Page 16 —
COLORADO REAL ESTATE JOURNAL
— June 1-June 14, 2016
Retail
by John Rebchook
A local investor recently
paid $4.85 million for Centen-
nial Corner, a retail center near a
Walmart Supercenter.
The investor, who did not
want to be named, paid $259
per square foot for the 18,719-sf,
two-building center at 10909 E.
Arapahoe Road in Centennial.
“It was an off-market deal,”
said Tom Ethington, who repre-
sented the seller in the transac-
tion with Robert Edwards.
Both Ethington and Edwards
are senior advisers at Pinnacle
Real Estate Advisors.
Kevin Calame and Matt
Lewallen, also senior advisers at
Pinnacle, represented the buyer.
The buyer had sold an apart-
ment building in the Denver
area and purchased Centennial
Corner in a 1031 exchange.
“I would not say this has a
high cap rate (at 6.1 percent),
but the delta between apartment
cap rates and retail cap rates is
pretty wide in today’s market,”
Ethington said.
“The buyers took the oppor-
tunity of this sellers’ market in
multifamily and traded into a
higher cap rate retail asset with
less management,” Calame said.
The center will have a stabi-
lized cap rate estimated at 7.5
percent once two empty spaces,
for a total of 2,760 sf, are leased.
“This has stable income from
national tenants, but it also has a
value-add component with the
two small spaces that are avail-
able,” Ethington said.
Woodbury Corp. of Salt Lake
City developed the site in 2007.
“It was built along with a
larger parcel that included the
Walmart,” Ethington said.
“Woodbury was kind of the
master developer of the entire
site,” he said.
“The time was right for the
Woodbury Corp. to sell this asset
as they realized their original
development goals for Centen-
nial Corner,” Ethington added.
“With Walmart as the shop-
ping center anchor, the new
owners should enjoy continued
rent growth, creating long-term
value-add appreciation,” he
said.
Walmart, of course, was not
included in the acquisition.
Domino’s Pizza and Anytime
Fitness are among the major ten-
ants at Centennial Corner.
While Woodbury hired Pin-
nacle to provide an “opinion
of value,” Centennial Corner
would have generated a lot of
interest if it had been shopped
to the entire market, Ethington
said.
“The buyer was a good fit
because he was in an exchange
and came along at a good time
and at the right price,” Ething-
ton said.
“But, yes, given the value-add
component with the lease-up,
the shopping center is really
anchored by a Walmart Super-
center, and (given the) shortage
of deals like this, there is a good
backlog of buyers who would
have been interested in it,” he
said.
It also is in a high demograph-
ic area.
Pinnacle’s research found
that within a 1-mile radius of
Centennial Corner, the average
household income is $100,380.
Within a 3-mile radius, the aver-
age household income jumps to
A local buyer recently acquired this retail center in a 1031 exchange.
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