Institutional Property Advisors (IPA) Closes Sale of New Sprouts Farmers Market in Denver
IPA first vice president Ryan Bowlby and senior managing director Drew Isaac, along with Marcus & Millichap senior associate James Rassenfoss, in the firm’s Denver office facilitated the transaction for the seller, Evergreen DevCo Inc., and procured the buyer, Rustic Partners LLC.
The 23,300-square-foot supermarket was developed by Evergreen as a build-to-suit for a Sprouts Farmers Market that anchors a new shopping center located on the northeast corner of 56th Avenue & Tower Road.
“The highly anticipated addition of a healthy specialty grocer to a rapidly growing residential & commercial trade area resulted in the deal going under contract during the building’s construction and closing simultaneously with the store’s grand opening & lease commencement,” said Bowlby.
The buyer, a Colorado-based private investor, acquired the property as a part of a 1031 exchange. “Our client was exiting a multi-family project and targeting stability, cash flowing assets and was thrilled to acquire a generational asset like the subject property,” said Rassenfoss.
Sprouts Farmers Market offers a unique grocery experience featuring an open layout with a wide selection of natural and organic foods. Sprouts’ net sales totaled over $6.4 billion in 2020 and the chain has seen rapid growth, with an increase in stores of nearly 800% over the last decade. The supermarket currently operates more than 360 stores in 23 states nationwide.
“Grocery continues to be the most coveted retail asset class among investors as strong store sales, limited inventory, and low interest rates have driven cap rates below pre-pandemic levels,” added Isaac.
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About Institutional Property Advisors (IPA)
Institutional Property Advisors (IPA) is a division of Marcus & Millichap (NYSE: MMI), a leading commercial real estate services firm in North America. IPA’s combination of real estate investment and capital markets expertise, industry-leading technology, and acclaimed research offer customized solutions for the acquisition, disposition and financing of institutional properties and portfolios. For more information, please visit www.institutionalpropertyadvisors.com.