Colorado Real Estate Journal - October 4, 2017
Armstrong Capital Development found opportunity at a suburban infill site. The Denver-based real estate and investment company purchased a Littleton shopping center, where its planning upgrades and, potentially, expansion. ACD paid $7.5 million for Centennial Square shopping center, a 62,215-square-foot center at 2727 W. Belleview Ave. Centennial Square is shadow anchored by a King Soopers Marketplace and across Belleview from a Home Depot. “We are excited to acquire this infill asset with its advantageous positon in such a vibrant market,” said Jarrett Armstrong, ACD partner. “The success of the surrounding anchors and new residential development underway make Centennial Square an excellent fit for ACD. We anticipate that our improvements to the center will complement the surrounding trade area and ultimately create the inviting shopping center sought by the community.” ACD’s first priority with the property is to refresh the center, built in phases from 1978 to the 1980s. Work will include updating/remodeling the fascia of the multibuilding property, site work, landscaping, site signage and the parking lot. The improvements not only will improve the aesthetics of Centennial Square but also its functionality of the site plan and improving traffic flow through the center, added Kathryn Sorensen, development manager at ACD. “We like looking for diamonds in the rough,” she added. Additionally, new construction and expansion of the center’s underutilized area is a possibility. At the time of acquisition, the center was 82 percent leased with approximately 10,000 sf of available space. Tenants include Dairy Queen, Mattress Firm, Subway, Dollar Tree, CorePower Yoga and Supercuts. A Taco Bell at the center was not included in the sale. Mike DePalma and Sean Kulzer at SullivanHayes Brokerage are handling leasing of Centennial Square. Matthew Henrichs and Brad Lyons of CBRE Capital Markets, National Retail Partners represented the seller, Centennial Milner LLC et al. ACD funded the acquisition through its ACD 2013 Fund LP and ACD 2017 Fund LP investment vehicles. Founded in 2005, Armstrong Capital Development is a private development company that acquires, develops and manages opportunistic real estate investments in the Colorado region with a focus on value-add acquisitions. Other News •The Shoppes on Horizon, a shadow-anchored retail center in Grand Junction, recently traded for $2.4 million. An out-of-state investor purchased the 16,171-square-foot retail property at 683 Horizon Drive. The seller was a private investor represented by Ryan Bowlby and Garrette Matlock of Marcus & Millichap. The property sold as a short sale, which required the listing team to work in conjunction with the lender and court-appointed receiver. “Shoppes on Horizon is shadow-anchored by Safeway and located in the more affluent part of Grand Junction. The property offers the buyer the opportunity to create significant value by leasing the existing vacancies and through more active ownership,” said Bowlby. Currently, the center is 68.3 percent occupied by tenants that include Edward Jones, Cost Cutters, Nick-N-Willy’s Pizza, Country Club Liquors and Taqueria Guadalajara. Additionally, the property is positioned in an affluent submarket in Grand Junction, with an average household income 31 percent higher than the city as a whole. •An Aurora SafeSplash recently sold in a sale-leaseback deal. The 8,600-sf building at 5930 S. Gun Club Road sold for $2.8 million, or $326 per sf. SSA LLC purchased the property from seller Swim Schools of America LLC. “Service-oriented retail uses are becoming more sought-after in the investment community. SafeSplash is the industry’s leader of swim schools and will provide great stability for the new owner. This is a great example of how a sale-leaseback can unlock real estate equity for a company to help to fuel growth,” said Tom Ethington of Pinnacle Real Estate Advisors LLC. Ethington and Rob Edwards of Pinnacle Real Estate represented the seller. Kevin Calame and Matt Lewallen, also of Pinnacle, represented the buyer. “The buyer saw the opportunity to trade out of multifamily while the cap rates are low and trade into a triple-net asset that had less management and higher return,” stated Calame. •Donapudi Holdings LLC purchased a single-tenant retail center in the Southlands area of Aurora for $1.75 million. The 6,200-sf property at 6200 S. Gun Club Road was sold by Zano Saddle Rock Holdings LLC. John V. Propp of John Propp Commercial Group handled the sale. Prior to the sale, Propp counseled the seller to structure a new five-year, below-market lease with the existing tenant, which allowed the buyer to be able to increase rents at the end of the term if the existing tenant moves, he explained. Additionally, the tenant was pleased to have a below-market rental rate and the seller was able to make a quick and reasonable sale, he added. •Northern Colorado-based Ziggi’s Coffee is expanding. The coffee shop and drive-thru brand’s franchise network is growing and CBRE is exclusively representing Ziggi’s Coffee as the company works with franchisees to select locations for its new stores. On top of its eight existing stores in Northern Colorado and the Denver metro, plans are currently underway for another seven locations across the country. The growth nearly doubles the footprint of Ziggi’s Coffee one year after founders Brandon and Camrin Knudsen first announced plans to franchise the brand. “When you combine sustainably sourced ingredients and fast, friendly customer service within the framework of a uniquely efficient business model, it’s no surprise Ziggi’s Coffee has experienced such a high level of franchisee interest,” said Steve Stoecker, associate with CBRE in Fort Collins, who is representing Ziggi’s Coffee in its property acquisitions along with CBRE’s Annah Moore.“These additional locations will bring Ziggi’s Coffee to new areas so more people can experience what makes the brand so special.” Current locations include stores in Henderson, Firestone, Lakewood, Westminster and Longmont. The first franchise location will open in Loveland this fall with two other franchisees under contract in Fort Collins and Greeley and a third franchisee is exploring options in Windsor. Last month, the company awarded a new franchise agreement to open a store in Hudson and is also taking steps to bring Ziggi’s Coffee to other states. Ziggi’s Coffee offers three franchise business models: a coffeehouse model, a coffeehouse with a drive-thru and a double-sided drive-thru. The Knudsens work closely with franchise owners to choose a business model and engage CBRE for expertise in identifying and selecting property sites that will best position the business for success. “The ideal site for a Ziggi’s Coffee is around one-third to three-quarter of an acre located in a community-focused area. Being a strong partner with the local community is one of the brand’s key tenants, so visibility and accessibility to neighbors is key,” said Moore.