DENVER-CB Richard Ellis brokers Tom Mathews and Chad Brue are listing the Big Bear Ice Arena in Lowry for the lender that acquired the ice rink from its developer. The ice rink, the only public one in the city and county of Denver, does not have a selling price.
Brue is an investment broker with CB Richard Ellis' private client group, while Mathews is a long-time retail broker with CB Richard Ellis. Mathews also lives in Lowry, a former Air Force base considered a model for the redevelopment of a military base in the US. He and his family also play hockey in various leagues at the arena.
Although the arena is the most high-profile failure at Lowry, it is not because it poorly performed. Rather, its New Jersey developer, American Hockey Denver, tried to expand in other various markets and used cash flow from Big Bear to prop up failing ventures, Brue says. The ice arena benefits form a lack of competition in the surrounding area, he adds.
Other than ice time, Big Bear benefits from cash flow generated from its full-service concession, stand, group parties, arcades and its retail pro-shop, Mathews says. He adds a new owner could beef up the retail, other entertainment and the pro shop. Also, the arena didn't renew its liquor license, but it should be relatively simple for a new owner to get one, he says.
American Hockey bought the former hangar in 1998 and converted it into Big Bear, with two National Hockey League-sized ice rinks. For five straight years, it generated in excess of $15 million in annual gross revenues and $400,000 to $500,000 in net operating income, they say.
Starting in 2003, the facility went through a lengthy foreclosure and receivership. But the arena has remained opened and popular event through the foreclosure, Mathews notes.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.