Erindale Square, a 103,552-square-foot open-air retail center located at 5881-5975 North Academy Boulevard in Colorado Springs, has sold to a New York City-based investor for $12.15 million, according to CBRE. The sale further indicates that brick-and-mortar retail is still consumers’ preferred mode of shopping.
The 29-unit retail center sits on a 6.93-acre parcel along the North Academy Boulevard retail corridor. Major tenants include Fodor Billiards, Bill’s Bed and Appliances, Cutting Edge Realtors, HomeFix, and The Door Christian Center. Behind the property, there is additional parking and 0.55 acres of undeveloped land zoned for business. Erindale Square was 90 percent leased at the time of sale, with 10,657 square feet available for lease.
“Erindale Square offered investors the opportunity to acquire a prominent neighborhood retail center at well below replacement cost with strong value enhancement potential,” said Mr. Brown, a vice president at CBRE. “The property attracted significant offer activity from dozens of value-oriented investors across the country. Colorado Springs is squarely on the radar for investors nationwide across the capital spectrum, who recognize the top-tier growth potential offered in the market.”
Erindale Square is located within proximity to Colorado Springs Airport, University of Colorado – Colorado Springs, Garden of the Gods, George Fellows Park and several apartment complexes. Additionally, North Academy Boulevard is one of Colorado’s most heavily trafficked retail areas, seeing around 47,600 vehicles per day.
Open-air, non-grocery-anchored retail properties offer some of the best risk-adjusted returns in commercial real estate today, according to recent CBRE research. The outlook is supported by the ongoing improvement of brick-and-mortar retail sales, the lack of new supply coming on the market and the slowing of e-commerce sales growth.