Starbucks-Anchored Retail Building Sells for Record Pricing
A newly constructed, five-tenant retail building located at Denver Airport Hotel Row, has sold for $5.6 million, representing record pricing for a multi-tenant retail pad in the Mountain States region in 2020.
Built in 2018, the 10,300-square-foot building is situated on 1.59 acres at 6991 N. Tower Road and is leased to Starbucks (with a drive-thru), Jersey Mike’s Subs, BurgerIM, Pho 92 Vietnamese restaurant and Jasmine Nails & Spa. The property is located at the signalized southwest hard corner intersection of Tower Road and 67th Avenue, adjacent to the Denver International Airport
Executive Vice Presidents Jeff Lefko and Bill Asher with Hanley Investment Group Real Estate Advisors, along with ParaSell, Inc., represented the seller, Wadsworth Development Group of Draper, Utah. The buyer, Kamby Real Estate, LLC of Scottsdale, Arizona, was represented by David, Hicks & Lampert Brokerage, LLC of Greenwood Village.
“Investor demand for new construction, multi-tenant retail pads with a drive-thru, surged back to pre-COVID levels in the 4th quarter 2020,” said Lefko. ”We had a tremendous amount of interest because of the strength of location and the tenant mix headlined by an endcap Starbucks drive-thru.”
According to Asher, “Retail at Hotel Row consists of a strong mix of service-based, internet-resistant tenants that are positioned for long-term success. Starbucks is the closest Starbucks drive-thru to the airport and Jersey Mike’s is operated by the largest Jersey Mike’s franchisee in Colorado. BurgerIM’s Denver market was recently purchased by a strong franchisee who is investing significant capital into the location.”
Hotel Row is also located in the path of current and future growth in the High Point master-planned community. Since 2000, the population within a 3-mile radius increased by 413 percent and is projected to increase an additional 23 percent by 2024. The community will ultimately include over 12 million square feet of commercial development and 3,000 residential units.
“With the lack of high-quality, single-tenant net lease investments available for sale along with minimal new development of single-tenant net lease retail assets, investors are expanding their search to include multi-tenant retail pad buildings in strong and growing markets,” said Asher.
Photo courtesy of Hanley Investment Group