant achievement – being our 75th property – but also serves to strengthen our portfolio as we continue our growth strategy to acquire high-quality necessity-based shopping centers across the country with high barriers to entry,” he said. The center was constructed in 1987. It is less than mile from Olde Town Arvada and a new light-rail station that will open next year. “Olde Town Arvada – a registered National Historic Place – and its proximity to Arvada Marketplace-Connection presents a unique opportunity to the success of the shopping center as thousands of tourists visit Arvada’s vibrant shopping district and microbreweries each year,” Zinsmaster said. “We believe this acquisition is a commitment to the community of Arvada, including Olde Town, and look forward to improving upon our shared successes going forward,” he said. Financing was provided by Bank of America.