Canopy Real Estate Partners, a Scottsdale, Arizona-based institutional real estate platform focusing on middle-market assets, has acquired the 59,000-square-foot Gold’s Marketplace retail center in the Denver suburb of Wheat Ridge, Colorado, for $15.8 million.
Gold’s Marketplace is 83% occupied with 17 tenants including Illegal Pete’s and Esters Neighborhood Pub. The property was purchased at $268 per square foot from a seller facing a maturing bridge loan.
Canopy partnered on this deal with Denver-based CentrePoint Properties, which plans to increase rents by 15% to 25% as below-market leases expire and activate underutilized space, projecting 18% to 20% internal rates of return.
According to the company, the acquisition is the fifth investment in what founder Jay Rollins calls a “bond-like product” that provides 6% to 8% annual returns with 16% to 19% upside potential over three to five years.
“We are not just buying assets – we are building a very intentional portfolio to provide investors with a new financial product that isn’t available today,” said Rollins. “While this vehicle is not technically a bond, we believe it is a “bond proxy,” as the portfolio is designed to provide a steady dividend, with a mid-term duration, and equity-like returns at liquidation.”
