Lakewood shopping center with Casa Bonita sells for $30 million

A Lakewood shopping center anchored by the famous Casa Bonita restaurant changed hands for $30.25 million this week. The property, known as Lamar Station Plaza, was purchased by two Illinois-based firms, Core Acquisitions and Midloch Investment Partners. The sale price represents a nearly four-fold increase over what the previous owner paid for the site.

The 271,632-square-foot center at 6431 W. Colfax Ave. is currently 76% occupied. It houses national brands including Ross Dress for Less, Planet Fitness, Dollar Tree, and Dutch Bros. Local businesses round out the tenant mix with restaurants and service providers. The new owners plan to address the physical condition of the site to fill the remaining vacancies.

Broad Street Realty Inc. sold the property, having acquired it in 2014 for $8 million. The new buyers intend to implement several capital improvements. These plans include replacing roofs, upgrading facades and signage, and renovating parking lots and landscaping. The companies stated that these changes are designed to attract new tenants and increase foot traffic.

Andy Sinclair, CEO of Midloch Investment Partners, noted that the center has not received the care it deserves. He said the new management will use a hands-on approach to realize the property's full potential. Adam D. Firsel of Core Acquisitions added that excitement is high because the anchor tenant is a famous tourist attraction. Firsel highlighted that the restaurant has been returned to glory by its current owners.

Casa Bonita is owned by Trey Parker and Matt Stone, the creators of the television show South Park. They purchased the restaurant out of bankruptcy in 2021 and invested a reported $40 million in renovations. The venue reopened in 2023. The 52,000-square-foot space features 1,100 seats and draws more than 650,000 visitors annually. Its 30-foot waterfall features divers who jump into a pool every 20 minutes.

Cushman & Wakefield brokered the sale and will handle leasing for the landlord. An affiliate of Core will manage daily property operations. The buyers secured a new mortgage loan from Old National Bank to finance the purchase. Core Acquisitions, based in Deerfield, Illinois, also owns Aurora City Square, a 140,000-square-foot center that is nearly fully leased.

Midloch Investment Partners is based in Chicago and invests in multifamily, industrial, and commercial properties. The transaction was announced in a Wednesday news release. The new ownership team aims to stabilize the asset through immediate maintenance and capital investments.