Pueblo Crossing Retail Center, Pueblo, Colorado

Property Income Advisors, Inc. advised a Gulf-based client on the purchase and financing of Pueblo Crossing, a 91,400 square foot bank-owned retail center during February 2025. The transaction was completed via a joint venture with a U.S.-based real estate operating company. The client provided a total of $10.75 million for the equity and mortgage financing.

Constructed in 2005 and currently 67% leased to nine retailers, Pueblo Crossing is well-located in Pueblo, Colorado which is about 80 miles south of Denver. Existing tenants in the three-building shopping center include Petco, Five Below, Guitar Center, Buffalo Wild Wings, Famous Footware and Super Cuts. The center is located within a strong retail corridor and is shadow anchored by well-known retailers Kohl’s, Best Buy, ULTA Beauty and Dick’s Sporting Goods.

Pueblo Crossing was bank-owned at the time of acquisition and bought at the very low basis of $79 per square foot. During the projected three-year holding period, the strategy will be to enhance the center with various repairs and improvements and to lease the vacancies and complete lease renewals aggressively in the supply constrained market.

Additionally, the two out-parcel buildings will be separated and sold-off individually at capitalization rates much lower than what the entire retail center was purchased at. This will reduce the cost basis of the property and enhance the investor’s return.

This value-add investment opportunity will provide the client with current income of about 7% from the mortgage financing and a projected IRR of 20%+ over the estimated 3-year holding period.

Responsibilities: Joint Venture Negotiation, Acquisition, Financing and Asset Management