Southglenn Square 7562 S University Blvd, Centennial, CO 80122 $9,891,000 6.36% PRICE CAP RATE
SOUTHGLENN SQUARE
Confidential Offering Memorandum 7562 S UNIVERSITY BLVD, CENTENNIAL, CO 1 Executive Summary SouthGlenn Square 7562 S University Blvd, Centennial, CO 80122 $9,891,000 6.36% PRICE CAP RATE
LEASABLE SF NOI OCCUPANCY 61,487 SF $629,178 88.3%
PRICE PSF YEAR BUILT SURFACE PARKING $161 1984 209 SPACES • Excellent demographics in 3 mile radius: $133,000 median household income, 5% population growth, and 100,000 population • 23.44% IRR at market occupancy (5 year pro forma). • Add value via lease-up of existing 12% vacancy (no lower level vacancy), sub-market vacancy is 4.2%. • Street level in-place rents are below market, sub-market average rent is $21/SF NNN. • Long term low interest rate debt available. • $161 price per square foot is well below replacement cost. The low-cost basis, and irreplaceable location create an opportunity for long term appreciation. • Dynamic retail location. Located just south of Dry Creek Rd (23,261 VPD) and University Blvd (32,578 VPD). • Lower level service tenants have convenient access, abundant parking, and very low average in-place rents of $7.17/SF NNN. • High performing recently renovated King Soopers located directly across University Blvd, in-line rents are $32-$36/SF NNN • SouthGlenn Square Layout: • Pad retail: $34/SF NNN | 4,731 SF (24% vacant) • Street level retail: $11/SF NNN | 30,073 SF (18% vacant) • Lower level service retail: $7/SF NNN | 26,683 SF (2% vacant) 2 Investment Overview INVESTMENT CONTACTS:
The Offering Blue West Capital is pleased to present the sale of SouthGlenn Square, a 61,487 SF multi-level retail center located at the busy intersection of S. University Blvd and E. Dry Creek Rd, in Centennial, Colorado.
The Subject Property SouthGlenn Square is located at 7562-7592 S. University Blvd, Centennial, CO 80122. Strategically located directly across S. University Blvd from a King Soopers anchored center and nearby Arapahoe High School and Shepherd of the Hill Lutheran Church School. Unique to its surrounding competition, Southglenn offers Tom Ethington - Lead 26,106 SF of service use retail which allows tenants to be in a desirable central spot Managing Partner without the high occupancy cost, the lowest tenant is currently paying $3.13 SF. Investment Sales 720.966.1624 Centennial, CO is a suburb of Denver with a population of 108,448. Centennial is [email protected] continually ranked as one of the best places to live in Colorado. Living in Centennial offers residents a suburban feel with lot of restaurants, coffee shops, and parks as well as a close commute to the Denver Tech Center or Downtown Denver job market. The Robert Edwards public schools in Centennial are highly rated and a major draw to home ownership. Managing Partner The median household income in Centennial is $100,770, a 4.51% growth from the year Investment Sales prior. 720.966.1630 [email protected]
Zach Wright Director Net Lease Investment Sales 720.966.1628 [email protected]
Brandon Gayeski Associate Investment Sales 720.966.1627 [email protected]
Shawn Dickmann Analyst Investment Sales 720.828.8310 [email protected]
3 Property Photos
4 Property Photos
5 Property Information
PROPERTY OVERVIEW PROPERTY ADDRESS 7562 South University Blvd Centennial, CO 80122 RBA 61,487 SF
YEAR BUILT 1984
LAND SIZE 4.01 Acres
ZONING Activity Center
PARKING 208 spaces (3.57 / 1,000 SF) SIZE 61,487 SF
OCCUPANCY 88.3% CORE & SHELL DESCRIPTION FOUNDATION Poured, Reinforced Concrete NUMBER OF TENANTS CONSTRUCTION C-Masonry or Concrete 16 Tenants Load-Bearing Walls ROOF Flat PRICE Rubber Membrane $9,891,000
CAP RATE (CURRENT) 6.36%
6 Site Plan - Street Level Retail and Pad Retail
UNIT M/N UNIT L1/L2 THOMPSON THOMPSON UNIT K DESIGN DESIGN FLYING DRAGON
UNIT J DR. TERRY TEDFORD UNIT I CLAUSEN NEW VISIONS UNIT H FANTASTIC SAMS UNIT G MAYFAIR CLEANERS UNIT F BRAZILIAN WAXING UNIT E J NAILS UNIT D EDWARD JONES
UNIT C AVAILABLE UNIT B HIGHLANDS FAMILY CHIROPRACTOR
UNIT A PAD 1 PAD 2 AVAILABLE FUZZY’S TACO SHOP AVAILABLE
7 Site Plan - Lower Level Service Retail
UNIT CC VACANT UNIT JJ STORAGE KIDS WONDER STORAGE
UNIT GG KIDS WONDER
UNIT AA2 FAITH LIFE FELLOWSHIP
UNIT AA1 COLORFUL YARN (LOI)
UNIT BB CHILDREN’S MUSIC
8 Aerial - North Facing
STREETS AT SOUTHGLENN
CHERRY KNOLLS SHOPPING CENTER
ARAPAHOE HIGH SCHOOL (2,262 STUDENTS)
DRY CREEK RD 23,261 VPD
32,578 VPD
UNIVERSITY BLVD SOUTHGLENN SQUARE
9 Aerial - West Facing
10 Aerial - East Facing
11 Aerial & Demographics S BROADWAY ORCHARD RD CHERRY HILLS MARKETPLACE
TOTAL POPULATIONPOPULATION RESIDENTIAL COUNT STREETSAVERAGE AT SOUTHGLENN HH INCOME 1 mile 15,496 3 miles 108,485 CHERRY KNOLLS SHOPPING CENTER ARAPAHOE RD
5 miles 279,418 UNIVERSITY BLVD COLORADO BLVD
POPULATION RESIDENTIAL COUNT AVERAGE HH INCOME TOTAL HOUSEHOLDS DRY CREEK CENTER 1 mile 6,396 3 miles 43,130
ARAPAHOE HOLLY ST 5 miles 112,079 LITTLETON HIGH VILLAGE SCHOOL REDEVELOPMENT DRY CREEK RD CHERRYWOOD SQUARE
POPULATION RESIDENTIAL COUNT AVERAGE HH INCOME AVERAGE HH INCOME 1 mile $126,235 3 miles $133,324 5 miles $136,056
SOUTHGLENN SQUARE
12 Map
7592 South University Blvd Centennial, CO 80122 13 Area Overview
Centennial, CO is continually ranked as one of the best places to live in Colorado. Living in Centennial offers residents a suburban feel with lot of restaurants, coffee shops, and parks as well as a close commute to the Denver Tech Center or Downtown Denver job markets. The public schools TOP 10 EMPLOYERS in Centennial are highly rated and a major draw to home ownership. The 1. Comcast median household income in Centennial is $100,770, a 4.51% growth from the year prior. The City’s landscape boasts extensive open spaces, scenic 2. Arrow Electronics mountain vistas, native wildlife, and connections to some of the region’s 3. United Launch Alliance most impressive trail networks and recreational amenities. Through its first 4. Oppenheimer Funds 17 years, the City has transformed from a collection of neighborhoods into 5. United Healthcare an award-winning community with exceptional educational, employment, 6. Nordstrom TOP 10 RETAIL SALES TAX commercial, and recreational opportunities. The barriers to entry for new 7. Sierra Nevada Corporation commercial development in the community are extremely high. 8. Zillow Group PRODUCERS OF 2017 9. Travelport 1. IKEA 10. S&P Global 2. Xcel Energy MOST BEST CITY IN 3. Worldwide Technology, Inc. FAMILY-FRIENDLY COLORADO FOR FIRST-TIME 4. Walmart CITY IN COLORADO HOMEBUYERS 5. Amazon
Apartment List NerdWallet 6. Topgolf 2017 2017 7. AutoNation Toyota 8. Verizon Wireless 9. Best Buy ONE OF THE BEST NO. 2 ON THE PLACES TO MOVE “50 BEST CITIES 10. REI OR OPEN A BUSINESS TO LIVE” List
Best of Colorado 24/7 Wall Street Business Choice Awards 2017 2017 2ND HEALTHIEST HOUSING MARKET IN COLORADO
SmartAsset 2017
14 Income & Expense
CURRENT Price $9,891,000 Capitalization Rate 6.36% Price Per Square Foot $160.86 Total Leased (SF) 88.3% 54,297 SF Total Vacant (SF) 11.7% 7,190 SF Total Rentable Area (SF) 61,487 SF INCOME PER SQUARE FOOT AS-IS Scheduled Rent $10.40 $639,643 Expense Reimbursement $4.72 $290,063 Cell Tower $0.45 $27,708 POTENTIAL GROSS REVENUE General Vacancy - - EFFECTIVE GROSS INCOME $957,414
EXPENSES AS-IS CAM ($146,119) Insurance ($15,479) Property Taxes ($137,406) Management Fee ($37,188) TOTAL OPERATING EXPENSES ($328,236)
NET OPERATING INCOME $629,178
15 Anchor Tenant Mix
HIGHLANDS FAMILY CHIROPRACTOR Dr. Andrew Hicks and Dr. Anthony Bos at the Highlands Family Chiropractic Cen- ter have been working for over a decade to treat patient’s pain. The Highlands Family Chiropractic Center provide evidence-based chiropractic care treating neck and back pain, chronic fatigue, headaches, spinal misalignment, and more. https://www.highlandsfamilychiropractic.com Tenant Since: 2015
EDWARD JONES Edward D Jones is a financial services firm that operates out of more than 14,000 locations in the US and Canada. Working with clients since 1995, Edward Jones has grown to have nearly 7 million clients and $1 trillion dollars in assets under management worldwide. https://www.edwardjones.com Tenant Since: 1998
FANTASTIC SAMS Fantastic Sams has become one of the worlds largest full services hair-care sa- lons with over almost 1,000 locations in the US and Canada. https://www.fantasticsams.com Tenant Since: 1988
KIDS WONDER Kids Wonder is South Denver Metro’s only intentional play center dedicated to the physical, intellectual, social and emotional development of children ages 0-8 years. https://www.kidswonder.net Tenant Since: 2018
FUZZY’S TACO Since opening the doors of the original Fuzzy’s Taco Shop in Fort Worth, Texas in 2003, The Fuzzy’s Taco Shop name has spread across the country with over 100 storefronts to date. Fuzzy’s one of a kind food and festive love keeps customers coming back in time and time again. https://www.fuzzystacoshop.com Tenant Since: 2018
CHILDREN’S MUSIC ACADEMY The Children’s Music Academy (CMA) offers music lessons for young children with the hope of developing a strong musical foundation and building essential like skills. https://childrensmusicacademy.org Tenant Since: 1997
22 Rent SUBJECT PROPERTY: SOUTHGLENN SQUARE Comparables Address: 7592 S University Blvd Year Built: 1984
High Low
NNN Rent $34.00 $3.13 Range): 1 Lease Size 3,908 SF 1,131 SF Range): Tenants: Fuzzy’s Taco, Edward Jones, Highlands Family Chiropractor
UNIVERSITY BLVD 3
SUBJECT 4 2 DRY CREEK RD CREEK DRY
PROPERTY 1: PROPERTY 2: PROPERTY 3: PROPERTY 4: CHERRYWOOD SQUARE DRY CREEK CENTER DRY CREEK CENTER (FRONT SPACE) UNIVERSITY TOWNE CENTER Address: 7575 South University Blvd Address: 7500 South University Blvd Address: 7530 South University Blvd Address: 7408-7422 South University Blvd Centennial, CO Centennial, CO Centennial, CO Centennial, CO Year Built: 1978 Year Built: 1987 Year Built: 2013 Year Built: 1982
High Low High Low High Low High Low
NNN Rent $37.00 $33.00 NNN Rent $30.00 $22.96 NNN Rent $30.00 $30.00 NNN Rent $27.00 $22.00 Range): Range): Range): Range): Lease Size 1,930 SF 1,200 SF Lease Size 1,320 SF 1,200 SF Lease Size 1,175 SF 1,145 SF Lease Size NA NA Range): Range): Range): Range): Tenants: Starbucks, Einstein Bagels, Tenants: Dry Creek Liquors, Tedford Den- Tenants: Larkburger, Jimmy John’s, Tenants: Supplement Giant, Subway, YogurtLand, Tailor Cleaners tal, Allstate, & Pro-Vision Eyecare Max Muscle, & Cake Heads Papa Murphy’s Pizza, AAA 23 Disclaimer
This confidential Offering Memorandum has been prepared by Blue West Capital, LLC (“Blue West Capital”) for use by a limited number of qualified parties. This Offering Memorandum has been provided to you at your request based upon your assurances that you are a knowledgeable and sophisticated investor in commercial real estate projects and developments. Blue West Capital recommends you, as a potential buyer/investor, should perform your own independent examination and inspection of the property described herein as South- glenn Square (the “Property”) and of all of the information provided herein related to the Property. By accepting this Offering Memorandum, you acknowledge and agree that you shall rely solely upon your own examination and investigation of the Property and you shall not rely on any statements made in this Offering Memorandum or upon any other materials, statements or information provided by Blue West Capital or its brokers.
Blue West Capital makes no guarantee, warranty or representation about the completeness or accuracy of the information set forth in this Offering Memorandum. You are responsible to independently verify its accuracy and completeness. Blue West Capital has prepared the information concerning the Property based upon assumptions relating to the general economy, its knowledge of other similar properties in the market, and on other market assumptions including factors beyond the control of the Blue West Capital and the Owner of the Property. Blue West Capital makes no representation or warranty as to either the accuracy or completeness of the information contained herein, and the information set forth in this Offering Memorandum is not intended to be a promise or representation as to the future performance of the Property. Although the information con- tained herein is believed to be accurate, Blue West Capital and the Property Owner disclaim any responsibility or liability for any inaccuracies. Further, Blue West Capital and the Property Owner disclaim any and all liability for any express or implied representations and warranties contained in, or for any omissions from, the Offering Memorandum and for any other written or oral communication transmitted or made available to you. Blue West Capital shall make available to you, as a qualified prospective investor, additional information concerning the Property and an opportunity to inspect the Property upon written request.
This Offering Memorandum and the contents are intended to remain confidential except for such information which is in the public domain or is otherwise available to the public. By accepting this Offering Memorandum, you agree that you will hold and treat Offering Memorandum in the strictest confidence, that you will not photo- copy or duplicate it, or distribute it. You agree you will not disclose this Offering Memorandum or its contents to any other person or entity, except to outside advisors retained by you and from whom you have obtained an agreement of confidentiality, without the prior written authorization of Blue West Capital. You agree that you will use the information in this Offering Memorandum for the sole purpose of evaluating your interest in the Property. If you determine you have no interest in the property, kindly return the Offering Memorandum to Blue West Capital at your earliest convenience.
24 720.989.1031 400 S Colorado Blvd, Suite 420, Denver, CO 80246 BLUEWESTCAPITAL.COM
Tom Ethington Robert Edwards Zach Wright Brandon Gayeski Shawn Dickmann Managing Partner Managing Partner Director Associate Analyst Investment Sales Investment Sales Net Lease Investment Sales Investment Sales Investment Sales 720.966.1624 720.966.1630 720.966.1628 720.966.1627 720.828.8310 [email protected] [email protected] [email protected] [email protected] [email protected] 25