A new owner has arrived at Parker Station, the most prominent office/retail building in Old Town Parker.
Mountain Elk Ridge LLC and CAIS Futures LLC, a local partnership of private investors, paid $18.5 million, or $247.97 per square foot, for the three-story office/retail building. The 74,607-sf building is located at 19751 E. Mainstreet, in the heart of Old Town.
TD Commercial Investments LLC, a local family office represented by John Witt and Matt Call of NavPoint Real Estate Group, was the seller.
“The seller meticulously maintained Parker Station inside and out using sophisticated management, organizational and accounting systems, which resulted in high occupancy throughout the seller’s period of ownership, and for these same reasons the asset drew substantial investor interest,” said Witt. Interest came from family offices, California 1031 exchange buyers, local private investors and more. “The buyer was a private investor coming out of a multifamily asset in a 1031 exchange, and they were immediately attracted to the location and physical condition of the property, resulting in a swift offer, contract and closing,” said Witt.
Parker Station is the largest mixed-use building in Parker. It is 99% occupied by small, local tenants, including restaurants, law firms and others. Fidelity, Edward Jones and American Family Insurance offices also are located in the building.
“It’s the iconic downtown Parker location,” said Witt, who added that the property includes a large parking lot. “The parking lot is the largest block of private parking in downtown Parker, so it allows opportunity for future development in addition to already having a stabilized building in a downtown setting,” he said.
The building, which sold at a 7% capitalization rate, was built in 2001 and fully renovated over the past five years.
“Our clients had built up a significant amount of equity in a ‘70s vintage apartment building in Cheyenne, Wyoming, resulting in a very low return on their equity. The 1031 exchange into the acquisition of Parker Station delivered a radical increase in their cash flow and overall returns, along with obtaining a long-term trophy asset with pride of ownership,” said Jeff Johnson, cofounder and principal at Pinnacle Real Estate Advisors, who represented the buyer with Andrew Monette, also of Pinnacle.
“In contrast to their previous apartment property, our clients are now able to operate a high-profile commercial asset under a full-time management company and pass through significant expenses to their tenants, like taxes, insurance and management, which really made the deal appealing to them,” added Monette.