Colorado Real Estate Journal - April 6, 2016
A California buyer made its first Colorado acquisition with its purchase of a net-leased investment property in Colorado Springs – one of two retail properties recently sold in the city in deals handled by Marcus & Millichap. The buyer, in a 1031 exchange, paid $3.36 million, or $482 per square foot, for the 6,983-sf Mimi’s Café restaurant. “There were multiple offers on the property,” said Drew Isaac of Marcus & M i l l i c h a p , noting that there are five years remaining on the original 20-year absolute triple net lease. “But I think the quality of the underlying real estate is what drove the value, the interest.” Located at 7133 N. Academy Blvd., at the intersection of Academy Boulevard and East Woodmen Road, the property benefits from excellent visibility provided by Academy Boulevard and is surrounded by national retailers such as King Soopers, La-Z-Boy Furniture, The Home Depot, Marshalls, Sams Club, Whole Foods and REI, he added. Isaac and Cory Gross of Marcus & Millichap listed the restaurant, which was built in 2000 for Mimi’s Café. A Colorado-based investor was the seller. Isaac also listed the Gateway Center, an unanchored retail strip center. Originally developed in 1998 as a Hollywood Video, the property was renovated in 2011 into Gateway Center, a multiuse center at 1975 S. Murray Blvd., near the intersection of South Academy Boulevard and South Chelton Road. A California-based real estate fund that is expanding its holdings in Colorado paid $2.4 million for the 6,656-sf center. It is 100 percent occupied by three tenants all under triple-net leases. Sprint extended its lease through 2024, Tan Your Hide extended its lease through 2022 and Signature Nails, which expanded its space by an additional 1,280 sf, signed a lease that expires in 2021. An investor, who used to be active in the Colorado Springs market but moved out of state, sold the property, which shares a parking lot with Walgreens. “There were a number of local and out-of-market buyers interested in Gateway Center,” he added.