Vestar Grabs 900 KSF Denver-Area Regional Retail Center for $124M
- Jan 09, 2014
Vestar, which boasts a hearty retail portfolio spanning the Western United States, has just added metropolitan Denver to its footprint with the acquisition of the 914,000-square-foot Orchard Town Center in Westminster, Colo. The real estate company, acting in a joint venture with a fund advised by UBS Global Asset Management, purchased the open-air regional retail center from Forest City Enterprises Inc. for $123.5 million in cash.
It was just a matter of time before Vestar entered Denver; the city was in its path.
“We have a targeted aggressive approach in acquiring value-add retail properties in major metropolitan areas from Texas to California and up to Seattle,” David Larcher, executive vice president of Vestar, told Commercial Property Executive.
Sited approximatley15 miles north of downtown Denver, Orchard Town Center made its debut in 2008, developed by Forest City at an investment cost of approximately $165 million. The center, which was marketed on behalf of the seller by commercial real estate services firm Cushman & Wakefield Inc., is presently 89 percent leased. Vestar plans to upgrade and rebrand the property, offering new amenities and new retailers. Even Forest City, which sold the asset as part of its retail portfolio restructuring effort, acknowledges that the potential for greater success exists. “[Orchard Town Center] well positioned in a growing market, with opportunity to improve sales and net operating income going forward,” David LaRue, Forest City president & CEO said in the company’s press release on the disposition.
Vestar is continuously on the hunt across the West for assets like Orchard Town Center. Over the last two-and-a-half years, the company has acquired $1 billion of retail centers, and it is undaunted by the investment community’s strong interest in similar product.
“We expect that there will be ample supply to meet our acquisition needs in the future,” Larcher aded. “We are currently in a competitive market but Vestar has the experience, knowledge and capital to close quickly on properties that meet our needs in today’s market.”