The Shops at Greenwood Village consist of a 209,953 square foot neighborhood shopping center located in Greenwood Village, CO. The shopping center is highly visible and located on Arapahoe Road, one of the premier retail thoroughfares within the southern Denver market with 65,000 vehicles passing daily. The property consists of five multi-tenant buildings containing 69 tenants and is anchored by Natural Grocer’s Vitamin Cottage and the United States Postal Service.
Greenwood Village consists of four single-story buildings and one multi-story building, all of which were constructed in 1980 and renovated in 2012 with all new stucco facades. Our understanding from conversations with property management and current ownership is that the property, while aesthetically bland, has been very well maintained and no significant capital improvements should be necessary in the near future. Approximately 85% of the roof was replaced in 2015, which includes a 20-year transferrable warranty expiring in 2035. We have commissioned a property condition report to be provided prior to closing. During due diligence, our property management professionals conducted a thorough walk-through and inspection of vacant units and all common areas. Overall, the Property is in good physical condition from our initial assessment and, in addition to annual capital reserves, we have budgeted $600,000 for minor capital expenditures work and non-recoverable capex associated with an in-place site development plan as part of our underwriting.
Greenwood Village thrives because of its strong location that is heavily trafficked and supported by an affluent and densely populated area within the southern Denver region. In Greenwood Village, demand for retail goods and services grew 2.1% between the 4th quarters of 2014 and 2015 and is continuing to grow due to high projected population growth and demand within the 1-mile site radius (2016 data not yet released). Furthermore, low interest rates and robust local residential market support the increase in spending. The Center’s strong location and real estate fundamentals give us confidence in the security of this investment, while current vacancy and opportunities for tenant repositioning provide upside potential.