Lakewood, CO
Price: $5,762,000
Cap Rate: 6.00%
Status: UNDER CONTRACT

Multi-Tenant Retail Investment
Multi-Tenant Retail Investment
Aerial-South-10750-W-Colfax
Aerial-East-10750-W-Colfax
Aerial-West-10750-W-Colfax
Multi-Tenant Retail Investment Multi-Tenant Retail Investment Aerial-South-10750-W-Colfax Aerial-East-10750-W-Colfax Aerial-West-10750-W-Colfax

Multi-Tenant Retail Investment
10750 W Colfax Ave | Lakewood, CO 80215

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Blue West Capital is pleased to present the sale of 10750 W Colfax Ave, a 42,755 SF multi-tenant retail property located in Lakewood, Colorado. The property is 100% leased to nationally recognized tenants including, JoAnn Fabrics, Harbor Freight Tools, and Guitar Center. JoAnn Fabrics is the largest fabric and craft retailer in the United States and completed their recent IPO on March 12, 2021. Harbor Freight Tools is one of the largest discount tool and equipment retailers with over 1,200 stores nationwide. Guitar Center boasts 294 locations and has recently raised $350 million in new secured notes and expects to have a new asset-based facility worth up to $375 million, as well as $165 million in new equity investments for planned growth.

  • Excellent Accessibility and Visibility along Colfax Ave:  Colfax is the main east-west arterial to downtown Denver (172,000 jobs), Sloan’s Lake, many west-line light rail stations, Metropolitan State University, University of Colorado Denver at the Auraria Campus, and Ball Arena
  • Steps to the W-Line Light Rail: Adjacent to the Oak Street transit oriented apartment development – The property is steps from the Oak Street Station of Denver’s RTD high-speed west rail line with average daily ridership for the W-Line projected to exceed 28,000 by 2025.
  • 100% Occupied, 100% Corporate Guaranteed Leases: National Tenants with Corporate Guaranteed Leases.
  • Priced Below Replacement Costs: Property is priced well below replacement cost at $135 / SF, creating high barriers to entry for similar retail space limiting future competition.
  • Market Rents: In place rents for Harbor Freight Tools and JoAnn Fabrics are 15-20% below similar store average market rents.
  • Recently Extended Leases (Tenant Commitment): JoAnn Fabrics recently exercised their 5 year option extending the lease to 01/31/27. Harbor Freight Tools recently signed a 7 year lease extension confirming their commitment to the location until 09/30/29.
  • NN Lease Structure & Ease of Ownership: Leases allow for minimal Landlord responsibility, third party management built into the underwriting, and no CCR restrictions creating long-term passive investment cash flow.
  • Thriving Industry with Harbor Freight Tools: Home Improvement saw $457B in sales during 2020, increasing by 12% from 2019. Harbor Freight Tools is one of the nation’s fastest-growing retailers with over 1,200 stores nationwide; the North American hand tools market is anticipated to grow at a CAGR of 2.0% during 2020-2026.
  • JOANN Inc. Goes Public: In the nine months ended October 31, Joann (previously known as Jo-Ann Stores) reported that its sale rose 24.3% to $1.921 billion, while the retailer returned to profit with net income of $174 million.
  • Primary Retail Corridor with Many National Retailers: Surrounded by Home Depot, Wal-Mart Supercenter, Walgreens, Safeway, Lowe’s, King Soopers, Natural Grocers, McDonald’s, Starbucks, and Chase Bank
  • Future Redevelopment Opportunity: High barriers to entry, steps to Denver’s W light rail line and flexible MGT zoning allow for a long term redevelopment of mixed use multifamily, office, retail, and medical. This zoning requires a minimum redevelopment height of 30 feet and a maximum of 90 feet.

OFFERING SUMMARY

Price: $5,762,000
Cap Rate: 6.00%

Building Size: 42,755 SF
Occupancy:
100%

INVESTMENT CONTACT

TOM ETHINGTON  
Managing Partner
Investment Sales
720.966.1624
Tom@BlueWestCapital.com

ROBERT EDWARDS  
Managing Partner
Investment Sales
720.966.1630
Robert@BlueWestCapital.com

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2021-12-28T15:32:16-07:00
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