Sale of Parker Retail Asset Highlights Shift in Investor Demand for Suburban Retail Centers
Parker Keystone, a 16,600-square-foot trophy asset located at 19240-19250 East Lincoln Avenue in Parker, has sold to a publicly traded REIT. Cory Gross, first vice president of investments in Marcus & Millichap’s Denver office, arranged the transaction on behalf of Armstrong Capital Development (ACD), a private development company.
“This sale highlights the shift in capital we are seeing targeting irreplaceable, neighborhood retail centers located in high demographic suburban markets,” commented Gross. “Despite slowing market conditions and since COVID, we have seen nationally recognized retailers scrambling to adjust to a suburbanization surge of population growth. As a result, we are now seeing an increase in institutional capital deployment in a popular asset class historically reserved for high-net-worth private investors and family offices.”
Parker Keystone is a 100% occupied shopping center that offers high-profile visibility and convenience to more than 84,000 VPD and benefits from strong surrounding residential demographics including an average household income of $129,892 within a 3-mile radius. The center is the result of a major redevelopment initiative that commenced in 2016 with the annexation of the 1.8-acre site, then a blighted collection of residential parcels, into the Town of Parker.
ACD constructed the new improvements over multiple phases commencing in 2017 with a broad scope of public improvements and site work to support an initial 9,000-square-foot multi-tenant retail building. A second multi-tenant retail building followed in 2018, increasing total gross leasable area at the center to 16,600 square feet. Parker Keystone stabilized to 100% occupancy with a diverse roster of necessity retail tenants including Bank of America, Wingstop, Dunkin’ Donuts, AAA Colorado, and others.