(For more retail coverage, click GlobeSt.com/RETAIL.)

LITTLETON, CO-Bowles Avenue Marketplace, a 171,634-sf shopping center here has changed hands for approximately $26.6 million. Portland-based RealNet Equities LLC, a tenant-in-common sponsor, acquired the property on behalf of 14 investors who will use the property to complete IRS 1031 exchange transactions.

Bowles Avenue Marketplace covers 13.3 acres at the intersection of Wadsworth Avenue and W. Bowles Avenue, approximately 15 miles southwest of downtown Denver. The four brick buildings on the site were constructed in 1985 and renovated in 2003 and 2004. Vacancy at the property is approximately 10%. Tenants inlcude Bally Total Fitness, Hancock Fabrics, Checker Auto Parts, and Tuesday Morning. "As it sits, the asset will generate attractive and stable cash flows for our clients," says Scott Fouser, president and CEO of RealNet Equities.

The area immediately surrounding Bowles Avenue Marketplace is nearly completely built-out in terms of commercial space and residential densities are strong. Adjacent to the property, General Growth Properties is preparing for a "lifestyle" expansion of Southwest Plaza Mall. "This project should have a positive impact on both demand and rental rates at Bowles," Fouser says.

RealNet specializes in TIC transactions and sourcing investment-grade replacement property for 1031 exchanges. Since June 2006, the firm closed 6 acquisitions totaling $56 million in Oregon, Indiana, Texas, and Colorado. The company anticipates acquiring an additional $75 million in commercial real estate during the remainder of 2007.

Patrick Devereaux and Gene Pride of Cushman & Wakefield had the disposition assignment for Bowles Marketplace. RealNet's acquisition financing was provided by Countrywide Commercial Mortgage. Fouser says the capitalization rate on the investment is approximately 7.5% (based on in-place numbers). Frederick Ross Co. is the new property manager.

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
NOT FOR REPRINT

© 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.