Value-Add Retail Center for Sale in NW Denver Suburb of Westminster

Monday, July 24, 2017

Update:  HFF announced the sale of this property on October 23, 2017. Click here to be taken to our Search Properties page to view current real estate investment sales listings.

Holliday Fenoglio Fowler, L.P. (HFF), along with RealINSIGHT Marketplace, is marketing for sale Brookhill Towne Center, a 99,142-square-foot retail center in Westminster, Colorado. Brookhill Towne Center is a single-building neighborhood center completed in 1989 that is 81.5 percent leased to three tenants, Fruehauf’s, Guiry’s and Dollar Tree. Brookhill Towne Center presents a unique opportunity to acquire a neighborhood center that spans 8.45 acres and provides investors upside through the leasing of vacant space.

Brookhill Towne Center is located on 8.45 acres at 6755 West 88th Avenue on the northeast corner of West 88th Avenue and Pierce Street in the Northwest retail submarket. Located in Westminster, the retail property for sale is less than one mile from a direct access point to U.S. 36, the main thoroughfare connecting Denver and Boulder. Brookhill Towne Center is also only one block east of Wadsworth Boulevard, a major north-south road running all the way from Chatfield Reservoir in southwest Littleton to Broomfield, a northwest suburb of Denver. This strategic location between two of metro Denver’s transportation arteries allows the center to benefit from a broad consumer base. 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 Brookhill Towne Center is less than $260,000. 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 affordability of the area, Westminster experienced a population increase of more than 12 percent between 2010 and 2017 with a projected additional 7.5 percent growth between 2017 and 2022. There are nearly 123,000 people and more than 49,000 households located within a three-mile radius of the Brookhill Towne Center. Additionally, household income within three miles is nearly $83,000, 17 percent higher than the Colorado average and nearly 24 percent higher than the national average. There has also been significant single-family and multi-family development in the area as of late, displaying the demand for housing in the area.

Anchored by Dollar Tree since 2001, the property has experienced substantial leasing activity as of late, as Guiry’s and Fruehauf’s have recently executed leases of 25,130 and 35,730 square feet, respectively. Dollar Tree’s commitment to the asset for more than a decade, as well as the recent ability to attract large, new tenants, demonstrates the desirability of the area and quality of the market.

Retail Center for Sale Investment Highlights

  • Value Add through Lease-Up:  Brookhill Towne Center is currently 81.5 percent leased with 18,317 square feet of vacant space available. Dollar Tree’s proven commitment to the asset coupled with the recent leases with Fruehauf’s and Guiry’s provide the retail property for sale stable anchors that will draw increased customer traffic as well as tenant interest. This stability will provide investors with a stable cash flow stream while leasing the remaining spaces.
  • Below Replacement Cost:  Brookhill Towne Center is being offered at a significant discount to replacement cost, providing investors an excellent basis on this acquisition that will provide the property a competitive advantage in the marketplace. Replacement cost for an asset similar to the property is approximately $200 per square foot.
  • Potential Redevelopment Opportunity:  The retail center is currently zoned PUD (Planned Unit Development), which permits multi-family, retail, office, residential, industrial and medical developments. Brookhill Towne Center’s strategic location adjacent to two of the main thoroughfares in metro Denver makes it suitable for a number of uses. The opportunity to work on obtaining government approvals while still collecting a consistent cash flow makes this an attractive redevelopment opportunity.
  • Recent Capital Improvements:  Three of the four roof sections were replaced in 2016 and carry an assumable warranty. The new roofs over the vacant spaces will aide Investor’s efforts to lease the available space at the property.

Investors will be able to bid on Brookhill Towne Center via RealINSIGHT Marketplace’s online auction site beginning on Monday, August 14, and ending on Wednesday, August 16. For more information on this commercial property for sale or other office properties for sale in the Denver area, please contact Jules Sherwood in HFF’s Denver office. For information on financing this acquisition, please contact Kristian Lichtenfels. 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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