Metroplex at Loveland’s Foundry listed for $6.3M

LOVELAND — The Metropolitan Theatres at the Foundry in downtown Loveland has been put on the market for new ownership for just more than $6.34 million.

The 24,000-square-foot movie theater and restaurant, which was completed last year, is available with nine years remaining on the original triple-net lease and up to 20 years of options to renew, according to the listing made public Tuesday morning.

Matt Henrichs, a senior vice president with CBRE’s Denver office managing the listing, told BizWest the theater would continue to operate under new ownership as normal unless Metropolitan Theatres Corp. were to default on the lease.

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The property going up for sale is part of developer Brinkman Real Estate LLC’s exit strategy after building the larger complex in the area. Patina Flats, the apartment complex developed as part of the Foundry, was sold in February to a California apartment management company for $44 million.

The theater’s sale is meant as an investment opportunity backed up by future revenues. While the theater is projected to host more than 200,000 visitors a year, the COVID-19 restrictions in place for much of this year and likely through at least the spring of 2021 have crimped that cash flow.

Henrichs believes the property is listed at a discount of between 100 to 200 basis points of its projected capitalization rate in a healthy economic environment. A capitalization rate is a common method of valuing real estate investment opportunities by dividing the property’s projected net operating income by its market value.

However, he thinks the short-term cash flow issues caused by the pandemic are outweighed by what the theater could generate in a post-pandemic time.

“If you ask the question, has the pandemic and its impact to the theater business been impactful relative to the viability of the sale of the theater, I think the answer is yes,” he said. “The bottom line is, it’s a great piece of real estate… it’s a great infill location that we expect, in a stabilized and normalized operating economy, will do very, very well.”

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