Mixed-use Boulder property sells to local investor for $2.95M
A multitenant, mixed-use property in downtown Boulder sold for $2.95 million.
Prospect Investments LLC, a Denver-based real estate investment firm, purchased the two-story, 9,700-square-foot property at 1110 13th St. from seller Andy James. Tucker Brown of Re/Max represented the buyer, while Eric Rutherford of WK Real Estate represented the seller.
According to Rutherford, the property’s retail space is leased to two restaurants, Fat Shack and Gaia Masala & Burger, both of which occupy approximately 1,500 sf. Each restaurant has three years remaining on its lease.
The rest of the property is residential space: four units ranging from 900 to 1,000 sf. There are two one-bedroom units and two two-bedroom units. According to Brown, the residential space was 100% leased at the time of the sale. He said this is typical as the building is primarily leased to college students. The buyer will take over responsibility for managing and leasing the property.
According to Brown, the property’s central Boulder location and solid tenant occupancy contributed to the buyer’s interest.
“The downtown location near to the University of Colorado campus was a desirable factor of the asset,” Brown said. “Also, there’s a lot of economic driving factors in the area with a variety of jobs and good real estate values.”
Its proximity to the buyer’s other holdings in Boulder, including a residential property at 3460 Madison Ave., was another attractive factor, Brown said. The buyer adds this property to a portfolio of similar retail and multifamily properties across Colorado and Pennsylvania.
The property also is within walking distance of major retailers and entertainment venues, including Starbucks, Walgreens and The Fox Theatre.
The property was built in 1913, with the seller owning it since 2005. In that time, Rutherford said the seller made renovations to the retail spaces to accommodate restaurant occupancy, including adding new freezers and other kitchen appliances.
While the property is well maintained, Brown said the buyer has plans to renovate in the future but will focus primarily on upgrading the residential space.
Published in the July 15-Aug. 4, 2020, issue of CREJ.