Patrick Kerscher, a principal broker with Landmark Commercial Real Estate, closed a rare deal earlier this week when he sold a multi-tenant retail building at Research and Union boulevards.
The 10,700-square-foot space sold for $2.45 million.
That was a fair price for seller and buyer, said Tucker Manion, a broker with Centre Point Properties in Denver who represented the buyer.
The buyer sold a multi-tenant property in west Denver and needed to reinvest in another property to avoid capital gains taxes. Manion said there is limited inventory of healthy mukti-tenant retail space in Denver.
“What was important for us was finding a grocery-anchored neighborhood center,” Manion said.
And they didn’t find what they were looking for up north and began looking down the Front Range, he said.
“This is a big check in the optimism column,” Kerscher said.
The market for multi-tenant retail has been nonexistent through the recession, he said. Most of the deals he’s brokers have been single-tenant spaces, especially with tenants like dollar stores and value menu restaurants.
“For someone to actually buy a multi-tenant building means there’s some confidence returning to the market,” Kerscher said. “Hopefully we’ll see a lot more of this.”
There’s a lot of institutional money that has been sitting idle while Real Estate Investment Trust managers and other major players have been afraid to dive into the market. A sale like this one suggests to Kerscher that it’s only a matter of time before that money starts moving again. And, he said, he’s hopeful some of it will land in Colorado Springs.
“This woman picked this deal out of all the deals in the state,” he said.
Manion said multi-tenant retail spaces have been selling in Denver and the market there is picking up momentum.