Colorado Real Estate Journal - April 5, 2017
A pair of leases inked by Westerra 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 requirements, 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 community 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 Westerra 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 associate Sam Crowe, brokered 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 Castle Rock market, one downtown, the other at 4625 Trail Boss Drive, which included retail strip space. The 14,825-sf center, constructed in 2001, also was considered excess real estate by Northstar, which opted to backfill the location. Sam’s Club temporarily leased the 4,839-sf bank end-cap as a hiring center for its new Castle Rock location. While this was occurring, Egitto explained, Avison Young was working with Westerra 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 California 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 Northstar. Tenants at the center include FedEx, Little Ceasars Pizza, SlimGenics, 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 in Colorado, all retail centers, and goes to the heart of the fact that there are a lot of people out of California 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 corner 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 Carlson, 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 tenant 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 completed Eastbridge Town Center. Its first tenant, Pilates Evolution, opened a 1,200-sf location in midFebruary. Catamount Constructors Inc. is the contractor for Eastbridge North, which was designed by New York-based G3 Architects. Crosbie Real Estate Group is marketing retail lease opportunities at a new King Soopers Marketplace in northwest Arvada. A 123,000-sf store at the northwest 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 landlord was Ginsburg & Co. LLP.