Mixed-Use Retail and Office Building for Sale in Broomfield, Colorado

Tuesday, August 22, 2017

Holliday Fenoglio Fowler, L.P. (HFF), on behalf of the owner, is marketing MainStreet at FlatIron, a 93,657-square-foot mixed-use center consisting of two multi-tenant buildings with 59,224 square feet of office and 34,433 square feet of retail space in Broomfield, Colorado. MainStreet at FlatIron is an exceptional value-add opportunity for commercial real estate investors that is currently 56.3 percent leased to 10 tenants.

MainStreet at FlatIron is an attractive option to office tenants desiring quality space, a coveted location in Broomfield, excellent access to amenities, a super-regional shopping mall, numerous hospitality offerings, both single family and multifamily residential communities and proximity to the U.S. 36 Creative Corridor while offering competitive rental rates compared to many of the nearby competitors.

The two-building property is situated on 3.18 acres at 520 Zang Street and 549 Flatiron Boulevard adjacent to the 6.5-million-square-foot Interlocken Business Park, the premier employment center between downtown Denver and Boulder and home to the Colorado operations of four Fortune 500 companies: Ball Corporation, Level 3, Vail Resorts and Oracle. MainStreet at FlatIron is located within walking distance to more than 2 million square feet of retailers, 986 hotels rooms and entertainment options anchored by Flatiron Crossing shopping center. This 1.43 million-square-foot regional shopping center is anchored by Nordstrom, Macy’s, Dillard’s, Dick’s Sporting Goods and AMC Theaters and is the third largest shopping mall in metro Denver. 

This location is also appealing due to the significant population growth the area has experienced. While average home prices in Boulder exceed $1 million, the median home price within three miles of MainStreet at FlatIron is less than $363,000. This has attracted numerous people to the area who want to experience the lifestyle Boulder offers but cannot afford the cost of living. Due to the affability of the area, Broomfield experienced a population increase of more than 20.1 percent between 2010 and 2017 with an additional 9.9 percent growth forecast between 2017 and 2022.

MainStreet at FlatIron presents an outstanding value-add opportunity to acquire a mixed-use office and retail center located in a strong submarket with significant upside through the lease-up of vacant space. A long-term lease extension with expansion space was recently signed with rapidly growing fast-casual restaurant chain, Noodles & Company (Nasdaq: NDLS), which made MainStreet at FiatIron its corporate headquarters.

Office Property for Sale Investment Highlights

  • Ease of Access:  MainStreet at FlatIron is strategically located in the FlatIron district less than one mile from U.S. 36, the main thoroughfare connecting Denver and Boulder with more than 93,000 vehicles per day. The property is situated off of the Interlocken Loop exit, which acts as the main arterial into FlatIron Crossing and Interlocken Business Park with more than 24,000 vehicles per day. The Flatiron Flyer bus provides access to the property with a stop directly northeast of MainStreet at FlatIron less than one mile away. The Flatiron Flyer bus route affords direct connectivity to and from Union Station in Denver to downtown Boulder. The FlatIron District is also located within the Transit-Oriented District (TOD) with a future light rail station proposed within walking distance.
  • Competitive Market Fundamentals:  MainStreet at FlatIron offers lower asking rental rates compared to its peer set that charges on average $5 to $8 per square foot more in asking rental rates. This greatly appeals to the cost-conscious office tenants looking for high-quality office space in a premier location with reasonably priced rental rates and immediate access to amenities.
  • Value-Add through Lease-Up:  The property is currently 56.3 percent leased with 22,495 square feet of vacant office space and 18,442 square of vacant retail space available. At this level of occupancy, incremental leasing success will significantly impact returns. Noodles & Company’s proven commitment to the asset, CorePower Yoga’s recent expansion and the property’s diverse tenant mix of office, retail and service uses will provide investors with a stable cash flow stream while leasing the remaining spaces.
  • Offered Below Replacement Cost:  MainStreet at Flatiron is an REO property that is being offered at a significant discount to replacement cost, providing investors an excellent basis on this acquisition that will lock-in a competitive advantage in the marketplace for the retail and office property. Replacement cost for an asset similar to the property is currently well north of $200 per square foot.

Investors may submit offers on this mixed-use property for sale through Ten-X’s website beginning September 25 and ending September 27. For more information on this commercial property for sale or other other and retail properties for sale in the Denver area, please contact Jules Sherwood in HFF’s Denver office. To view HFF’s current real estate investment listings, please click here to be directed to HFF’s property search page.

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