Shopping Community

Red Cliff Pointe

2650 North Ave, Grand Junction, CO 81501

Listing Price: $4,420,000

Cap Rate
7.75%
Gross SF
54,358
Rentable SF
50,363
Price/Gross SF
$81.31
Lot Size
4.36 acres
Year Built
1990

Investment Overview

This is a Medical/Retail value-add opportunity property with 24% vacant space available for lease-up. Marcus & Millichap is proud to present to qualified investors Red Cliff Pointe, a 50,363 square foot medical/retail shopping center. Red Cliff is located on North Avenue in Grand Junction, a major four-lane thoroughfare with traffic counts of 34,287 vehicles per day. Built in 1990, Red Cliff Point is 78 percent leased to seven tenants, of which the majority of the leasable space are medical related anchored by CSL Plasma, the worlds largest plasma collection network serving 60 countries worldwide. Other medical tenants include Comfort Dental, New Century Hospice and Aerocare Respiratory Equipment. All leases are triple-net (except Tuesday Morning gross) and current in-place rents average only $10.28 per square foot. Situated in an Opportunity Zone, Red Cliff Pointe’s stability and future upside growth potential cannot be overstated. Comfort Dental has been in occupancy since 2014 and has four years remaining (4/2024); CSL Plasma is on a 15-year lease with approximately 11 years remaining (2/2031) with two option periods including rent bumps; Tuesday Morning has been in occupancy since 2000. It is also noteworthy that CSL Plasma has invested in excess of $1,000,000 in tenant improvement costs in their space. Considering the current COVID -19 Pandemic, there is a increased concern with the future stability of tenants in typical retail centers. Many restaurant and general merchandise stores are suffering great financial hardships and many will cease operations in the near future. There is a “flight to stability” which Red Cliff Pointe is perfectly positioned. Approximately 60% of the space is medical related covering dental, plasma collection, hospice service and respiratory equipment. The remaining vacant space would lend itself nicely to walk-in urgent care, dermatology and facial spas etc. thus combining well with the existing tenant profiles. Discount retailer, Tuesday Morning (TUES) just recently entered Chapter 11 Bankruptcy reorganization, shuttering 230 stores. The store at Red Cliff Pointe, however, will remain open and is reportedly one of their stronger performers. They also just renegotiated their lease thru 4/23, which is reflected on the rent roll herein. According to reports from Wall Street, Tuesday Morning should emerge from reorganization a much stronger company for the future. Other national retail tenants in the immediate area consist of Big Lots, Sherwin Williams, Dollar Tree, Rent-a-Center, Planet Fitness, Aaron’s, Sonic, McDonald’s, Discount Tire, Auto Zone, O’Reilly’s Autoparts, Wendy’s, Village Inn, and Big 5 to name a few. The city of Grand Junction, with an MSA population of approximately 147,000, has experienced its best growth period in a decade. The economy has become more diverse and less dependent on the oil and gas industry. Many new companies in the tech industry as well as service and distribution have relocated to the Grand Junction valley. In November 2019, the Bureau of Land Management began its relocation from Washington, DC to Grand Junction. Over 200 employees are expected to move to Grand Junction by July of 2020. In addition, North Avenue is undergoing a revitalization plan. It is part of a four-mile corridor which is being petitioned as an “Urban Renewal” area. This will also drive more traffic to this retail area and instill increased rents and occupancy levels for the future. Priced at a going-in 7.75 percent capitalization rate on actual rents in place and $87.76 per square foot, Red Cliff Pointe will provide a new owner with a 10 percent plus going-in cash flow, stable tenancy, anchored by world leader in plasma collection, CSL, other national tenants, excellent frontage on a major high traffic thoroughfare, and substantial upside potential in leasing up the vacant space, pushing cash-on-cash returns toward 20 percent.

Investment Highlights

  • Anchored by CSL Plasma, 11 Years Left on Lease with Rent Escalators
  • CSL Plasma has Invested Over $1,000,000 in their Space
  • CSL Plasma, Worlds Largest Plasma Collection Network with $8.5 Billion in Revenue
  • 43 Percent of Tenants are Related Medical Tenants
  • Numerous National Credit Tenants in Immediate Area Including Big Lots, Wendy's, McDonald's, Wells Fargo, Planet Fitness, Sherwin Williams, Dollar Tree, Big 5 and Many More
  • Located in a Grand Junction "Urban Renewal" Area and an Opportunity Zone
  • 76.42% Leased and Occupied at Present
  • One of Tuesday Morning's High Revenue Stores- Will Remain Open

Exclusively Listed By

  • Barry Higgins

    Senior Vice President Investments

    Email Barry

    License(s): CO: EA748415

    Denver

Listing Price: $4,420,000

Cap Rate
7.75%
Gross SF
54,358
Rentable SF
50,363
Price/Gross SF
$81.31
Lot Size
4.36 acres
Year Built
1990

Investment Highlights

  • Anchored by CSL Plasma, 11 Years Left on Lease with Rent Escalators
  • CSL Plasma has Invested Over $1,000,000 in their Space
  • CSL Plasma, Worlds Largest Plasma Collection Network with $8.5 Billion in Revenue
  • 43 Percent of Tenants are Related Medical Tenants
  • Numerous National Credit Tenants in Immediate Area Including Big Lots, Wendy's, McDonald's, Wells Fargo, Planet Fitness, Sherwin Williams, Dollar Tree, Big 5 and Many More
  • Located in a Grand Junction "Urban Renewal" Area and an Opportunity Zone
  • 76.42% Leased and Occupied at Present
  • One of Tuesday Morning's High Revenue Stores- Will Remain Open

Investment Overview

This is a Medical/Retail value-add opportunity property with 24% vacant space available for lease-up. Marcus & Millichap is proud to present to qualified investors Red Cliff Pointe, a 50,363 square foot medical/retail shopping center. Red Cliff is located on North Avenue in Grand Junction, a major four-lane thoroughfare with traffic counts of 34,287 vehicles per day. Built in 1990, Red Cliff Point is 78 percent leased to seven tenants, of which the majority of the leasable space are medical related anchored by CSL Plasma, the worlds largest plasma collection network serving 60 countries worldwide. Other medical tenants include Comfort Dental, New Century Hospice and Aerocare Respiratory Equipment. All leases are triple-net (except Tuesday Morning gross) and current in-place rents average only $10.28 per square foot. Situated in an Opportunity Zone, Red Cliff Pointe’s stability and future upside growth potential cannot be overstated. Comfort Dental has been in occupancy since 2014 and has four years remaining (4/2024); CSL Plasma is on a 15-year lease with approximately 11 years remaining (2/2031) with two option periods including rent bumps; Tuesday Morning has been in occupancy since 2000. It is also noteworthy that CSL Plasma has invested in excess of $1,000,000 in tenant improvement costs in their space. Considering the current COVID -19 Pandemic, there is a increased concern with the future stability of tenants in typical retail centers. Many restaurant and general merchandise stores are suffering great financial hardships and many will cease operations in the near future. There is a “flight to stability” which Red Cliff Pointe is perfectly positioned. Approximately 60% of the space is medical related covering dental, plasma collection, hospice service and respiratory equipment. The remaining vacant space would lend itself nicely to walk-in urgent care, dermatology and facial spas etc. thus combining well with the existing tenant profiles. Discount retailer, Tuesday Morning (TUES) just recently entered Chapter 11 Bankruptcy reorganization, shuttering 230 stores. The store at Red Cliff Pointe, however, will remain open and is reportedly one of their stronger performers. They also just renegotiated their lease thru 4/23, which is reflected on the rent roll herein. According to reports from Wall Street, Tuesday Morning should emerge from reorganization a much stronger company for the future. Other national retail tenants in the immediate area consist of Big Lots, Sherwin Williams, Dollar Tree, Rent-a-Center, Planet Fitness, Aaron’s, Sonic, McDonald’s, Discount Tire, Auto Zone, O’Reilly’s Autoparts, Wendy’s, Village Inn, and Big 5 to name a few. The city of Grand Junction, with an MSA population of approximately 147,000, has experienced its best growth period in a decade. The economy has become more diverse and less dependent on the oil and gas industry. Many new companies in the tech industry as well as service and distribution have relocated to the Grand Junction valley. In November 2019, the Bureau of Land Management began its relocation from Washington, DC to Grand Junction. Over 200 employees are expected to move to Grand Junction by July of 2020. In addition, North Avenue is undergoing a revitalization plan. It is part of a four-mile corridor which is being petitioned as an “Urban Renewal” area. This will also drive more traffic to this retail area and instill increased rents and occupancy levels for the future. Priced at a going-in 7.75 percent capitalization rate on actual rents in place and $87.76 per square foot, Red Cliff Pointe will provide a new owner with a 10 percent plus going-in cash flow, stable tenancy, anchored by world leader in plasma collection, CSL, other national tenants, excellent frontage on a major high traffic thoroughfare, and substantial upside potential in leasing up the vacant space, pushing cash-on-cash returns toward 20 percent.

Exclusively Listed By

  • Barry Higgins

    Senior Vice President Investments

    Email Barry

    License(s): CO: EA748415

    Denver

MM Texture Background
MM Textured Background Lower