A Longmont retail building leased to two strong credit tenants sold for $12.25 million.
The building is located at 1101-1125 S. Hover Road in St. Vrain Centre. Just over 45,000 square feet, it is 100 percent occupied by Sprouts Farmers Market and PetSmart. The names of the buyers and sellers weren’t released, but records indicate the buying entities are affiliates of The Kroenke Group and the sellers are members of a Longmont family.
PetSmart has been in the building since it was completed in 2000. Sprouts, also a longtime tenant, took over space originally occupied by Borders Bookstore.
“Both have reasonable term remaining, and in addition to that, they also have a longstanding history in this location and plenty of signals that they would continue to be there for the long term,” said Jon Hendrickson of Cushman & Wakefield, who represented the sellers with Aaron Johnson, also of Cushman & Wakefield.
Cushman & Wakefield had the listing to sell the property but, prior to conducting a widespread marketing campaign, presented it to a few select groups “of which this buyer was the most probable,” Hendrickson commented.
That’s because affiliates of the same sellers and buyer transacted another property at St. Vrain Centre in early March. That deal comprised two multitenant retail buildings totaling approximately 24,000 sf at 1067 and 1087 S. Hover Road. Tenants include Starbucks, Noodles & Co., Cold Stone Creamery, Wahoo’s Fish Taco and others.
Built in 2001 and 2003, the buildings were 90 percent leased and sold for $8.1 million in a “highly competitive process” involving predominantly private capital, according to Hendrickson.
St. Vrain Centre is across the street from the Village at the Peaks retail and entertainment center, in a micro-market that serves as “the center of commerce for Longmont,” he noted. Retailers in the immediate vicinity include Whole Foods, King Soopers, Kohl’s, Sam’s Club and others. “It’s really a premier retail submarket … certainly for Longmont,” Hendrickson said.
“It’s just another example that not all retail is created equal, and grocery-anchored and high-quality multitenant inline strips are highly sought after.”