Banking on the Strength of Retail Market in Boulder, JLL Lines Up $26.7M Loan on Retail Complex

JLL Capital Markets announced that it had arranged a $26.7 million refinancing for a Boulder, Colorado shopping center anchored by a Safeway grocery store.

The deal announced Thursday will allow a partnership managed by Jacksonville, Florida-based real estate investment trust Regency Centers Corporation to land a 10-year, fixed-rate loan for Alcove on Arapahoe, a 159,050-square-foot center anchored by Safeway. The property, which also includes HomeGoods, Verizon Wireless and Flower Child as tennants, sits one block from the University of Colorado at Boulder, which normally has a student population of about 35,000. 

JLL Capital Markets Senior Director Tarik Bateh, who led the debt placement team alongside  colleague Kristian Lichtenfels and associate Jennifer Swanson, says the market “continues to attract core real estate investment capital.”

“The city is seen as one of the most sought-after submarkets of the broader Denver Metro area with great core characteristics: high barriers to development, affluent demographics, a highly educated workforce and broad base of employment industries including tech, aerospace, engineering and healthcare companies as well as the University of Colorado,” Bateh said.

The property, built in 1957 and renovated in 2019, sits at 2798 Arapahoe Avenue at the corner of Denver-Boulder Turnpike, a location that draws a total of 84,000 vehicles per day. More than 96,000 people live within three miles of the center and the average annual household income in the area is $104,000.

“Despite current market volatility due to COVID-19, the capital markets remain open for business and Alcove on Arapahoe garnered significant lender interest,” said Bateh, whose team placed the loan with Nationwide. “Regency’s best-in-class operating team and long-term commitment to the property created conviction around the asset’s durability. Nationwide distinguished themselves via their own long track record of retail lending and provided a seamless execution during otherwise turbulent times,” Bateh said.