Phil Castle, The Business Times
A private group has purchased more than 75,000 square feet of space in the Mesa Mall in Grand Junction housing the Cabela’s outdoor sports retailer.
Nursery Acres Limited Partnership purchased the space from Macerich Mesa Mall Holdings, said Larry Thiel, managing director of the Transwestern investment services group in Denver. The real estate firm brokered the transaction.
Thiel didn’t disclose the terms of the sale. However, public records from the Mesa County Clerk and Recorder’s Office indicate the property sold for $5.43 million.
Nursery Acres, a Colorado limited partnership from Golden, purchased the space to complete what’s called a 1031 exchange and plans to keep the property on a long-term basis, Thiel said.
Named for a section of the federal tax code, 1031 exchanges allow the owners of real estate to defer capital gains on the sale of one property when they purchase another property within a set time. The transaction is treated as an exchange rather than a sale and subsequent purchase.
In the case of the exchange involving the space at the Mesa Mall, the other property was a nursery, Thiel said.
Simon Property Group assumed ownership of Mesa Mall from Macerich Co.
in a swap involving 11 malls and two shopping centers they previously had owned jointly. But Macerich retained ownership of the space that once housed a Mervyn’s department store and was renovated inside and out for the Cabela’s outlet, Thiel said.
Cabela’s anchors the south end of the Mesa Mall and constitutes one of the largest retailers in a mall with a total of nearly 837,000 square feet and more than 100 stores and restaurants.
“The Mesa Mall is the largest shopping hub between Denver and Salt Lake City,” Thiel said. “This premier location and the street frontage on (U.S. Highway 6 & 50) in Grand Junction made this a very desirable asset.”
Cabela’s opened in the Mesa Mall in 2010 in what was at the time the first location in Colorado for a company that now operates 48 stores across North America with plans to open an additional 19 stores over the next two years.