The seller was its developer, longtime Denver developer Jordon Perlmutter. Garrette Matlock of Marcus & Millichap represented Perlmutter & Co. in the transaction. Matlock tells GlobeSt.com that he thinks the sale represents the largest retail deal in the Denver metro area during the past 12 months. The center, 99% leased, attracted a lot of interest.
"We had quite a few offers," Matlock tells GlobeSt.com. "Then, Jordon selected the one he wanted to go with." LaSalle bought the center on behalf of one of its funds, he says.
Ten of the 12 anchors in the 51-tenant center were part of the sale, Matlock tells GlobeSt.com. Lowe's Home Improvement center and Mervyns own their own buildings so were not purchased by LaSalle, he notes. Tenants in the center include Bed, Bath & Beyond, Borders Books, Gart Sports, JoAnn Fabrics, Marshalls, Office Depot, Old Navy, PetsMart, Ross Dress for Less and Ulta Cosmetics. The center was built in 1999 and 2001 on the 71.6-acre site.
It originally was the Northglenn Mall, also developed by Perlmutter. He tore it down to replace it with the power center in a public-private partnership with the city of Northglenn, which kicked in $12 million in subsidies for the redevelopment.
Matlock tells GlobeSt.com it was a good time for Perlmutter to sell, considering the interest in income-producing real estate from investors. "He was getting a good value," Matlock says. Noting his reluctance to quote cap rates because different groups calculate it differently, Matlock says it sold in the low 6% range.
Matlock says that LaSalle also received a good deal. "It is a premiere center in a great location," Matlock tells GlobeSt.com. "It's in an area that is experiencing a lot of growth. Long-term, it's going to be a homerun for them."
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