Overview
Newmark is pleased to present the opportunity to acquire 9th+CO. The 257,677-square-foot Property is the premier Mixed-Use Neighborhood Center serving Denver’s wealthiest neighborhoods including Cherry Creek, Hilltop, Park Hill, Congress Park and Cheesman Park. 9+CO is 87% leased to a dynamic roster of 37 retail, service, restaurant and office tenants across 26 acres in a cutting edge live/work/play format.
Delivered in 2018 to 2021, the owner was selected by the University of Colorado and the City of Denver to redevelop the 26-acre former teaching hospital site in January of 2014. The Property’s location along Colorado Boulevard offers a central Denver retail location immediately supported by more than 1,300 newly constructed multi-family units within a one-block radius of the site.
This Mixed-Use Neighborhood Center offers walkability and abundant free parking with interior green space making it a retail oasis in the City. 9+CO has attracted brand name retailers and restauranteurs who provide essential services not readily found in this supply constrained area. From veterinarians and dog day care to a national drug store, the Property’s diversified tenant base means that you can get a gelato on your way to shopping for your next new bicycle before catching dinner and a movie at our 10-screen AMC theater.
9+CO includes a 62,766 SF, 5-story 100% leased office building with 6.1 years of WALT across three tenants. This Class AA office building with 16,000 SF floorplates, south facing window line and 49’-10” glass-to-core bay depths makes the Property appealing to a wide variety of tenants looking to provide its employees with walkable amenities. To top it off, the attached garage makes the Property “easy-to-use” with occupancy expenses that are ~40% less than those found in parking constrained Cherry Creek North neighborhood which sits ~1.5 miles away to the south.
A new owner will provide the finishing touches through leasing up the remaining storefronts which total 34,357 SF to meet a variety of space needs. In addition, the Offering includes a 1.48-acre development parcel on Block 5 with a 140’ height limitation and CMU-10 zoning that permits a wide variety of commercial and residential uses in a pedestrian friendly, masterplanned environment. With land values in Cherry Creek North of approximately $500 /SF across all intended uses, Block 5 presents 9+CO’s next investor with a cost-effective land option in a highly desirable neighborhood.
Investment Highlights
State-of-the-Art Mixed-Use Development – Situated along the Colorado Boulevard corridor and within minutes of Denver’s most iconic neighborhoods including Cherry Creek, Hilltop, Park Hill, Congress Park and Cheesman Park, the Property is a one-of-a-kind mixed-use development with nationally recognized tenants draws both a local and regional customer base that finds the Property’s 4.5 : 1,000 on- and off-street free parking both convenient and economical. Lastly, a landscaped, centrally located park can be strategically used for special events which draw both new and existing customers to the Property.
“Eatertainment” Cluster – The Property’s central location on Colorado Boulevard and strong retail mix is evident in tenants’ sales with our top restaurant exceeding $1,000 /SF in current sales underlying the strength of this “eatertainment” location anchored by the Fox Restaurant Concepts’ Culinary Dropout and Blanco. Recent leasing will add a Berg Hospitality Group restaurant, Trattoria.
Tenants are Choosing and Thriving at 9+CO – National retailers have strategically chosen 9+CO for its superior demographics and usability. This location is AMC Theater’s 2nd best performing theater in the state and highest grossing location on a per screen basis. Before they opened Culinary Dropout and Blanco Cocina + Cantina, Fox Restaurant Concepts’, which has 50+ restaurants nationwide, only other locations in Colorado were in Cherry Creek North. Postino currently has five strategically located restaurants in Colorado with 9+CO being their highest performing restaurant in the state. Most recently Chewy selected 9+CO for its pilot corporate owned Chewy Vet Care store which is now up and running. This is in spite of Ownership significantly cutting back on promotional expenses.
Wealthy Population – 9th & Colorado is surrounded by some of the most affluent neighborhoods in Denver. The average annual household income within a one-mile radius of the Property is $155,000 which is 26% higher than the average annual household income in the City of Denver.
Daytime (and Evening) Employment Adjacencies – Nationally recognized hospitals including Rose Medical Center with more than 2,000 employees and physicians sits immediately to the east of the Property and National Jewish Health’s headquarters and research hospital only ½ mile to the north. Both of these highly acclaimed medical centers provide a constant source of customers from its employees as well as visiting patients and their families.
Surrounded by New Multifamily – Within a one-block radius of 9th & Colorado nearly 1,300 multifamily units have been built in the last 10 years. Occupancy in these units remains strong at 94% even as rent continues to grow to an average of $2,280 per month.
Unmatched Visibility Drives Future Performance – With more than 57,000 vehicles pass by 9+CO daily via Colorado Boulevard, the Property’s strong performance is in spite of a significantly curtailed promotional program which was cut back after COVID to preserve capital.
Attractive Development Upside – Included in the offering is a 1.48-acre CMU-10 development parcel which can utilize the adjacent 720 space parking garage and 240 on-street parking spaces. The parcel’s zoning provides for a wide variety of related commercial and residential uses and is attractively located at the Center of the Property.
Parking Revenue Upside – There are currently 940 garage parking spaces that are dedicated to office and retail use at 9+CO. Other than 15 spaces that are reserved for NGL at $150/month per their lease, current ownership does not charge for parking at the Property. New ownership can take advantage of significant parking revenue opportunity. Cherry Creek Shopping Center charges $2/hour ($16 max) for parking, and the Clayton Lane parking garage charges $9/hour ($18 max).
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