Denver Retail Property for Sale

Tuesday, September 5, 2017

Update: HFF announced the sale of this property on January 3, 2018. To view HFF's current available commercial properties on the market, please click here.

Holliday Fenoglio Fowler, L.P. (HFF), on behalf of the owner, is marketing Tamarac Shopping Center for sale. The retail property is a 68,534-square-foot, 100-percent-leased shopping center shadow anchored by a Target in Denver, Colorado. It consists of three single-tenant, net-lease assets and a 33,099-square-foot, Ace Hardware-anchored strip center. Leased to a variety of national tenants, including Chick-fil-A, Bank of the West and Benihana, the property presents an investor attractive in-place cash flow with near-term upside potential. Investors can acquire the four separately parceled assets as a whole or individually. 

Anchored by Ace Hardware, the strip center for sale is 100 percent leased to 12 tenants with a weighted average tenure of more than eight years, demonstrating the tenants’ commitment and success at the center. The hardware store anchor expands the customer draw to the overall shopping center, complementing the daily needs and restaurant users. The retail center received a brand-new façade in 2013 with the arrival of Target, minimizing capital needs to a new owner. Tamarac Shopping Center has a strong occupancy history, offering potential investors income security to complement the potential upside available due to below market rents, strong tenant sales volumes and a 2.4 percent vacancy rate in the immediate trade area. National retailers account for 82 percent of GLA and more than 75 percent of the gross rental revenue.

Situated on 7.21 acres at South Tamarac Drive and East Hampden Avenue, a heavily trafficked intersection experiencing more than 61,700 vehicles per day, Tamarac Shopping Center benefits from consumer traffic driven to the new Target, which in 2013 replaced an existing shopping center, reactivating the center’s draw as a retail destination.

Tamarac Shopping Center is being delivered “free and clear” of existing financing, presenting an investor with the opportunity to capitalize on historically-low interest rates, favorable market financing terms and enhanced leveraged returns.

Retail Property for Sale: Investment Highlights

  • Triple-Net-Lease Investment Opportunities Provide Long-Term Stability:  Tamarac Shopping Center offers investors the opportunity to acquire single-tenant net-leased opportunities, including Chick-fil-A’s corporate ground lease with 10-years of term remaining. Bank of the West, which has been a tenant since 1975, is on a significantly below-market ground lease with more than $75 million in deposits and three 10-year contractual options. Benihana has been a tenant for more than 40 years with term through 2021 and no options remaining.
  • Individually Parceled Pads:  Well-located fast food and bank pads are highly sought after in the net-lease investment market. All four buildings at Tamarac Shopping Center are situated on separate tax parcels, which provides investors with the flexibility to sell off the Chick-fil-A, Bank of the West and Benihana pads separately at accretive cap rates in order to lower their overall basis.
  • Near-Term Value Add Through New Lease Negotiation:  The high-performing Benihana has been a tenant at the center since 1976 and has a lease expiration of 2021 with no remaining options. Strong sales volume, coupled with limited availability to relocate and a motivated operator, allows a new investor the opportunity to negotiate a new, long-term lease with an increased contractual rent structure while maintaining a healthy occupancy cost ratio.
  • Strong Demographics and Affluent Trade Area:   Tamarac Shopping Center benefits from exceptional demographics with average incomes more than $93,300 and a population of more than 378,200 within a five-mile radius. The surrounding trade area boasts robust demographics due to the area’s exceptional employment base, attractive amenities and a highly educated workforce.

Tamarac Shopping Center offers investors a Target (with grocery) shadow-anchored shopping center in a densely populated, high-growth submarket in the heart of Denver. Consisting of national tenants and shared access with the new Target, the future owner will enjoy stable cash flow and increasing retail demand in the area. For more information on this commercial property for sale or other retail properties for sale in the Denver area, please contact Chad Murray, Mark Williford or Bryan Ley. For information on financing this acquisition, please contact Leon McBroom. 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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