By Margaret Jackson / NewsBreak Denver
(Colorado Springs, Colo.) A New York City investor paid $12.15 million for Erindale Square, a 103,552-square-foot open-air retail center in Colorado Springs.
The shopping center sits on a 6.93-acre parcel at 5881-5975 N. Academy Blvd. — one of the state’s most heavily trafficked retail corridors with about 47,600 vehicles per day. Major tenants include Fodor Billiards, Bill’s Bed and Appliances, Cutting Edge Realtors, HomeFix and The Door Christian Center.
Additional parking is located behind the property, including 0.55 acres of undeveloped land zoned for business. Erindale Square was 90% leased at the time of the sale, with 10,657 square feet available for lease.
“Erindale Square offered investors the opportunity to acquire a prominent neighborhood retail center at well below replacement cost with strong value enhancement potential,” said CBRE Vice President Parker Brown, who, along with Matthew Henrichs and Brad Lyons, represented the Los Angeles-based investor selling the property.
“The property attracted significant offer activity from dozens of value-oriented investors across the country. Colorado Springs is squarely on the radar for investors nationwide across the capital spectrum who recognize the top-tier growth potential offered in the market.”
Open-air, non-grocery-anchored retail properties offer some of the best risk-adjusted returns in commercial real estate, according to recent CBRE research. The outlook is supported by rising brick-and-mortar retail sales, a lack of new supply coming on the market, and the slowing of e-commerce sales growth.