In Q3 2013 CIRE acquired a 145,460 SF multi-tenant retail asset located on the northeast corner of East IIiiff Avenue and South Quebec Street in Denver, Colorado
CIRE acquired the asset from a dissolving family partnership at $69 per SF and a 10%+ cap rate, representing a significant discount to comparable sales in the Denver metro
The asset has not been professionally managed with expenses and recapture income not being reconciled correctly leading to a direct leakage to net income
Ownership’s aversion to fund tenant improvements to capture new prospective tenants and renew current tenants has led to an above market vacancy in the center along with lease rates that are nearly 20% below market
Opportunity to stabilize the asset through the retention/renewal of the existing tenant base and aggressive lease-up of remaining vacant suites utilizing reasonable tenant improvement and leasing commission budgets
Twenty-seven year old asset with minimal deferred maintenance—current ownership has invested approximately $1M within the last four years to address repair and maintenance issues relating to parking lots, facade, lighting, signage and structure
Immediate implementation of a local/regional rebranding campaign to introduce new ownership and reintroduce the asset to the marketplace
Roll-out of an aggressive hands-on leasing strategy offering quality retail product utilizing reasonable tenant improvement and leasing commission budgeted incentives
Implement CIRE’s best-in-class asset management practices including a complete audit and overhaul of property level operations to maximize efficiencies and reduce costs
Additional value enhancement or basis reduction strategy includes the potential to develop or sell off the additional two (2) undeveloped pads consisting of 1.15 and 0.63 acres respectively
Property Type:
Multi-tenant Retail
Sub-Market:
Denver, Colorado
Number of Bldgs:
Three (3)
SF / Acres:
145,460 SF / 13.68 acres
Year Built: 1986
Initial Occupancy: 76%
Current Occupancy: 83%