A local real estate company’s bet on defunct Denver-area off-track betting and entertainment center Red and Jerry’s paid off last month when it sold the renovated building for nearly double what it bought it for last year.
Cadence Capital Investments sold the 102,000-square-foot building located just off South Santa Fe Drive at West Oxford Avenue for $14.8 million on April 20, according to a news release from the sale’s broker, CBRE. The Greenwood Village-based company bought the space, occupied for 22 years by an at-times raucous sports betting room and bar and more family-friendly arcade, for $7.5 million in 2017, days after Red & Jerry’s owners folded their hand there. Declines in the live animal racing and arcade industries helped bring on the business’s demise, owners said.
Last month’s buyer, California-based LBA Realty, takes on the building and a tenant with a long-term lease. Ferguson Enterprises, a plumbing, HVAC and industrial products wholesaler, now operates a warehouse and sales center in the space.
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“We were drawn to the real estate because the site featured a unique blend of industrial and retail characteristics that created the opportunity for us to deliver increased value to our tenants,” Lucy Dinneen, Cadence’s managing director for Colorado, said in a news release. “Our clients were able to get the industrial utility and pricing of an industrial space but with added brand-building benefits of retail and our buyers have a fantastic asset with future potential as infill mixed use, industrial or retail as the future dictates.”
Cadence installed four new dock doors, LED lighting and upgraded sprinklers, and made improvements to the parking lot prior to the sale, according to CBRE. Cadence partner Rob Beery told The Denver Post last year his company invested “several million dollars” in the building.
The warehouse formerly known as Red & Jerry’s is located in Denver suburb of Sheridan. It was long known for its brightly colored sign that hung over Santa Fe and advertised upcoming boxing matches and other events to attract passing drivers. It’s also located in a part of town with the lowest industrial vacancy rate in the metro area, according to CBRE research, 3.4 percent.
Industrial real estate in Denver has become more attractive to international investors in recent years, thanks in part to some high-dollar deals. With a building within walking distance of a light rail stop and Sheridan’s River Point shopping center, it remains to be seen if LBA Realty will someday redevelop the space.
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