IRVINE, Calif. – Faris Lee Investments, the nation’s largest retail-specialized investment advisory firm, has completed the $10.8 million sale of Willow Run Shopping Center located at 12900-12910 N. Zuni Street in Westminster, CO, a northwest suburb of Denver. Built in 2000 and situated on nearly 11 acres, the property was 80 percent leased at the close of escrow and includes grocery store anchor tenant, Safeway, as well as Allstate, Subway and neighborhood retailers. Other outlying tenants at the center that weren’t part of the sale included JPMorgan Chase, Conoco Philips, and McDonalds.
Richard Chichester, Jeff Conover, and Tom Chichester represented the seller, TNP SRT Willow Run, LLC from San Mateo, Calif. Shaun Riley of Faris Lee Investments represented the buyer, Denver-based Gart Investment Company. The closing cap rate on the property was 6.56 percent.
With strong surrounding demographics, a well-designed site plan, success of other nearby retail centers, and a good physical appearance with minimal deferred maintenance, Faris Lee’s market analysis of the property identified that the missing ingredient in turning the center around was a proactive owner and property manager with experience in the Colorado market.
“Faris Lee’s marketing strategy was to target local Colorado-based investors/owners who understood the immediate area. With a history of ownership in the Colorado market, Gart Investment Company was at the top of our list of investors we believed would see the value in the asset and proactively utilize its tenant and management relationships to fully maximize the investment,” said Conover.
“Willow Run offered the buyer a property well below replacement cost at a low price-per-square-foot of $118,” added Riley. “Additionally, the buyer appreciated the upside opportunity through leasing the 20 percent vacancy, creating potential for additional cash flow and added value.”
Willow Run Shopping Center is strategically located at the signalized, hard corner intersection of N. Zuni Street and W. 128th Avenue. There are more than 245,000 consumers and 67,500 daytime employees within a three-mile radius of the property. It is also near Home Depot, Kohl’s, Staples and Petco.