HRC provides JV equity for retail acquisition.

Hudson Realty Capital LLC (HRC) of New York has provided joint venture equity for the acquisition of two retail properties, totaling 2.5 acres, located at 182 Avon Road and 142 Beaver Creek Place in Avon, Colo.

The business plan includes entitling the land for a 380,000- to 420,000 s/f, mixed-use development with office, retail and hotel space as well as residential condominiums. The purchase price was $11 million and the total capitalization prior to vertical construction is expected to be approximately $13 million.

"The Town of Avon recently approved a new gondola that will take skiers directly to a Bachelor's Gulch chairlift and from there to Beaver Creek. The town of Avon is highly motivated to develop a pedestrian-friendly Main Street concept, similar to that in Vail," said Spencer Garfield, managing director of HRC, a real estate opportunity fund manager with $700 million of assets under management.

"The subject property is situated in a prime spot within the town's proposed redevelopment area that will be rezoned."

The sponsors will consider the option to sell the entitled land or develop it themselves.

The two multi-tenant retail structures contain a total of 30,715 s/f. Located on Beaver Creek Place, Avon Annex is a 16,401-square-foot retail shopping center, which currently houses ten retail tenants. The second parcel, Christy's Sports Building on Avon Road, is a 14,314 s/f, two-story building developed in 1976.

"These two retail properties are currently 92% occupied," remarked Garfield. "This is a rare investment opportunity where there is current cash flow as well as a strong likelihood of upside through rezoning."

The sponsors include a local architect, a land-use attorney and a managing director of a top commercial real estate firm.

They possess a wealth of experience in many facets of the commercial real estate industry, such as property development and management, land entitlement work and the architecture and design of large-scale projects for the resort industry and mountain communities.

"The local expertise of the sponsors made this a very attractive investment for us," added Garfield.

Since the formation of its initial two funds in 2002, HRC has closed more than $1 billion of debt and equity transactions. In addition to Colorado, HRC is active in other areas of the West, such as Southern California and Arizona, including Phoenix, Tempe and Flagstaff.