Colorado Real Estate Journal -
A California buyer won a bidding war for the Saddle Rock Marketplace at the northwest corner of E-470 and Smoky Hill Road in Aurora. SVN Equities paid just over $9 million for the center that opened in 2004 on a 10.5-acre site. “There was a lot of interest in it,” said Brad Lyons, a first vice president at CBRE’s Retail Investment Group who represented the seller, along with partner Matthew Henrichs, a senior associate in CBRE’s Denver office. “We received multiple offers,” Lyons said. “It was highly competitive. We received offers from all across the country. We had local and national interest in it.” It was a real-estate owned, or REO, asset that had been taken back by its lender. CR Asset Management was the seller. “REO deals for a center like this are a fairly scarce commodity,” Lyons said. “You don’t see a lot of them in today’s markets. The asset, I believe, was simply a casualty of the downturn. It hit a rough patch and the rents probably dropped, and at some point it was simply not able to service its debt.” The center was 65 percent occupied at the time of the acquisition. “It absolutely is a value-add opportunity,” Lyons said. “There is a lot of upside potential. I believe the new owner plans to spend the money needed to improve and stabilize the asset. I think they will do very well with it.” One thing it has going for it is a great location, he said. “The demographics in that area are fantastic,” Lyons said. “It is fairly new construction and is very close the Tallyn’s Reach master-planned community and the Southlands Mall, which added to the investor interest in it. It’s a very nice center with great access and a great location.” Tenants in the center include Wendy’s, American Family Insurance, Wingstop, Sports Clips and the UPS Store. SVN Equities, on its website, said it looks for retail value-add opportunities with upside potential. Typically, it is interested in centers priced at $10 million and above. It is only interested in properties with national tenants. Nearby big-box tenants that weren’t part of the sale include Home Depot and Albertsons. “Having strong shadow anchors like those nearby certainly provides a big benefit to the center,” Lyons said.