LONGMONT — Sherman Village, a 62,000-square-foot office and retail property at 1225 Ken Pratt Blvd., in Longmont, has been sold for $7.4 million to a couple from Golden.
Sherman Village II LLLP, an investment group led by John Cohagen of Boulder, sold the seven-acre property to Susan and Michael Mote, who used the entity Silver Leaf Development LLC to make the acquisition.
The property is approximately 90 percent leased with restaurants Le Peep and Chuburger anchoring ground-floor corner spaces.
The Motes initially are investing in upgrading landscaping in the parking lots and around the building, including the addition of life-size or larger cast aluminum animals at each of the four entrances to the property.
Michael Mote said they will install two horses, two elk, two rams, a mountain lion, a bear and a bison with two calves. He said upgrades to the building, which has retail on the ground floor and offices on the second floor, will be coming “down the road.” The building was constructed in 1979 and remodeled in 2003.
Bob Kaplan and Brandon Kramer at Marcus & Millichap’s office in Denver listed the property for the seller.
“The property generated a lot of interest from local and national buyers given its proximity to the Boulder-Longmont corridor, the Diagonal Highway,” Kramer said in a prepared statement.
Cohagen, the principal managing officer of Sherman Village II, said via phone that the group is making a strategic move away from the Longmont area into the Lafayette/Boulder area.
“We have owned the property for quite some time,” Cohagen said, referring to Sherman Village. “As an investment group, it was time to move on to other investments. We have several projects we are working on in the Lafayette area, right now.”
Matt Lewallen, a principal of Pinnacle Real Estate Advisors in Denver, who represented the buyers, said they used a 1031 exchange to transition proceeds from the sale of a 19-unit apartment complex in Lakewood. Lewallen said the apartment complex had a 5.8 percent capitalization rate, and that Sherman Village has a 7.3 percent cap rate with upside opportunities in both rent and vacancies.
A 1031 exchange allows an investor to sell a property and reinvest the proceeds in a new property, deferring all capital-gain taxes.