Kensington Real Estate Group Announces Sale of Colorado Sprouts-Anchored Retail Center for $34.28M
Kensington Real Estate Group has closed on the sale of the 144,000-square-foot Fairfield Commons in Lakewood, Colo. for $34.28 million. Anchored by a newly-developed Sprouts Farmer’s Market and featuring a synergistic mix of retail and service tenants, Fairfield Commons was acquired by an affiliate of the Phillips Edison Group.
The sale price represented an approximate 5.67% cap rate.
Kensington Real Estate Group is owned and operated by Pat Galentine and Chris Hite, founding Principals of Coreland Companies. Coreland Companies is one of Southern California’s leading real estate management and brokerage firms.
“Our repositioning efforts at Fairfield successfully converted a value-add asset into a core asset,” shared Galentine. “Fairfield was always a well-positioned property that needed a stable, daily-needs anchor. We are very pleased that we were able to build value by bringing Sprouts on board.”
Fairfield Commons was 40% vacant at the time of Kensington’s acquisition for $22 million in 2007. Despite being positioned along one of Denver’s major retail corridors, the center could not compete with surrounding grocery-anchored properties.
Kensington executed a major renovation and expansion, which included the addition of a 20,000-square-foot Planet Fitness and the recent development of a 27,000 -square-foot Sprouts. A total of 16,000 square feet was demolished to accommodate the recently-opened specialty grocer, which ignited the re-tenanting efforts of the remaining shop space upon announcement.
Other tenants at Fairfield Commons include T.J. Maxx, Chili’s Bar & Grill, Black-eyed Pea, Starbucks, Rue 21, Red Wing Shoes and Citi Financial.
“Kensington continues to actively pursue new investment opportunities,” said Galentine. “Given our depth of experience, we can bring great value to existing shopping centers throughout the Western United States.”