March 4, 2013
A commercial real estate company sold a Louisville retail center for $3.4 million after nearly doubling the occupancy over the last four years.
Denver-based Matrix Group, Inc., sold the Village Shops at Colony Square II to JKW 1031 Louisville LLC, a local partnership.
The center was 88 percent leased, compared with 45 percent when Matrix Group purchased it from a financial institution in early 2009. Matrix, which paid $2.28 million, brought the center’s level of leasing to 75 percent almost immediately after it bough the property and continued to build on occupancy.
The Village Shops at Colony Square II is a 29,414-square-foot retail center that consists of three buildings built at 1132, 1148 and 1156 W. Dillon Road in 2000. Tenants include Premier Members Federal Credit Union, Parma Tralloria & Mozzarella Bar, H&R Block, Hana Japanese Bistro, State Farm Insurance and others.
An offer for the retail center was received with the first week of the property being listed, said Matrix Group President John Webb. In all, there were five or six offers, according to Newmark Grubb Knight Frank broker Dan Grooters, who represented the seller with Riki Hashimoto, also of Newmark Grubb Knight Frank.
“We had really good activity on it. The real lure of it is that it was leased up at the bottom of the market, and all the rents had been set to the low,” said Grooters. “As the market improves, they will be able to push those rents.”
“I think that the buyer got a nice deal, and we were happy to sell it. We had owned it for four years,” said Webb.
One of the partners in the buying group traded into the property as part of a 1031 exchange. Bellco Credit Union provided a load for the acquisition that offered “excellent terms,” according to Grooters.
“It’s good to see strong financing is available for B retail assets,” he said. “A year ago, it would have been tough to get it done with that type of loan.”
Prior to selling the Village Shops at Colony Square II, Matrix Group bought the 12,063-sf Union Walk Retail Center at 180 S. Union Blvd, in Lakewood from Bank of America for $2.8 million, or $232.69 per sf. The center was 60 percent occupied at the time of the sale. The previous recorded price, in 2007, was $6.55 million, or $562 per sf. Occupancy at that time was 82 percent.
Current tenants include Jimmy John’s, Panda Express, Floyd’s 99 Barbershop and Bruegger’s Bagels.
“We look at it as a great asset in a really tight corridor,” said Webb.
Matrix Group is a full-service commercial real estate firm that owns and manages 1.1 million sf of office, industrial and retail property in the Denver area.