The Shops at Centennial has sold for $1.9 million to a buyer from Ketchum, Idaho, after being on the market for about 45 days.
The five-unit building is located at 4935 Centennial Blvd., and is currently occupied by four tenants — Bamboo Court Restaurant, Michael Allen Hair Design, Canyon Crest Liquors and Marco’s Pizza — with one vacancy.
Greg Kaufman, the principal at Core Commercial in Colorado Springs, has been representing the seller, a group from California, and brought in Troy Meyer of SVN Denver Commercial to assist. Both said the shopping center is in a good area, with lots of residential homes nearby.
It sits at the intersection of Centennial and Pinon Valley Road.
“We had a lot of interest in the property when marketing it,” Meyer said. “That speaks to the affluent area surrounding it.”
Kaufman noted that Marco’s has been a tenant for a couple of years, and the others for much longer.
“Those are all good tenants and have been in that location for a long time,” Kaufman said.
The Idaho buyer is using the name of Centennial Shopping Center LLC. The previous owner, from California, used the name Centennial Partners LLC, when it bought the property for $2.15 million in 2007.
Meyer said the vacancy is a big reason why the sale price was lower than it was 11 years ago, when all units were filled. The sale’s closing date was Feb. 15.
“I’d say it was [lower] mostly due to the vacancy,” Meyer said. “And 2007 was another peak in the market.”
The retail building is 11,371 square feet — with the “end cap” vacancy being about 25 percent of that. Meyer said the buyer feels there is “a little upside” due to the vacancy. There is also just a 3.8 percent vacancy in the surrounding submarket, according to SVN Commercial Denver.
The buyer will renovate the vacant unit, Kaufman said. It’s been mostly vacant the past four years, since Boonzaaijer’s Dutch Bakery moved to its current location at 610 E. Fillmore St.
“They’re going to get that vacant unit into vanilla shell condition, clean it up and remove some internal walls,” Kaufman said. “It’ll be a blank slate and look nice and fresh.”
Kaufman said the property’s new owner would retain him as the leasing agent for the property. He has seen interest in the vacancy from a Mexican restaurant, a boutique gym and a physical therapist, which he feels might be the strongest candidate to lease the property.