Denver’s Sidford Capital Purchases Denver Retail Center, Plans for Major Renovations
DENVER — Parker Point, a neighborhood retail strip center located at 7920 and 7950 E. Mississippi Avenue in Denver, at the intersection of Parker Road and East Mississippi, has been sold for $2.8M. Parker Point is comprised of two standalone buildings, together measuring approximately 19,943 square feet. A $150,000 renovation is expected to reposition the center.
Parker Point was purchased by Sidford Capital, LLC, a Denver-based commercial real estate investment firm with a current portfolio of just under 1,000,000 square feet of space in select office, retail and industrial properties along the Front Range. The seller was Loup Development Company.
NKF Capital Markets Executive Managing Directors Riki Hashimoto and Dan Grooters represented Sidford Capital, LLC on the transaction.
Parker Point is currently 77 percent leased to nine tenants, the local’s favorite Mugsy’s Bar, plant-based Meta Burger and All American Pawn among others. Three additional spaces remain vacant, and two can be combined for a total of 3,200 square feet of availability. Located on busy Mississippi Avenue, the retail center offers dual access along both Mississippi and South Parker Road, is adjacent to a Conoco and a 7-11, and is an appropriate fit for numerous service tenants including cellular, computer and telephonic retail sales, hardware or tool stores, and potential entertainment uses. Prime Management LLC, a wholly owned subsidiary of Sidford Capital LLC, will handle leasing and management of Parker Point.
“We have capital investment plans for Parker Point,” commented Andrew Lay, associate with Sidford Capital LLC/Prime Management LLC. “We will reposition the center with a $150,000 renovation and improvement plan, including white boxing all vacancies, improvements to the HVAC systems, extensive renovations – including exposing the ceilings to create a modern look – and new landscaping and paint will deliver a fresh product to the market in an ambitious six-month window.”
“Parker Point offers the new owners Sidford Capital an opportunity to refresh and stabilize the center, further adding to an already diverse neighborhood market that includes Walmart, Costco and other big retail attractions nearby,” remarked Hashimoto. “The average age of retail properties in the Southeast submarket is 33 years, so repositioning this well-located, well-leased asset will give it a considerable competitive advantage.”
According to the NKF press release, the Denver retail market posted absorption of negative 328,288 square feet in first-quarter 2018, driven by several closures of mid-to large-format national tenants in the South and West submarkets. The Southeast submarket, home to Parker Point, was stable with flat quarterly absorption of negative 23,196 square feet, due to various small move-outs. Vacancy stood at 5.6 percent, up from 5.2 percent in the prior quarter but down year-over-year from 5.8 percent. Current vacancy is below the market’s overall vacancy of 6.3 percent and has been around 6 percent for the last three years.
Formed in 2000, Sidford Capital also includes Prime Management LLC, a multi-generation middle-market commercial real estate owner and developer. Current properties include Bridges at Smoky Hill, Broadway Square, Grandview Plaza and Reno Place, Meadows at Lone Tree, Sherman Plaza, Trautman and Shreve portfolio, Zocalo, 1st and Adams, 8th and Albion, 100 Garfield Street, and 1275 Grant. The company’s niche is high performing Class B and C properties with value opportunities in select markets.