Cole Buys 430 KSF Shopping Center in Denver Area for $117M
- Jan 20, 2014
Cole, the Phoenix-based net-lease REIT, has purchased the major portion of Cornerstar, a 750,000-square-foot regional power center in Aurora, Colo., from a joint venture of PCCP LLC, of San Francisco, and Alberta Development Partners, of Greenwood Village, Colo., for $116.5 million, the sellers announced Friday. The closing took place Dec. 31, a spokesperson for the sellers told Commercial Property Executive.
The buyer acquired 430,000 square feet of the center, including Target, Office Depot, 24 Hour Fitness, Sprouts Farmers Market and Dick’s Sporting Goods, along with numerous small shops and restaurants, including Red Robin, Tokyo Joes, Which Which and Real de Minas. This portion of the center is 97 percent leased.
Target is also an anchor tenant at the center, but was not part of the transaction.
The PCCP/Alberta JV had purchased 158 acres for the development of Cornerstar in March 2006, sold a 9.7-acre site to Target in December 2007, and sold an 18-acre site to a multi-family developer in August 2008. The center, at Parker and East Arapahoe roads, opened in November 2008. In 2012, the owners developed an additional 10,000 square feet of inline shops, which have since been leased.
“Although this project made its debut in the midst of the economic downturn, the quality of the development, its prime location and Alberta Development Partners’ local market knowledge and tenant relationships were key factors in making Cornerstar a success,” said Philip Russick, principal with PCCP. “With a lack of stabilized, Class A retail real estate in the region, we felt it was a strategic time for this disposition.”
Ron Urgitus, Brad Lyons and George Good of CBRE represented PCCP/Alberta in the transaction. Cole represented itself.
Just two weeks ago, CPE reported that in the fourth quarter, the average cap rate for net-leased retail space declined to its lowest level in the last decade, dropping 17 basis points to 6.85 percent, according to a report from The Boulder Group.