COLORADO SPRINGS, CO-More than a dozen bidders submitted offers for a 178,252-square foot grocery-anchored power center here that ultimately sold for $25 million, according to brokers from Marcus & Millichap who negotiated the sale. The property, called Chapel Hills East, is 100% occupied and is located one mile south of Interstate 25 at 7625 North Academy Blvd., a portion of Academy Boulevard that is one of most heavily traveled thoroughfares in Colorado Springs.
Garrette Matlock, a senior vice president in the Denver office of Marcus & Millichap, listed the property on behalf of the owner and original developer, Woodland Paradise Corp. The buyer was an institutional investor.
“Chapel Hills East is one of the best located grocery-anchored power centers in the state,” says Matlock. “Its excellent location capitalizes on Colorado Springs’ growth and serves established residential areas of northern Colorado Springs.”
Built in 1995, the center is occupied by tenants including Whole Foods Market, Best Buy, DSW Shoe Warehouse, The Pep Boys, Old Navy, Office Max and Carter’s.
According to the latest research report from Marcus & Millichap, the median price of retail properties sold in the Denver market in the past year was $102 per square foot, which is 24% less than the median price in the preceding 12-month period. Properties measuring less than 50,000 square feet traded at a median price of $147 per square foot over the past year, the report said.
The report also said, among other things, that cap rates "can vary widely depending on property age, location and quality of tenancy." Generally, most assets without a grocery anchor must list at cap rates starting in the mid- to high-8%t range, the report said.
Marcus & Millichap forecasts that the recent surge in activity will continue to generate additional deals. "Newer properties with strong grocery anchors remain a primary target for large investors. Smaller investors will focus on strong locations and high-traffi c shadow anchors," the research report said.
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