A real estate company is prepped to create value with its first Colorado acquisition.
PREP Property Group Inc., a vertically integrated real estate company focused on creating value in retail real estate, purchased the Aurora City Place regional shopping center.
It purchased the 356,305-square-foot center at Interstate 225 and East Alameda Avenue in Aurora for $51.4 million, according to public records, for the PREP strategic investments portfolio. The center was sold by Weingarten Realty and GDC Properties, under the names Weingarten/Miller/Aurora II LLC and GDC Aurora LLC.
Aurora City Place is home to tenants including Target, Ross Dress for Less, Michaels, PetSmart, Party City, Conn’s and Barnes & Noble, in addition to several other national and regional tenants.
“PREP is pleased to announce the acquisition of Aurora City Place. Located in one of the fastest growing MSAs, Aurora City Place offers a premier regional shopping destination for the Denver metro area,” said Roy Williams, PREP chief investment officer. “PREP’s mission is to be the industry leader in transforming retail real estate assets and the acquisition of Aurora City Place will be a great addition to our growing strategic investment portfolio.”
CBRE’s Brad Lyons, Mike Winn and Tim Richey represented the sellers.
Built in 2003 by Miller Weingarten Realty, Aurora City Place was a sought-after asset. Lyons noted that multiple offers were received on the property, which offered a value-add component. At the time of sale, Aurora City Place was 84% occupied. Included in the sale was the vacant Sports Authority space.
PREP Property Group was founded by Michael C. Phillips, co-founder of Phillips Edison & Co., and built on the foundations of Phillips Edison’s strategic and net-lease real estate divisions. PREP is focused on transforming retail real estate by repositioning lifestyle centers, power centers and enclosed malls that are undermanaged, capital-starved, poorly merchandised and/or distressed, according to the firm. PREP also acquires and manages well-located, triple-net retail properties from noninstitutional sellers and creates value through lease restructure or tenant upgrade.
The strategic investment portfolio currently has five additional projects that include Hanover Crossing in Hanover, Massachusetts; Posner Commons in Davenport, Florida; Shadow Lake Towne Center in Papillion, Nebraska; Hillside Village in Cedar Hill, Texas; and Kenwood Collection in Cincinnati, Ohio.
In addition to the strategic investments portfolio, PREP has a net-lease investments division, which acquires well-located, single-tenant, net-leased retail properties throughout the United States.