Three net-leased retail properties located in metro Denver, Colorado Springs and Pueblo, recently sold for a combined $13.68 million. Brad Lyons, Matthew Henrichs and Parker Brown with CBRE’s National Retail Partners group in Denver represented the seller on each transaction.
“The market for high-quality, net-lease investment opportunities across the Colorado Front Range is increasingly competitive given the existing dynamic of low inventory and pent-up investor demand,” said Mr. Brown. “Colorado’s retail sector has proven resilient over the last 12 months and is now firmly on the radar of investors seeking opportunities to enhance their real estate portfolios.”
The metro Denver property is a 5,669-square-foot convenience store fully leased to Kum & Go at 2700 S. Havana Street in Aurora. The newly built store includes a Go Fresh market and is located just off South Parker Road at the intersection of South Havana and East Yale Avenue. A private 1031 exchange investor purchased the property for $8.26 million. Tyler Dingel with CBRE | Hubbell Commercial in Des Moines partnered with the Denver-based CBRE team in brokering the sale.
Located at 515 N. Murray Boulevard, the Colorado Springs property is a newly constructed, fully leased, single-tenant, 2,200-square-foot retail building. Completed in September 2020, the building includes a drive-thru and is located at the intersection of Platte Avenue and Murray Boulevard, just east of The Citadel Mall. A separate private 1031 exchange investor purchased the property for $2.87 million.
The Pueblo property is the Eagleridge Center, located at 4120 N. Freeway Road. The building is fully leased to three medical and service-based tenants: Bliss Nail Lounge, QwikCare MD Urgent Care Center, and Nursing & Therapy Services of Colorado. The 10,666-square-foot building was built in 1998 and is located at one of Pueblo’s most active retail nodes, near the intersection of Interstate 25 and Highway 50. A private discretionary investor purchased the property for $2.55 million.
Activity in smaller multi-tenant and single tenant net lease properties priced between $1 million and $3 million climbed significantly in the fourth quarter of 2020, according to CBRE research. In metro Denver, this subset of the retail investment market saw 35 sales in the fourth quarter of 2020 compared to 24 sales in Q4 2019.
