(For more retail coverage, click GlobeSt.com/RETAIL.)
NORTHGLENN, CO-LaSalle Investment Management Co. recently paid $91 million for the Northglenn Marketplace in this Denver suburb. LaSalle bought 439,273 sf of the 664,258-sf center, which is located 12 miles north of Denver at Interstate 25 and 104th Avenue.
The seller was its developer, long-time 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."
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
