NKF Capital Markets announced Chapel Hills Mall, located at 1710 Briargate Blvd., has sold for $59.53 a square-foot, amounting to a total sale price of $33.5 million.
“Measuring over 1.1 million square feet of gross leasable area, 562,733 square feet is included in the sale,” according to a news release.
Thomas Dobrowski and Riki Hashimoto, NKF Capital Markets executive managing directors, Director Katharine French and Associate Ed Leinss handled the transaction.
“One of two enclosed malls servicing the expansive Colorado Springs metropolitan area, Chapel Hills Mall offers a well curated mix of regional and national in-line tenants, as well as a robust anchor and major tenant line-up,” the release said.
The mall was built in 1982 and renovated in both 1998 and 2013, when a cinema was added.
“Chapel Hills Mall is a sound, value-add opportunity, offering the new owner steady in-place gross and net operating incomes from a unique mix of stable and predictable cash flow. This income will provide ample free cash flow to fund tenant and capital improvements as new tenants are introduced,” Dobrowski said in the release. “Further, Chapel Hills Mall offers significant value-add upside via the potential lease up of the former Gordmans anchor box, which was renovated in 2016 and 114,870 square feet of vacant in-line and major tenant space.”
The immediate trade area of Chapel Hills Mall reports a median household income of $102,511, according to the release, “substantially higher than the median incomes of both the state of Colorado and The United States. This can be attributed to the area’s high paying industries such as aerospace, defense, healthcare and information technology.”
Chapel Hills Mall is the second mall purchase in Colorado Springs for Mason Asset Management and Namdar Realty, the first being The Citadel mall which sold near the end of 2015.
“With two malls owned in the Colorado Springs market … Mason Asset Management and Namdar Realty will be able to further capitalize on the region’s continued growth,” Dobrowski said.