Chapel Hills Mall Sells for $33.5 Million ($59.53/SF)


NKF Capital Markets announces the sale of Chapel Hills Mall located at 1710 Briargate Boulevard in Colorado Springs, Colorado. Chapel Hills Mall is a super regional mall situated along Interstate-25 at the intersection of Academy and Briargate Boulevards. Measuring over 1.1 million square feet of gross leasable area, 562,733 square feet is included in the sale. The mall was purchased by Mason Asset Management and Namdar Realty for $33,500,000 or $59.53 per square foot. NKF Capital Markets Executive Managing Directors Thomas Dobrowski and Riki Hashimoto, Director Katharine French and Associate Ed Leinss handled the transaction.

One of two enclosed malls servicing the expansive Colorado Springs metropolitan area, Chapel Hills Mall offers a well curated mix of regional and national in-line tenants, as well as a robust anchor and major tenant line-up. Burlington, Dillard’s, Macy’s and Sears are complemented by lifestyle and major tenants such as AMC Chapel Hill 13, Dick’s Sporting Goods and H&M. The mall was built in 1982 and renovated in both 1998 and 2013 (the cinema addition).

“Chapel Hills Mall is a sound, value-add opportunity, offering the new owner steady in-place gross and net

operating incomes from a unique mix of stable and predictable cash flow. This income will provide ample free cash flow to fund tenant and capital improvements as new tenants are introduced,” commented Dobrowski. “Further, Chapel Hills Mall offers significant value-add upside via the potential lease up of the former Gordmans anchor box, which was renovated in 2016 and 114,870 square feet of vacant in-line and major tenant space.”

Located in northern Colorado Springs, the second-largest city in Colorado, Chapel Hills Mall is also positioned along the area’s dominant retail corridor. Situated along I-25 (120,000 vehicles per day), at the intersection of Academy Blvd. and Briargate Blvd. (+65,000 vehicles per day), Chapel Hills Mall benefits from proximity to additional major retailers in the area (Apple, Barnes & Noble, Best Buy, DSW, Jimmy John’s, Olive Garden, PetSmart, Sonic, Steak’n Shake, Walmart and Whole Foods), increasing both vehicular and foot traffic. It  is also supported by a steady stream of traffic from nearby residents and commuters to and from both Denver and downtown Colorado Springs.

“The opportunity for the former Gordmans box is especially compelling, as it creates potential to add to a diverse anchor, major tenant and outparcel line up that is already a substantial traffic draw,” said Hashimoto. “Potential tenants for the former Gordmans box include a regional fitness operator and a national entertainment company, two uses that do very well in a prime location like Chapel Hills Mall. The Briargate Car Wash site also presents the opportunity to redevelop and expand this outparcel to accommodate a larger restaurant or retail use.”

Colorado Springs is the second largest city in the state and boasts a population of approximately 460,000 residents with a median household income of $81,832. The immediate trade area of Chapel Hills Mall reports a median household income of $102,511, substantially higher than the median incomes of both the state of Colorado and The United States. This can be attributed to the area’s high paying industries such as aerospace, defense, healthcare and information technology. Notable employers within the Mall’s trade area include Hewlett-Packard, Lockheed Martin and the United States Air Force Academy. Additionally, tourism is the third largest employment sector in Colorado Springs, attributable to the city’s geographic location at the base of the Rocky Mountains. The region offers access to array of parks, hiking and biking trails, skiing and other outdoor sports, which draw more than five million tourists to the area annually.

Chapel Hills Mall is the second mall purchase in Colorado Springs for Mason Asset Management and Namdar Realty. Active throughout the United States, Mason Asset Management and Namdar Realty are considered the most active mall buyer in the country. “With two malls owned in the Colorado Springs market (the first purchase was Citadel Mall), Mason Asset Management and Namdar Realty will be able to further capitalize on the region’s continued growth,” concluded Dobrowski.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.