Alto Real Estate Funds found a foothold in Denver with its purchase of Quebec Square.
The buyer paid $42.25 million for the 207,611-square-foot retail power center at 7506 E. 36th Ave. in Denver.
“Quebec Square is a huge win for our fund to get a foothold in the Denver market, one of the fastest growing and most desirable areas in the U.S.,” Yaniv Melamud, CEO and co-founder of Alto Real Estate Funds, said in a release regarding the purchase. “With an irreplaceable location, limited competition and dominant anchors, the asset is generating strong cash flow from Day One with the potential to add value over time through lease-up of vacant suites and improvement of the tenant mix. The asset is shadow-anchored by Home Depot and Walmart, both generating high sales volumes and traffic, and will assist to maintain the center’s position in the market and increase tenants’ demand for space.”
“Quebec Square is an institutional-quality power center combining an infill, transit-oriented location with national brand name retail tenancy designed to meet both the destination and daily retail needs of the fast-growing, surrounding community,” said Brad Lyons of CBRE Capital Markets, National Retail Partners. “It’s just great real estate.”
Lyons, along with CBRE’s Mike Winn and Tim Richey, represented the seller, InvenTrust Properties Corp. of Illinois.
Built in 2002, Quebec Square is situated on 22.07 acres in the master-planned Stapleton community. It comprises eight multitenant buildings and three single-tenant pad buildings, which are home to more than 40 tenants, including Ross Dress For Less, Office Depot, PetSmart, Big 5 Sporting Goods, Famous Footwear and Party City.
In addition to its junior box tenants, Quebec Square also includes a mix of service retailers and restaurants like GNC, Great Clips, The UPS Store, Smashburger, Panera Bread, McDonald’s and Buffalo Wild Wings.
“It is just great real estate in the heart of the Stapleton development,” added Lyons, noting the sought-after center saw significant interest and multiple offers.
At the time of sale, Quebec Square was 91% leased. Quebec Square is part of a larger shopping center, which includes Home Depot, Walmart and Sam’s Club.
Goldman Sachs funded the acquisition of Quebec Square with a $28 million, seven-year term loan at a fixed interest rate. Walker & Dunlop’s Los Angeles Capital Markets Team secured the debt on behalf of Alto Real Estate Funds.
The transaction represents Alto Real Estate Funds’ first acquisition in the Denver market.