Home News Ground-leased Cherry Creek retail property sells for first time in six decades

Ground-leased Cherry Creek retail property sells for first time in six decades

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A land rental at 2826 E. 3rd Ave. in Denver was sold earlier this month to Sheridan Venture Capital LLC for $1.9 million. (Photo credit: Unique Properties)

A property in the heart of Cherry Creek has sold for the first time in 60 years, but the buyer doesn’t own the building there.

Sheridan Venture Capital LLC, led by John Sheridan, purchased the 3,960-square-foot site at 2826 East Third Avenue earlier this month for $1.9 million ($480 per square foot).

The 4,063-square-foot building on site houses the Adornments Boutique and Cherry Creek Framing. However, the building is owned by another party, with a lease on the land dating back to the 1960s. That lease runs until his 2031.

“The building will be returned to the landlord when the lease on the land expires,” said Unique Properties Broker Brett McDougall, who represented the seller with colleagues Michael DeSantis and Hudson Cramer.

John Sheridan headshot

John Sheridan

Sheridan told BusinessDen that he feels he got a good price considering Cherry Creek has seen multiple land deals this year for over $1,000 per square foot. August sale of former Bombay clay oven site.

“It’s appreciated over time, but it’s dirt to the core,” says Sheridan.

The 3rd Avenue property is zoned up to 5 stories high. Sheridan hopes to redevelop the site with a residential project when the land lease expires, and will be available for personal use.

Sheridan said he doesn’t think it can be redeveloped with another lot. The obvious choice would be his 299 Fillmore St., home to the parent company of sushi restaurant Uchi. Signed a long-term lease agreementAnd it is expected to invest heavily in its construction.

“I’m kind of boxy, but it works,” Sheridan said.

Sheridan is an active property owner in Cherry Creek.he recently Transferred ownership of the 240 Milwaukee St. building to developer Matt Joblon In exchange for shares in an office building that Joblon plans to build.He was also part of an entity that owned Old church at 50 S. Colorado Blvd. When Office building at 155 Cook Streetboth sold in the past year.

The land was sold by the Third Avenue Trust. The last time it changed owners was in the 1960s, when a lease on the land was signed. The family behind the trust is split between Colorado and the East Coast, McDougal said, with decision makers not living locally and choosing to sell while the market was still hot.

“This property has eight parking spaces, and parking in Cherry Creek is very difficult to get, so that’s one of the big factors in the end for the buyer,” MacDougall said.

Land leases are relatively rare, but not unheard of in the Denver metropolitan area. The developer of Block 162, a new downtown skyscraper, has leased the land on the site and Denver. I rented it for ten years. bought a few weeks ago.

Sheridan buys Denver retail building

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