Mixed-Use Retail and Office Building for Sale in Denver MSA

Monday, February 4, 2019

Holliday Fenoglio Fowler, L.P. (HFF), on behalf of the owner, is marketing a 21,971-square-foot mixed-use retail and office property for sale in the Denver-area suburb of Lakewood, Colorado. Catering to a deep executive housing base and situated along the bustling Union Boulevard Corridor in West Denver, Union One offers all the attributes desired by both retail and office tenants. At 86 percent leased, the retail and office property for sale offers investors value-add potential and increasing cash flows with a diverse tenant mix that includes food and beverage, service retail, medical, education and national service provider offices.

Union One is situated on 1.49 acres at 195 South Union Boulevard. It is located just blocks from the two dominant economic drivers in the submarket, Centura Health’s St. Anthony Hospital and the Denver Federal Center, which houses the largest concentration of federal employees outside of Washington, D.C. With the Federal Center light rail station a half-mile away and immediacy to King Soopers, the No. 1 grocer in the Metro Denver market, Union One is in the heart of the most dynamic trade area in the Denver West submarket.

The retail and office property is located in close proximity to some of the most exclusive and expensive housing in the Metro area, including Lakewood, Golden, Ken Caryl, Evergreen and Morrison. This executive housing base results in superior demographics as compared to the Greater Denver area, driving retail and office demand and making the West submarket the most stable in the Metro area. These affluent residents choose West Denver for its convenient access to the mountain outdoors and to avoid the congestion of Downtown Denver.

Retail and Office Building for Sale Investment Highlights

  • High-Yielding Asset with Favorable Basis:  Union One represents a rare opportunity to acquire a strategically located in-fill, value-add, mixed-use property priced at a fraction of replacement cost and offering high-yielding returns. The nature of the leases in place provides tremendous upside for future ownership as they create a low basis in an environment of escalating construction costs. With occupancy at 86 percent and rising rates demonstrated in recent leasing, Union One is a premier value-add retail investment opportunity. These factors afford future ownership the flexibility to push lease rates and occupancy and maintain a stable cash flow well into the future. Additionally, the property is in excellent condition. The parking lot has recently been replaced and there are currently no other immediate capital needs at the property. An investor would have little need for additional capital reserves over the hold period.
  • Small-Office Alternative to Larger Multi-Tenant Towers in the Area:  West Denver’s expansive office market, especially along the Union Boulevard corridor, is dominated by several large office towers with numerous tenants. Inherent in that profile is a lack of privacy and easy access. Union One finds itself in a fantastic office market, but with a unique story that can set the asset apart from competitors. Union One offers an accessible, private, small-office alternative to the booming large-scale competitors in the market, perfect for small businesses or satellite offices of national firms.
  • Union Boulevard Corridor Historical High Tenant Occupancy:  Union One benefits from its premier location along the infill Union Boulevard corridor, the main north-south thoroughfare in the West Denver submarket. The area has consistently experienced higher occupancy rates than Denver’s other suburban office and retail submarkets.
  • Excellent Daytime Traffic and Growing Residential Base:  As a result of the Federal Center development, the light rail expansion into West Denver, and its proximity to the foothills, the area has become a popular live-work-play alternative to the CBD and Denver Tech Center. There are more than 40,000 households and 9.6 million square feet of office space within three miles of Union One, with a daytime population over 73,000. Union Boulevard itself sees more than 42,000 vehicles per day, which provides spectacular visibility to Union One.
  • Small Tenant Nature Provides Diverse and Secure Cash Flow:  EdCor, the office anchor at Union One, just renewed its lease for an additional five years. No other office tenant makes up more than 15 percent of the office GLA. Westrail Tap & Grill occupies 56 percent of the retail GLA, but the three other suites divide the remaining retail space equally. Neither of these anchors take up more than 33 percent of the total GLA and all other tenants are under 10 percent. All told, this ideal mix of office and retail tenancy and diversity in the rent roll mitigates and future risk in the asset.

For more information on this retail and office property for sale or other available retail, office and mixed-use properties available for sale in Colorado, please contact Jason Schmidt or Chad Murray or visit the property’s listing page, where you can download a CA. Click here for to view our real estate investment sales search page to see all of the available commercial properties for sale.

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