Kentro Group Buys Denver Restaurant Building for $5.25 Million
The firm acquired the site housing Los Dos Potrillos using proceeds from a 1031 exchange.
Updated on Oct. 29, 2026 in Commercial
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Kentro Group has purchased the commercial building at 4100 E. Mexico Ave. in Denver for $5.25 million. The property currently serves as a location for Los Dos Potrillos, which maintains a lease on the space through July 2035.
Why it matters
This acquisition represents a strategic capital deployment for Kentro Group, which maintains a strong outlook on the long-term potential of real estate along the Colorado Boulevard corridor. The transaction was bolstered by funding from a 1031 exchange tied to the firm's development at 1001 Lincoln St.
The 8,500-square-foot building sits on a 0.65-acre parcel of land in Denver. First Interstate Bank provided a $2.9 million loan to support the $5.25 million purchase.
The players
Kentro Group
This investment and development firm is active in the Denver commercial real estate market.
Los Dos Potrillos
This restaurant brand operates a location within the acquired commercial building.
First Interstate Bank
This financial institution provides lending services for regional real estate transactions.
Stradivarius Mexico LLC
This entity served as the previous owner of the Mexico Avenue property.
The details
Stradivarius Mexico LLC, the previous owner, sold the property after holding it since 2007. Kentro Group continues to manage a separate project involving a former King Soopers store located at 825 S. Colorado Blvd.
Timeline
The previous owner purchased the property in 2007.
Kentro Group broke ground on its 1001 Lincoln St. project in summer 2026.
Kentro Group completed the restaurant building purchase during the last week of October 2026.
The current lease for Los Dos Potrillos is set to expire in July 2035.
Culture Shift
The move demonstrates the continued reliance on the 1031 exchange to recycle capital within the Denver commercial market. This trend reflects how investors use tax-advantaged strategies to consolidate long-term holdings along high-traffic corridors.
The acquisition is unlikely to change the day-to-day experience for customers of Los Dos Potrillos, as the current lease extends nearly another decade. Local residents may see shifts in the surrounding Colorado Boulevard area as the owner evaluates further development opportunities.
The takeaway
Commercial real estate investors often use tax-deferred exchanges to rebalance their portfolios between different development projects. Property owners typically secure long-term tenants like restaurants to ensure steady cash flow while holding assets for potential future redevelopment.
Further reading
For more news on local property developments, explore our Commercial section.
Source note: This article includes information reported by The Denver Post.
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