Las Vegas-based Domunis Development paid seller Gateway American Properties of Denver $3.9 million for the property, located at the southeast corner of Estrella Boulevard and Van Buren Street, in an off-market deal that closed in less than 50 days.
"Economically it was a really good deal. And because it was a quick close, (the sellers) were motivated," Mark Bramlett with Grubb & Ellis/BRE Commercial's retail group tells GlobeSt.com of the Estrella Gateway Center property.
Bramlett says the seller, who recently developed an adjacent 273-acre property for residential housing, wasn't interested in developing the retail corner and wanted to unload the acreage before he was forced to put up a pro-rata share for improvements along Estrella Boulevard, which the city is planning to enlarge. "He was motivated to sell the land quickly before he had to put up the bond money for the city," says Bramlett, who put the sale together for both buyer and seller.
Although plans for the site have not yet been finalized, the new owner is hoping to develop a power center anchored by a big box retailer at the location, Bramlett says. "We're working through a couple different site plans and we're trying to understand who the major anchors will be and figure out what our destiny is on the property," he adds. "We'll do anything that will complement that area." Construction on the project, located about a quarter mile from a proposed Wal-Mart, is expected to begin by next year.
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