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Page 14 - April 5-18, 2017 COLORADO REAL ESTATE JOURNAL
Retail
PRIME BOULDER COLORADO
PARCEL FOR SALE
2830 Arapahoe Avenue - URBAN MATTRESS
2860 Arapahoe Avenue - HARPO’S SPORTS GRILL
2890 Arapahoe Avenue - DLS TIRE CENTERS
• 1.69 acres along 425 square feet fronting Arapahoe Avenue, between
Culver Court and 29th Street.
• The three properties are being sold as a package only, with an asking
price of $7,000,000.
• 4.95% Cap Rate
• Leases have annual increases terminating Dec. 31, 2023
Contact Jeffrey Hirschfeld
D 303.454.5425
The information above has been obtained from sources believed reliable. While we do not doubt its accuracy we have
not verified it and make no guarantee, warranty or representation, express or implied, about it. It is your responsibility
to independently confirm its accuracy and completeness. Any projections, opinions, assumptions, or estimates used are
for example only and do not represent the current or future performance of the property. The value of this transaction
to you depends on tax and other factors which should be evaluated by your tax, financial, and legal advisors. You and
your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the
suitability of the property for your needs. The information contained herein (including, without limitation, prices and
rental rates) is subject to change and/or withdrawal without notice. FEB2017
INCLUDES THREE ADJACENT SINGLE NET LEASED PROPERTIES
by Jennifer Hayes
A pair of leases inked by West-
erra Credit Union helped pave the
way for the sale of two metro area
retail assets.
The properties were sold by
Northstar Bank, a subsidiary of
Texas-based Carlile Bancshares,
which previously acquired the
Colorado Community Bank and
The Bank at Broadmoor as well as
both banks’ real estate assets.
Assets included a 6,454-square-
foot freestanding Northstar
branch at 20991 E. Smoky Hill
Road in Centennial that didn’t
fit Northstar’s locational require-
ments, so the bank opted to shut
down the branch last summer,
explained Avison Young Principal
Rick Egitto.
Quickly thereafter, the space
was backfilled by Westerra Credit
Union, which had been located
a half-mile to the west of the
Centennial site. Westerra inked a
10-year lease at the building, as it
liked the frontage along Smoky
Hill and freestanding nature of the
Northstar property.
“With Westerra’s long-term
lease, the building became very
attractive to the investment com-
munity as a 1031 exchange,”
added Egitto. “There was a lot
of interest in the asset in that
you don’t get credit union-type
of buildings available that often.
After leasing the property to Wes-
terra and it taking occupancy, the
building was put on the market
and not even within three weeks
it was under contract. It was the
perfect scenario for the bank.”
Egitto, along with Avison asso-
ciate Sam
Crowe, bro-
kered the sale
of the building
constructed in
2004. Smoky
Hill LLC and
Chase Adam
LLC paid $1.93
million for the
building.
Northstar also
inherited two branches in the Cas-
tle Rock market, one downtown,
the other at 4625 Trail Boss Drive,
which included retail strip space.
The 14,825-sf center, construct-
ed in 2001, also was considered
excess real estate by Northstar,
which opted to backfill the loca-
tion.
Sam’s Club temporarily leased
the 4,839-sf bank end-cap as a hir-
ing center for its new Castle Rock
location. While this was occur-
ring, Egitto explained, Avison
Young was working with West-
erra on the Centennial lease and
discovered they were also looking
for a Castle Rock location, which
led them to also signing a 10-year
lease for the end-cap, which it will
occupy in June. Sam’s vacated the
space in January.
With the bank’s space leased
long term, Northstar retained
Avison to sell the property. CWC
Income Properties 5 LLC, a Cali-
fornia 1031 exchange investor,
paid $4.34 million for the asset,
located just east of Interstate 25
along Founder’s Parkway.
“The buyer loved the long-term
nature of the financial institution
and loved the named tenants we
had in the shopping center,” said
Egitto, who handled the leasing
and sale of the center for North-
star. Tenants at the center include
FedEx, Little Ceasars Pizza, Slim-
Genics, Castle Rock Cosmetic and
Family Dentistry and a local nail
salon.
Carrington Real Estate Services
represented the buyer.
“It was just a really well located
piece of real estate that had some
under-market rents in it so there is
some upside there,” noted Egitto.
“This is the seventh acquisition by
this group out of California inCol-
orado, all retail centers, and goes
to the heart of the fact that there
are a lot of people out of Califor-
nia moving their money here for
taxes and better returns. You have
4 to 5½ cap rates in California and
here they bought this property at
a 7 to 7½ cap. That is why you
see a lot of money coming in from
California.”
Other News
■ Evergreen Devco Inc. and
City Street Investors broke
ground on an 8,440-square-foot
multitenant building in Stapleton.
The Eastbridge North retail
development comprises nearly an
acre of land on the northeast cor-
ner of Geneva Court and Martin
Luther King Boulevard.
“We’re always striving to bring
exciting retailers and restaurants
to our projects that neighbors
want and need,” said Tyler Carl-
son, a managing principal of
Evergreen. “That’s exactly what
we’re doing in Stapleton with
both Eastbridge Town Center and
Eastbridge North.”
Eastbridge North contains four
suites. A Supercuts hair salon and
a Pacific Dental Services office will
open in two different spaces, and
negotiations are underway for the
remaining two spaces.
“We’ve received a lot of ten-
ant interest in Eastbridge North,”
said Carlson. “We plan to make
more announcements soon on
the remaining two tenants for
our first building at Eastbridge
North, plus we’re working on a
second Eastbridge North building
to accommodate additional tenant
interest.”
Eastbridge North is expected to
open in fall. To the south of the
development is the recently com-
pleted Eastbridge Town Center.
Its first tenant, Pilates Evolution,
opened a 1,200-sf location in mid-
February.
Catamount Constructors Inc.
is the contractor for Eastbridge
North, which was designed by
NewYork-based G3 Architects.
■ Crosbie Real Estate Group is
marketing retail lease opportuni-
ties at anewKingSoopersMarket-
place in northwest Arvada.
A 123,000-sf store at the north-
west corner of Candelas Parkway
and Indiana Street is slated to
open in March 2018. The 22-acre
development also will include a
nine-unit fuel center, 7,100 sf of
attached inline space as well as
four pad sites available for lease or
purchase.
■ NAI Shames Makovsky
recently handled several retail
leases in the Denver metro area.
Bruce Boxer of NAI Shames
Makovsky represented landlord
OCB RedPeak GCI 1 LLC in its
lease of 3,475 sf of space at 400
E. Ninth Ave., Unit C, Denver, to
tenant Tap Fourteen Uptown Inc.
Matt Emmons of NAI Shames
Makovsky represented French for
Sugar – Sweets & Treats LLC in
its lease of 3,050 sf at 5724-5728 E.
Colfax Ave. in Denver. The land-
lord was Ginsburg & Co. LLP. ▲
A retail center in Castle Rock sold for $4.34 million. Westerra Credit Union
will occupy an end cap at the center this summer.
Rick Egitto