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FEBRUARY 19-MARCH 4, 2014

by Jill Jamieson-Nichols

A 906,845-square-foot port-

folio of Denver industrial

properties has changed hands

in a $36.9 million transaction,

according to public records.

Boston-based TA Associ-

ates Realty, one of the coun-

try’s largest real estate advis-

ers, bought the portfolio, on

behalf of investors in The

Realty Associates Fund X LP,

from TRM-Montbello Corp.

The seller was a pension

fund managed by Invesco

Real Estate in Dallas. The

price per sf was $40.69.

Large by Denver stan-

dards, the portfolio consists

of 18 buildings ranging from

7,240 to 98,784 sf in Montbel-

lo Industrial Park. The build-

ings are 90 percent leased to

34 tenants.

Located along Interstate 70

between Havana and Peoria

streets, Montbello Industri-

al Park is part of Denver’s

dominant industrial submar-

ket.

Colliers International bro-

kers T.J. Smith, Brad Calbert

and Tom Stahl handled the

sale. Smith, citing a confi-

dentiality agreement, said

he couldn’t discuss specifics

of the transaction. But at a

recent industrial conference

in Englewood, he said the

portfolio drew 16 offers from

buyers driven by the portfo-

lio’s discount to replacement

cost.

The buildings were built

predominantly in the 1970s

and 1980s.

“It shows the depth of the

buyer pool for industrial in

Denver,” said Smith. Net

rents were $3 to $4 per sf

triple net, he said.

The portfolio was devel-

oped by Chicago-based Ben-

nett & Kahnweiler, accord-

ing to Jim Bolt, an industrial

property expert at CBRE in

Denver. “It was well occu-

pied with good upside in

rental rates and potential

of spinning off and selling

buildings to users,” Bolt

said, noting there is strong

demand from users for build-

ings to acquire. He was not

involved in the transaction.

The properties included:

• 5075-5081 Kingston St.,

61,111 sf;

• 4909 Kingston St., 42,310

sf;

• 4901-4907 Nome St.,

54,920 sf;

• 4705 Nome St., 41,200 sf;

• 4825 Nome St., 50,832 sf;

• 4905 Lima St., 34,623 sf;

• 11909 E. 51st Ave., 39,382

sf;

• 11925-11945 E. 49th Ave.,

51,216 sf;

• 4900 Lima St., 98,784 sf;

• 4850 Lima St., 45,458 sf;

• 11809-11839 E. 51st Ave.,

7,240 sf;

• 5035 Oakland St., 18,552

sf;

• 5095 Paris St., 21,407 sf;

• 4959 Kingston St., 49,164

sf;

• 4985 Lima St., 49,164 sf;

• 4700 Havana St., 35,657

sf;

• 850-4870 Nome St.,

62,482 sf; and

• 4900 Moline St., 63,569

sf.

s

Adviser buys 906,845-sf industrial portfolio

CoStar Group

The building at 4700 Havana St. was among 18 properties that TA Associates Realty acquired.

by John Rebchook

The VillaMonaco shopping

center was one of the many

suburbanlike neighborhood

strip centers that sprung up

in Denver in the 1970s, when

the city was growing fast

and land was cheap.

For years, the center, with

122,138-square-feet of gross

leasable area at the south-

west corner of South Mona-

co Parkway and East Evans

Avenue, was anchored by a

King Soopers. King Soopers

vacated the space in 2010

and last year was replaced

by a Neighborhood Market,

the grocery-only concept by

Walmart.

The center’s owner, Brix-

mor Property Group, a real

estate investment trust that

went public in late 2013 and

is the nation’s second-largest

owner of community and

neighborhood shopping cen-

ters, understood it wouldn’t

make sense to have a mod-

ern Neighborhood Market

anchoring the center, with

the rest of it still looking like

it came from an era when

disco was the rage.

Indeed, a number of newer

shopping centers had been

built along the Hampden

Boulevard corridor, as well

as farther north in central

Aurora and the Glendale/

Denver area submarket

along the Leetsdale Drive

corridor.

So Brixmor, whose prede-

cessor company had paid

$6.2 billion in 2007 for an

Australian company whose

87million-sf portfolio includ-

ed Villa Monaco, decided to

hire Denver-based G3 Archi-

tecture and Maxwell Build-

ers Inc. to breathe new life

into the aging center.

Its much-needed facelift

recently was completed,

about a week ahead of sched-

ule and within the budget,

said Scott Higa, principal of

G3 Architecture.

Capital

improvements

included a new parking lot,

landscaping, a new roof and

new signage.

“The center was really old

and tired,” Higa said. “It is

an early ‘70s retail center and

it had not been architectur-

ally upgraded for 40 years.”

To modernize the center,

Villa Monaco retail center gets a facelift

A Neighborhood Market is a new anchor at the Villa Monaco shopping center.

Please see VillaMonaco, Page 10

CONTENTS

Greater Denver 4 Boulder County 18 Larimer & Weld Counties 20 Colorado Springs 24 Finance 27 Law &Accounting 3

0

Property Management 32

CDE

38

Office 2AA Health Care 3AA Retail 4AA Industrial 7AA Multifamily 10AA Who’s News 19AA New use A multitenant office building

in downtown Denver will be

transformed into a hotel

Boutique shopping The Laramar Group pays $26.7

million for five Boutique

Apartments properties

Retail play The Kroenke Group acquires

the Shoppes at Castle Rock

in a $24.27 million transaction

Getting high Marijuana growers are

driving up prices for

industrial user buildings

Inside

4 6 1AA 1AA See Section B