CENTENNIAL, CO – [May 31, 2022] – Blue West Capital has completed the sale of three outparcels at The Streets at SouthGlenn in Centennial, CO. The sale includes:
- Three Building Multi-Tenant Retail Hard Corner: 2330 – 2370 E Arapahoe Rd and 6703 S University Blvd
- Chick-fil-A & Café Rio Outparcel: 6997 S University Blvd
- Verizon Outparcel: 6997 S University Blvd
Tom Ethington, of Blue West Capital, represented the seller in each transaction, a national developer, and a repeat client based in Colorado. The properties sold individually to private capital 1031 exchange investors looking for long-term asset preservation.
The three-building multi-tenant retail outparcel to The Streets at SouthGlenn consists of 24,389 square feet and is 100% leased to many nationally recognized tenants including Qdoba, Mattress Firm, Noodles and Co., Great Clips, Pearle Vision, Dairy Queen, and more. The center is located on the southwest corner of East Arapahoe Road and South University Boulevard, giving it high visibility with over 71,000 vehicles per day. This highly desired multi-tenant portfolio sold for $15,700,000.
The Chick-fil-A and Café Rio outparcel is a two-tenant retail building consisting of 7,350 square feet located at The Streets at SouthGlenn’s main entrance. The 100% leased property benefits from excellent visibility and synergizes with the large consumer draw of the regional shopping center. The location is anchored by Whole Foods, which ranks fifth for the number of visits among all Whole Foods in the state of Colorado. The property sold for $6,539,000.
The Verizon outparcel is a two-tenant retail building consisting of 4,293 square feet and is 100% leased to Verizon and First Look MRI. The building sits adjacent to the Chick-fil-A and Café Rio building as well as University Blvd which each tenant greatly benefits from the high traffic area. The property sold for $3,535,000.
“The developer and equity partner have a core long-term strategy for the continued development of The Streets of SouthGlenn. The timing was right for the partnership to sell the high-value outparcels, and we were excited to team up with them to execute their strategy while maximizing each building’s value,” commented Tom Ethington.
The Streets at SouthGlenn brings urban sophistication to the Denver suburbs. The upscale destination, located in the heart of Centennial, CO, is South Denver’s premier gathering place with over 4.6 million customers annually. The thriving lifestyle center includes key anchors Whole Foods, Best Buy, Regal Theaters, H&M, SouthGlenn Public Library, a 214-unit apartment building, and a 131,000 square foot class A office building. The surrounding area has a population of 290,725 with an average household income of $133,564.
The 3,718 square foot Aspen Dental property is located north of US Highway 34 in Centerplace of Greeley III, apower center owned by Regency Centers. The property benefits from excellent US Highway 34 visibility and is an outparcel directly in front of Best Buy. The Aspen Dental lease features a corporate guarantee and a brand new 10-year term with options. The building was originally constructed as a Steak ‘N Shake and was renovated and repurposed into the Aspen Dental in 2022. The property is positioned in an affluent area with average annual household incomes of $92,000 within one mile.
“Single tenant net lease properties with high quality locations and minimal landlord responsibilities are at the forefront of demand amongst net lease and 1031 exchange investors. The 10% rental increases were appealing to investors wanting to achieve the best risk-adjusted returns in a rising interest rate environment,” said Robert Edwards, Managing Partner.