Transactions Report Week Ending 10.19.18
HFF Announces $2.36M sale of Hilltop Medical Building in suburban Denver
Holliday Fenoglio Fowler, L.P. (HFF) announced the $2.36 million sale of Hilltop Medical Building, a 7,929-square-foot medical office asset in the southeast Denver-area community of Parker.
Hilltop Medical Building is located at 19964 Hilltop Road just off Highway 83 in Parker, approximately a half hour from downtown Denver. The Parker area has experienced substantial growth over the last several years with the addition of several residential master-planned communities, new amenities, employment hubs and improved connectivity to metro Denver. Hilltop Medical Building caters to the surrounding affluent neighborhoods and is just 10 minutes south of Parker Adventist Hospital. Completed in 2006, the property is fully leased to two tenants: Rocky Mountain Spine & Sport Therapy and UC Health Family Medicine.
The HFF investment advisory team representing the seller consisted of managing director Jules Sherwood and director Nate Perry.
Pinnacle Announces the Sale of Academy Manor Apartments
Pinnacle Real Estate Advisors, LLC announced the sale of 1520-1534 Jamboree Drive, located in northeast Colorado Springs. Academy Manor is a 64-unit apartment building and traded hands for $7.55 million ($118,000 per unit). Erik Toll, advisor, represented the seller. Michael Krebsbach, senior advisor, represented the buyer.
“Having recently undergone a plethora of capital improvements and renovations, the asset was primed for rent growth and new property management initiatives,” stated Toll. “It was the most vintage property in the seller’s portfolio. It made sense to sell, and dually left plenty of meat on the bone for potential acquirers.”
“The property is located in the northeast quadrant of the Springs, and has a very favorable unit-mix of half 1-bedroom apartments and half 2-bedroom apartments. It is very satisfying knowing we helped both the seller and buyer accomplish their goals,” added Krebsbach.
Southwest Colorado Springs Welcomes Two New Retailers
CBRE announced that it has arranged new leases for Old Navy and Ulta Beauty at 2120 Southgate Road in Colorado Springs, part of Broadmoor Towne Center. CBRE’s Dan Rodriguez represented the shopping center’s landlord, GRE Broadmoor, LLC, of Dallas, Texas. This will be a third location for both Old Navy and Ulta Beauty in Colorado Springs. Both retailers have existing locations in the North Academy and Powers trade areas.
“This expansion into southwest Colorado Springs is a strategic move for both brands, allowing them to triangulate their presence in the market and reach the maximum number of consumers. It’s encouraging to see companies like Ulta Beauty and Old Navy, who are leaders in their industry, grow their presence in the Springs; it speaks to the strength of our retail market and the growing attractiveness of our city on the national stage,” said Dan Rodriguez, senior associate with CBRE’s Retail Services in Colorado Springs.
The two retailers are locating next to each other in the space previously occupied by The Sports Authority on the east side of Broadmoor Towne Center on Southgate Road. The shopping center is home to a mix of other big box and small shop stores including The Home Depot, Bed, Bath & Beyond, Petsmart, Ross Dress for Less and Michaels.
Douglas Archer, president of Benchmark Opportunity Partners, LLC, the investment manager of GRE Broadmoor, LLC stated that Dan Rodriguez identified multiple replacement tenants allowing the owner to continue to provide retail synergies for the South Colorado Springs property.
“While national headlines trumpet the instability of the retail industry in the face of growing e-commerce, bricks-and-mortar locations remain the backbone of primary retail distribution today, and the industry isn’t as doomy or gloomy as it may appear,” added Mr. Rodriguez.
Broadmoor Towne Center is located at the northeast corner of Hwy 115 and Lake Avenue, just west of I-25. Christopher Burton of Legend Partners represented Old Navy in its lease, while John Liprando of Sullivan Hayes represented Ulta Beauty.
Both retailers are scheduled to open at Broadmoor Towne Center in the summer of 2019.
“The Firestone Shopping Center represents our ability to turn around shopping centers that are facing challenges in regards to their market presentation and occupancy levels,” said Brian Pesch of Western Centers. “We have a strong track record of maximizing value for our investors and delivering a quality product back to the community and potential buyers. We’re looking forward to continuing to discover and act on similar opportunities in the future.”
Some of the improvements Western Centers made to the Firestone Shopping Center during the company’s ownership included recoating the roof and painting the property, as well as signed leases with Papa John’s Pizza, State Farm Insurance and 3 Margaritas.
McWHINNEY Purchases California’s Hyatt House Irvine/John Wayne Airport
Denver-based McWHINNEY has purchased the Hyatt House Irvine/John Wayne Airport in Irvine, California.
The seven-story hotel features 149 spacious, residential-style guest rooms with separate spaces to sleep, work and play and 1,160 square feet of meeting space. Amenities at the Hyatt House Irvine include a modern Fitness Center, the H Bar bistro & lobby bar, a 24-hour market and free Wi-Fi throughout the hotel. Guests enjoy free daily breakfast and the outdoor pool and patio featuring a grill and fire pits.
Opened in December 2017, the property will continue to be managed by Hyatt Hotels.
The hotel is conveniently located in Irvine’s Central Business District offering easy access to John Wayne Airport, Disneyland, Knott’s Berry Farm, Laguna and Newport Beaches and more.
McWHINNEY’s existing hospitality portfolio includes a wide variety of lodging properties in the Western United States, including The Maven Hotel at Dairy Block in downtown Denver, the AC Hotel Portland in Oregon and The Elizabeth Hotel in Fort Collins.
The company also owns the 123-room Hyatt House Denver Airport Hotel. McWHINNEY is currently co-developing a new Courtyard by Marriott at Centerra in Loveland with Stonebridge, a 226-room Hyatt Place hotel at Denver’s Peña Station NEXT with Sage Hospitality and recently broke ground on a new 294-room Hyatt Place hotel in Boston’s vibrant Seaport District.
“McWHINNEY is excited to be adding another Southern California hotel to our hospitality portfolio,” said Dave Johnstone, chief investment officer of hospitality at McWHINNEY. “This new property offers an extensive list of amenities, including a great central location and free airport shuttle service.”
The seller, a private investor, was represented by Brian C. Smith, CCIM, SIOR, first vice president investments located in Marcus & Millichap’s Denver office. The buyer, a private investor, intends to redevelop the property. Smith stated that the asset is “an incredible historic property that, when the conversion to multi-family is finished, will be a special place to reside for many years to come.”
The property lies at the heart of Downtown Pueblo, just minutes west of I-25 and a short walking distance from a number of local attractions, such as the Historic Arkansas Riverwalk, the Pueblo Convention Center and a number of popular local restaurants & specialty shops. This historic office building was built in 1891 and currently has a large banquet hall with two kitchens on the main floor and professional offices and a residence on the second floor. The third, fourth and fifth floor have demolished space that is ready for redevelopment. In addition, the property includes 23 parking spaces in a private lot directly across the street.
Currently, on the U.S. National Register of Historic Places, the Historic Masonic Building gives the investor the ability to own a piece of Pueblo history with significant redevelopment opportunity.
- Marcus & Millichap (NYSE: MMI) announced the sale of Starbucks, a 2,475-square-foot net-leased property located in Denver, according to Ryan Sarbinoff, regional manager of the firm’s Phoenix office. The asset sold for $3.405 million. Jamie Medress and Mark Ruble, investment specialists in Marcus & Millichap’s Phoenix office marketed the property on behalf of the seller. Colorado Broker of Record, Bob Kaplan, assisted in closing this transaction. This Starbucks is located at the corner of East Colfax Avenue and Ivy Street in Denver, Colorado.
- Pinnacle Real Estate Advisors, LLC announced the sale of 3302-3368 Adobe Court in Colorado Springs. The multi-tenant industrial property, built in 1986, offered 59,500 net rentable square feet on almost six and a half acres of land. The property sold on October 9th, for a contract price of $4.01 million ($67 per square foot). The property featured 20 tenants, a national and local mix, in a convenient central location with easy access. Jim Knowlton, principal, represented the buyer.
- Pinnacle Real Estate Advisors, LLC announced the sale of 821 North Glendale Avenue located in Pueblo. The 9 unit multifamily building sold for $440,000 or $48,888 per unit. Thomas Graeve, Senior Advisor represented the seller and Dallas Sherman, associate advisor, represented the buyer.
- According to Denver County public records, Denver Financial Center at 1775 Sherman St. sold for $95.25 million. The seller, TR Denver Financial Center LLC, bought the center from U.S. Premier Office Equities LP and CBRE confirmed that it brokered the deal. The Denver Financial Center has 436,000 square feet of space in a 31-story high-rise and a smaller, adjacent low-rise building.
- Marcus & Millichap announced the sale of a 21,275-square-foot industrial warehouse building located at 5335 Sterling Drive in Boulder. The asset sold on July 31, 2018, for $4,250,000 representing a six percent cap rate. The buyer, a private investor in this transaction, was represented by Brian Smith, CCIM, SIOR, first vice president investments located in Marcus & Millichap’s Denver office.