Colorado Real Estate Journal - January 6, 2016
Woodmen Commons recently traded for $35 million in what is believed to be the highest-priced retail sale to close in Colorado Springs in 2015. A private investor, identified by public record as TKG Woodmen Commons LLC, an entity of The Kroenke Group, purchased the 156,010-square-foot center from Rosenbaum-Dean, which developed Woodmen Commons. Situated at 1706-1790 E. Woodmen Road, in the northern part of the city at Woodmen and Academy Boulevard – one of the busiest intersections in Colorado Springs – the center is home to a number of national tenants. The property is anchored by Sam’s Club, Bed Bath & Beyond and Marshalls, and is home to tenants such as Dressbarn, Jared, Kirkland’s and Sketchers, which will open in the next one to two months. Woodmen Commons received multiple offers from institutional as well as private capital investors, noted Ryan Bowlby of The Matlock Group of Marcus & Millichap. “We had a lot of interest from institutional and private capital as, with this tenant lineup in this market, there is not a lot of product like this. It’s location at the north end of Academy, high traffic counts and the income demographics of north and northeast Colorado Springs – put that together and it checks a lot of boxes for buyers,” said Bowlby. “The center offers good, stable cash flow and is solid real estate.” “We continue to see excellent demand for big-box centers that are well located with top anchors,” added Garrette Matlock, vice president of investments and senior director of Marcus & Millichap’s National Retail Group. Matlock and Bowlby represented the seller and procured the buyer. “Although the most sought after multitenant retail product continues to be supermarket-anchored neighborhood centers, the difference in pricing often presents a compelling case for big-box centers for cash flow-oriented buyers seeking a dependable income stream from credit-rated tenants,” continued Matlock. At the time of sale, Woodmen Commons was 99 percent occupied with an approximately 1,800-sf space available. The majority of the center was constructed in 1998 and 1999. Other News A local owner-operator added to its more-than-350-unit portfolio with its acquisition of the Bluffs West apartment community. Chestnut Heights LLC paid $2.88 million for the 55-unit community at 4339 N. Chestnut St. in Colorado Springs. BAC Enterprises LLC sold the community, constructed in 1968 and featuring an equal mix of one- and two-bedroom units with fireplaces. Kevin McKenna and Saul Levy of ARA Newmark represented the seller in the transaction. It was the fourth property sold by ARA Newmark in the west Colorado Springs apartment submarket since July. “Bluffs West presented a rare repositioning opportunity in one of the city’s strongest submarkets,” said Levy. “It is difficult to find an opportunity in a desirable location with this level of upside. Nearby properties were consistently achieving rents more than $100 higher than those at Bluffs West and the previous owner was paying all gas and water utility expenses.” Bluffs West is located 2 miles from the University of Colorado Colorado Springs and the University Village Colorado shopping center, which features the city’s only Trader Joe’s. “The buyer was looking to add to its current portfolio in Colorado Springs and will be making some significant capital improvements, such as frontload, stackable washers and dryers in select floor plans. The new owner should produce significant returns once they increase rents to market level and implement the utility bill backs,” added Levy. Bluffs West was 95 percent occupied at the time of sale. An 18,320-square-foot industrial building in Colorado Springs was picked up by 6260 Investments LLC for $1.37 million. C and R Investments LLC sold the building at 6260 Omaha Blvd. David Bacon of Colorado Springs Commercial, a Cushman & Wakefield Alliance handled the sale. Pikes Peak SEO recently leased 7,525 sf at Pikes Peak Research Park. The search engine company leased the space at 5475 Mark Dabling Blvd. in Colorado Springs from Ecovest Investments LLC. Michael Palmer of Quantum Commercial Group Inc. was the listing agent. Steve Hunsinger of Olive Real Estate Group Inc. represented the tenant.