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DENVER-In the largest retail deal so far this year, Dallas-based PO’B Montgomery has paid $30.8 million for the Bear Valley Shopping Center. Bear Valley, which opened as a shopping center in 1966, is one of the oldest shopping center in Denver.

The 342,850-sf center in southwest Denver has been completely upgraded, redeveloped and re-tenanted since locally based Chandelle Properties bought it in June 1993. According to public records, Chandelle paid $5.5 million for it then.

Tim Swan, who handled the deal with fellow CB Richard Ellis brokers Mary Sullivan and Ron Urgitus, said it was a great deal for both sides. He noted that P0′B wanted safe, stable cash flow and it found it with Bear Valley’s anchors, which include Home Depot and King Soopers. Chandelle Properties brought those tenants, as well as the Westwood College of Technology and Daddy Mom Daycare Center to Bear Valley.

The center was 99.7% leased at the time of the purchase, Swan says, adding that it was nevertheless a complicated deal. He says that some REITs didn’t want to bid for it because it contains an office portion.

Also, Chandelle has another six years remaining on a loan that is above today’s market rate, Swan tells GlobeSt.com. “But P0′B was savvy enough to see the long-term value-added opportunity down the road,” Swan notes.

Despite the problems, there were four institutional finalists for the property, he says. “It’s interesting to me that this was probably not the type of deal that institutions would have liked to do only a short time ago,” Swan explains. “In today’s market, however, well-anchored centers carry a premium and are extremely sought after.” he notes.

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