Denver, CO – CBRE Group, Inc. recently announced the $13 million sale of the Summit Square shopping center located at 8410-8472 Federal Boulevard in Westminster, Colorado. Matthew Henrichs and Brad Lyons of CBRE Capital Markets Denver Retail Investment Properties represented the seller, AZG Summit Square LLC of Mesa, Arizona. The buyer, a confidential Colorado-based 1031 investor, purchased the 94,244-square-foot property in a sale that closed Sept. 16, 2016. At $13 million, the transaction marks the largest non-grocery anchored shopping center sale in metro Denver to date this year.
“Summit Square presented a unique investment opportunity combining a high-traffic, high-visibility, in-fill location with a strong tenant roster and the chance to add value through lease-up and development of a vacant pad site,” said Mr. Henrichs, first vice president, CBRE Capital Markets, Denver Retail Investment Properties.
Built in 1980, Summit Square sits on 10.58 acres at the northeast corner of West 84th Avenue and Federal Boulevard with combined traffic counts in excess of 59,300 vehicles per day. The property consists of one multi-tenant building and four single-tenant buildings in addition to the vacant pad site. Ninety-one percent leased at the time of sale, some of the current retailers include Big Time Trampoline, Inspire Fitness, Adams County DMV, H&R Block, Blackjack Pizza, Grease Monkey and Baskin Robbins. More than 328,500 residents live within a five-mile radius of the shopping center, which is approximately 16 minutes northwest of downtown Denver.
Recognizing the unique appeal of Summit Square, CBRE’s Henrichs and Lyons not only advised, marketed, secured a buyer and closed the sale but also helped to facilitate third-party reports, due diligence efforts and sourcing of debt relationships.
“Transactions in this middle market private capital space at values above $10 million take strong relationships and an in-depth working knowledge of all facets of the transaction to secure a successful outcome,” said Mr. Henrichs. “In the end the seller received a nice return on their investment, and the buyer is now well positioned to use the asset as a cash flow vehicle while taking advantage of the long-term upside potential of the maturing trade area.”
Image courtesy of CBRE