Colorado Real Estate Journal – by Jill Jamieson-Nichols
February 18-March 3, 2009
A Louisville retail center that was in foreclosure and struggling has a new owner that is boosting occupancy.
The Matrix Group bought the Village Shops at Colony Square for $2.28 million cash – less than $80 per square foot. Only 9 years old, the center at 1132, 1148 and 1156 Dillon Road was 45 percent occupied at the time of the sale.
“It’s our kind of asset in terms of value-add, a great location, great demographics. It just suffered from the overleveraged mortgage it had,” said Matrix Group President John Webb, whose company picked up the asset at 50 percent of the value of the previous mortgage.
The Matrix Group, which closed on the property 20 days after putting it under contract, quickly signed leases with a medical user and Indian restaurant , bringing occupancy to 75 percent. Webb was meeting with more prospects at press time. Existing tenants include H&R Block, Double D’s Sourdough Pizza, Fringe Hair Studio and Premier Members Federal Credit Union.
Capmark Financial was the seller.
“Their main goal was to sell the property,” said CB Richard Ellis broker Brad Lyons. “I think it will be a great opportunity for the Matrix Group. They got it for a good price and hopefully they’ll be able to stabilize the asset over time,” said Lyons, who represented Capmark with CBRE brokers Geoff Baukol and Chris Bodnar.
The Village Shops at Colony Square consists of three multi-tenant retail buildings that total 28,534 square feet on 2.9 acres of U.S. Highway 36 and McCaslin Boulevard. It was the place to be for national tenants when it was building in 2000; but when Superior Marketplace opened across the Denver-Boulder turnpike, with anchors Costco and Super Target, some of its national tenants departed.
The Matrix Group is going after destination-type local and regional tenants, including retail, medical and dental users, at lower-than-average lease rates. It also has availability for a restaurant. “we’re offering very attractive rates for the restaurant business,” said Webb. “The long-term play,” he added, is ConocoPhillips a mile away.” The Matrix Group, which owns and manages 850,000 SF in the Denver market, recently purchased a central Denver industrial building and is actively looking for office, industrial and retail properties. “There are a few owners that are willing to discount their assets, I think, to today’s reality,” Webb said. “We know the next couple of years are going to be tough,” he said. “Yet, we are very bullish on Denver over the next three to ten years.”