Buyer picks up Parker shopping center for $5M
A Parker shopping center traded hands to a local investor for $5.41 million.
Renco Properties purchased Parker Plaza, the 34,060-square foot neighborhood shopping center located at 10401 S. Parker Road, from seller Cactus Moon Parker LLC. Jon Hendrickson and Mitch Veremeychik with Cushman & Wakefield were transaction brokers in the sale.
According to Veremeychik, the property was listed in late August and garnered significant interest from a variety of investors.
“We knew Parker Plaza was a quality neighborhood center, but the level of investor demand was even surprising to us,” Veremeychik said. “We had a substantial number of qualified offers in a very short time, resulting in a transaction well beyond the list price. The real estate is fundamentally sound in the ways that help retailers succeed, and we anticipate this will be a strong performing investment for years to come.”
Veremeychik attributed strong investor interest to the center’s stable, long-term tenants. At the time of the sale, the center was 95% occupied by multiple tenants, including restaurants, apparel stores and beauty salons. Veremeychik said since the onset of COVID- 19 in March, the seller retained all of the tenants and collected 100% of the rent. He noted that multiple tenants extended their leases as well, and one new tenant was secured at the center.
“Parker Road frontage and strong surrounding demographics led to tenant retention and steady collections through one of the toughest times for retail we’ve ever experienced,” said Veremeychik. “The property’s location within Douglas County, which was very pro-business after the shutdowns in March, also contributed to tenant success, as the county allowed the tenants to reopen and operate.”
According to Cushman & Wakefield research, Douglas County is consistently among the wealthiest counties in America. The property, which is located in northern Douglas County, is situated in a retail hub that includes dozens of national retailers. It’s also proximal to multiple residential neighborhoods.
The Parker-based buyer adds the asset to a portfolio of two office properties in Parker and Lakewood, according to CoStar data.
Featured in the December 16, 2020 – January 5, 2021, issue of CREJ