Hoping to raise rents after a floor-to-ceiling renovation, local real estate investors have acquired a Lakewood shopping center for $5.5 million.
Denver-based Centre Point Properties and Los Angeles investment firm Abington Emerson purchased the Villa South Shopping Center, which sits on the corner of Wadsworth Boulevard and Mississippi Avenue south of Belmar. The sale covers three retail buildings totaling 65,000 square feet.
“It’s one of the last retail centers that’s been falling apart and neglected that’s a value-add opportunity,” said Alan Bruno, VP at Centre Point. “That area is one of the strongest retail corridors (in metro Denver).”
Villa South is charging $10.50 per square foot annually, Bruno said, compared to as much as $22 per square foot at nearby retail space. And while neighbors have vacancy rates around 5 percent, Villa South is 70 percent vacant.
Bruno thinks $2.5 million in renovations over six to eight months will help Villa South nab the kind of lease and vacancy rates the rest of the neighborhood does.
“We’re doing a full face lift,” he said.
That includes redoing the façade and roof of the building, landscaping and parking, new HVAC, fresh signage and tenant improvements.
MasterBuild Architects is doing the redesign. Winter Ridge Builders is the general contractor.
The property – 1000, 1050 and 1090 W. Wadsworth Blvd. – changed hands March 10. The buyer is AEI CPP I, LLC, and the seller is Villa Property, LLC.
Tanner Johnson with Axio Commercial represented the buyer and will handle leasing when the space reopens. Bruno said existing tenants, including a pizzeria and a bar, plan to renegotiate their leases and hope to invest in renovating their spaces.
Centre Point also purchased the Wheeler Block office building in LoHi this time last year in a $7.7 million deal.